A court on Wednesday dismissed the bail application of suspended bureaucrat K.V. Brahmananda Reddy, arrested in the assets case against Kadapa MP Y.S. Jaganmohan Reddy, going by the apprehension of Central Bureau of Investigation (CBI) that he could be one of the beneficiaries of the sum of Rs. 300 crore diverted from VANPIC project.
His release would hamper investigation that is pending into the fraudulent diversion of funds by project developer Nimmagadda Prasad and his brother Prakash, the court ruled.
Brahmananda Reddy is an officer of Indian Railway and Accounts Service and was special secretary of infrastructure and investments on deputation to the State government when the VANPIC project was signed. He was suspended after his arrest.
The court recalled the CBI telling that investigation into diversion of funds was being actively carried out and the investigating agency will come up with facts touching the aspect shortly.
The CBI was also in the process of probing the role of self-styled representatives of one of the emirates of United Arab Emirates -- Khater Massad and A.J. Jagannatham -- in the implementation of the project.
The pendency of investigation was recognised by the High Court and Supreme Court while cancelling the bail applications of Brahmananda Reddy and Nimmagadda Prakash in the past. The court did not give credence to the argument of the defence that there was no such investigation.
Meanwhile, the notices ordered by the court to former Ministers P. Sabita Indra Reddy and Dharmana Prasada Rao for their comments that they will come out clean in the cases against them were handed over to their lawyer today.
At the request of the lawyer, the filing of counter affidavits and hearing was scheduled for June 19.