Indian Bureaucracy, New Delhi, May 20, 2025 | In a major relief for retired IAS officer and former Madhya Pradesh Chief Secretary M Gopal Reddy, the Supreme Court has dismissed a Special Leave Petition (SLP) filed by the Enforcement Directorate (ED), challenging a Telangana High Court order that had completely cleared them from money laundering proceedins.
This ruling also brings significant relief to businessman M S Raju of Mantena Group, as the ED’s case against Reddy was linked to the same e-tendering allegations in Madhya Pradesh that involved Mantena Group.
“We see no reason to interfere with the High Court’s order,” the Supreme Court stated simply, dismissing the ED’s petition.
The Telangana High Court had granted full relief to both Shri Reddy and Raju in 2023, dismissing the ED’s proceedings. The High Court found no solid evidence to continue the investigation, effectively clearing them of all money laundering charges.
The ED’s probe began after a police complaint (FIR) by Bhopal’s Economic Offences Wing (EOW). This complaint alleged widespread irregularities in Madhya Pradesh’s e-tendering system, claiming manipulation of tenders worth over Rs 80,000 crore using fake digital signatures. Max Mantena, led by M S Raju, was among the companies investigated.
While the EOW’s initial complaint named various individuals and entities, the ED’s Hyderabad unit focused its money laundering probe solely on Max Mantena and the former chief secretary.
Reddy’s lawyers argued that he was only named in the EOW’s final report and not directly accused. Crucially, everyone named in the original EOW case was acquitted by a Bhopal court in November 2022 due to lack of evidence, and that acquittal was never challenged.
Reddy’s legal team maintained that the ED’s continued investigation was baseless and legally flawed, especially since the core case had already been decided by the court. The Telangana High Court agreed, emphasising that money laundering charges require clear evidence, not just assumptions.
In a related victory, the High Court also quashed the ED’s proceedings against M S Raju, with Justice M Laxman noting that the agency’s actions appeared to be an “abuse of process” and that mere suspicion isn’t enough for a money laundering prosecution.
The ED’s case further weakened when CERT-In, a cybersecurity agency that helped the EOW with digital analysis, reported that no additional evidence could be found from the seized data. This led the EOW to file a closure report in the court.
The alleged e-tendering scam initially surfaced in 2019 due to internal conflicts within the bureaucracy. The investigation began at the direction of then-Chief Minister Shivraj Singh Chouhan, following a report that led to the cancellation of nine tenders.
Click here for the full SC Order
