National » Andhra Pradesh

Updated: June 12, 2012 16:17 IST

Sandur Power: CBI grills Jagan on investments

Special Correspondent
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CBI officials accompanying Kadapa MP Y.S.
Jaganmohan Reddy back to Chanchalguda jail after
his interrogation at the CBI office in Kothi,
Hyderabad, on Monday. Photo: Special Arrangement
CBI officials accompanying Kadapa MP Y.S. Jaganmohan Reddy back to Chanchalguda jail after his interrogation at the CBI office in Kothi, Hyderabad, on Monday. Photo: Special Arrangement

Confronts him with documents showing transfer of Rs. 124 cr. into Sandur from two Mauritius-based firms

The Central Bureau of Investigation (CBI) is stated to have sprung a surprise on Kadapa Member of Parliament Y.S. Jaganmohan Reddy on Monday, second day of the interrogation, by confronting him with documentary evidence on the flow of investments into his Sandur Power Company.

The documents showed the transfer of money totalling Rs. 124 crore into Sandur from Mauritius-based companies 2i Capital and Pluri Emerging. But Mr. Jagan is said to have replied that he had sold the shares to the companies and bought them back at a premium as they fetched a profit. It was another day of marathon interrogation till 5 p.m.

The CBI team produced the documents relating to Sandur to try and establish that Mr. Jagan was indulging in money laundering. Sandur was incorporated in Karnataka to carry on the business of generation and distribution of power and was taken over by Mr. Jagan from its promoters in June 2001.

The company was involved in its regular business till 2004 but started inviting investments after his father became Chief Minister. Industrialist Nimmagadda Prasad invested Rs. 140 crore by buying 21.42 lakh shares of the company at the rate of Rs. 650 a share. In a project whose net worth was not more than Rs. 150 crore, Mr. Jagan raised investments to the tune of Rs. 797 crore, creating doubts. Those in the know of things said that although the Directorate of Enforcement was keenly looking into the ‘money-laundering' and alleged violations of the Foreign Exchange Management Act, the CBI's focus was on tracking the flow of funds into Mr. Reddy's companies and establishing the ‘quid pro quo' angle.

Meanwhile, Mr. Jagan was interrogated at the CBI office at Kothi on Monday unlike on Sunday when he was taken to the Officers' Mess in Malakpet. It came as a surprise to most city police officials who were providing logistic support as it was kept a secret till the last moment.

Security personnel had to spend some anxious moments as the convoy in which Mr. Jagan was being brought to Kothi was caught in a traffic jam at Nalgonda Crossroads .

What fair justice. He was about to file IP before his father became chief Minister.
In 4 years, he became so rich that he has paied advance income tax on Rs 450 crores profit. That is official figure that he has mentioned.
Gali Janardhan reddy and Y.s.Jagan looted both Karntaka ans A.P.
None of the punishemnt does it enough for these rogues.

from:  srinivas
Posted on: Jun 6, 2012 at 05:26 IST

Is the "Pluri Emerging" mentioned in the article the same as the Pluri E
which is said to be owned by Reliance's ADAG, and recently in news for
getting into trouble with UK regulators over improper share trading?

from:  Gayathri
Posted on: Jun 6, 2012 at 00:38 IST

The dubious question is not whether Jagan will receive fair justice, but the other way round, if country will receive fair justice from the vices of Jagan and Govt.

from:  vamsi
Posted on: Jun 5, 2012 at 23:26 IST

Is CBI independent and functioning objectively in the best interest of India?
There was a talk that CBI is infiltrated by the Malayalee mafias, political and they take action on instructions from the UPA regime leaders.
This may be one of the reasons that many serious crimes including the 2G Scam, Bofors were not investigated fully? It is shame that Jessica Lal's murder case took many years to bring the accused to Justice!
This doubts whether Jeganmohan will receive fair justice?

from:  Shiva
Posted on: Jun 5, 2012 at 16:31 IST
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