Assets worth Rs.143.74 crore attached under provisions of Prevention of Money Laundering Act

The Directorate of Enforcement (ED) on Tuesday announced attachment of immoveable properties and moveable assets worth Rs.143.74 crore belonging to Ramky Pharma City and Ramky Group under the provisions of Prevention of Money Laundering Act (PMLA) in the disproportionate assets case against Kadapa MP Y.S. Jaganmohan Reddy.

The attached properties include about 135.46 acres allotted to Ramky Pharma City (India) Ltd and assets of Rs.3.20 crore in the form of deposits in mutual funds and Rs.10 crore fixed deposits of Jagati Publications Pvt. Ltd, the amount equivalent to Ramky Group’s investment in it. The properties were attached under Section 5 (1) of the PMLA.

Second instance

It is the second instance of ED attaching properties in the case. In October last year, the agency attached assets worth Rs. 51 crore, including 35 acres of land and fixed deposit of Rs. 3 crore of Hetero Drugs, 96 acres of land of APL Research Centre Limited, a 100 per cent subsidiary of Aurobindo Pharma, and fixed deposit of Rs. 3 crore of Aurobindo Pharma.

The ED is conducting investigation under PMLA against Mr. Reddy and others for the offence of money-laundering based on the FIR registered by the CBI against him and 73 others.

Sources stated that during the course of the ED investigation, it was revealed that the Ramky Group led by A. Ayodhya Rami Reddy had invested Rs. 10 crore in quid pro quo arrangement in Jagati Publications and got 135.46 acres of land allotted to it. Ramky Pharma City (India) Ltd, which was allotted the land, had either sold plots or leased them out illegally in the land falling in green belt area and made good Rs. 133.74 crore.

Criminal proceeds

Further, it had also come to light that Ramky Pharma had sold 23 plots in a non-SEZ area and leased out eight plots in the SEZ area in the Pharma City named Jawaharlal Nehru Pharma City. The illegal sale proceeds of Rs. 133.74 crore and quid pro quo investment of Rs. 10 crore was identified as criminal proceeds. Further investigation under the PMLA is being carried out by the ED.