Madhusudhan was reportedly arrested by the police in March as part of the probe into the illegal mining case.
The Enforcement Directorate on Thursday searched the premises linked to Telangana Bharat Rashtra Samithi (BRS) leader Gudem Mahipal Reddy and his brother Gudem Madhusudhan Reddy in connection with an alleged illegal mining-linked money laundering case.
Mahipal Reddy is the BRS MLA from the Patancheru seat. Official sources said that around seven to eight premises including that of a quarrying company linked to Madhusudhan, were searched.
Madhusudhan was reportedly arrested by the police in March as part of the probe into the illegal mining case. The federal probe agency's money laundering case stems from an FIR registered by the Patancheru police.
Based on a complaint by the Mandal Revenue Officer, who accused Madhusudhan of illegal and excessive, the Patancheru MLA's brother was sent to judicial custody, Times of India reported.
Standing at the centre of the allegations in the matter is Madhusudhan's company -- Santosh Granite Mining -- which also includes violation of central environmental regulations and unauthorised excavation beyond permissible limits.
Madhusudhan reportedly continued his mining operations even after his relevant permits had expired, the report said.
The quarry operations were recently seized by local authorities. The police case of illegal mining and cheating against Madhusudhan on the basis of the Tehsildar's complaint led to his arrest and the subsequent seizure of his crushers.
Sangareddy Collector Valluru Kranthi, after the discovery of this illegal mining case, ordered an enquiry by a task force committee, led by Sangareddy RDO Ravindar Reddy.
The committee's probe also unearthed several other illegal mining activities run by Madhusudhan's companies in Lakdaram.
In view of the ongoing probe by the anti-corruption agency, MLA Gudem Mahipal Reddy has also come under the lens of criticism.
(With PTI inputs)