Those arrested have been identified as Chief Executive Officer (CEO) of Telangana Livestock Development Agency, former MD of TSSGDC (Telangana State Sheep and Goat Development Cooperative Union Limited) and Gundamraju Kalyan Kumar, former OSD to the then Animal Husbandry Minister. Dairy development, fisheries and cinematography.

The ACB alleged that he colluded and conspired with private persons, resorting to gross illegal acts and violations in the course of discharge of his duties.

According to the agency, they violated the instructions issued for procurement of sheep and knowingly involved private persons/middlemen in the procurement process.

Both gave instructions to all District Joint Directors/DVAHOs of Animal Husbandry Department to knowingly facilitate misuse of government funds by private persons.The accused, in collusion with private persons, illegally obtained undue advantage, caused wrongful loss to the public exchequer and thereby misappropriated public funds amounting to Rs 2.10 crore.

With this the number of accused arrested in the case has increased to 10.

In February, ACB had arrested four officers.

The ACB began investigating the sheep distribution scheme in January following allegations that some beneficiaries were defrauded.

The case was registered in December 2023 after some people filed a complaint against officials and middlemen, including two assistant directors and two contractors of the Animal Husbandry Department.

Sheep Husbandry Development Scheme (SRDS) was launched by the state government in April 2017 to provide sustainable livelihood to the traditional pastoral families and improve their economic standard.

Under the first phase, each family was given 20 sheep with a unit cost of Rs 1.25 lakh at 75 per cent subsidy.The total expenditure on implementation of the scheme was Rs 4,980.31 crore.

About 82.74 lakh sheep were purchased from other states and distributed among 3.92 lakh members of Primary Sheep Breeders Cooperative Societies (PSBCS).

The Comptroller and Auditor General (CAG) in its report presented in the state assembly in February had indicated large-scale irregularities in the implementation of the scheme.

The CAG report on general, social and economic sectors of Telangana for the year ending March 2021 suspects fraud in the implementation of the scheme.

During test-checking of implementation of the scheme in seven districts, Audit noticed serious deficiencies like non-maintenance of beneficiary-wise files, non-availability of challans in support of transportation of sheep, payments made on improper/manipulated challans, challans containing Gone.Fake vehicle registration numbers and invoices indicate transportation of sheep units in excess of the number possible/permitted.

In one instance, it was found that a two-wheeler was used to transport 126 sheep in a single trip.

It was claimed that two-wheelers, cars/vans, buses and even ambulances were used to transport the sheep.

Not just passenger vehicles, even fire trucks, water tankers and Mobil compressor vehicles were shown as being used to transport sheep.