The last day of police custody granted to the CBI by a court to interrogate Kadapa MP Y.S. Jaganmohan Reddy was reported to have been used mainly to question him on divestment of his shareholding in Bharati Cement in favour of a Switzerland-based company to earn crores of rupees.
Summons issued
Mr. Jagan who was sent back to Chanchalguda central jail after that will be produced in court by jail authorities on Monday morning.
A dozen others, including Srikakulam Collector G. Venkatram Reddy and Ramky group chairman A. Ayodhya Rami Reddy, will go there on their own in response to summons. Mr. Venkatram Reddy took the permission of the Election Commission to appear in the court as he is the district election officer.
The heads of Aurobindo and Hetero groups will also be there. The court had issued the summons to mark the first appearance of the accused in the three charge-sheets filed by the CBI so far in the assets case against Mr. Jagan. Incidentally, the interrogation of Mr. Jagan was over on Sunday precisely at the hour the campaigning for elections to 18 Assembly and one Parliament seat ended. CBI officers were said to have questioned him on the transactions with the Switzerland-based company PARFICIM which allegedly fetched him a windfall.
Doubts on two counts
The company was later acquired by a French entity raising doubts on two counts – its abnormal valuation and management being left to Mr. Jagan though he was a minor stakeholder. Matrix group chairman Nimmagadda Prasad, who is in jail, was said to have played a key role in the transactions. Mr. Jagan was questioned about a gain of Rs. 350 crore by Mr. Prasad after the entry of the French company and reinvestment of the money by him in Jagati Publications, sources said.
Questioning focus on Jagati
The seven-day custody of Mr. Jagan granted to the CBI by the High Court in two spells resulted in his interrogation on several issues pertaining to investments into his businesses, mainly Jagati Publications.
The CBI had to approach the High Court because the trial court refused the custody on ground that Mr. Jagan was produced before it in response to its summons, while the investigating agency sought his custody on the ground that he was arrested in a fresh case.
The court, meanwhile, had rejected the bail application of Mr. Jagan expressing fear that he could tamper with evidence. His plea to allow him to campaign in the by-elections was also turned down.
