Questions related to allotment of water to ICL cement units

The Central Bureau of Investigation on Monday examined BCCI Chairman N. Srinivasan, in his capacity as vice-chairman and managing director of India Cements Ltd (ICL), for over six hours here in the disproportionate assets case against YSR Congress president Y.S. Jaganmohan Reddy.

Mr. Srinivasan was questioned as a witness though ICL figures as accused 22 in the First Information Report filed by the CBI in August last.

May have to appear later

Accompanied by his legal aides, Mr. Srinivasan arrived at Dilkusha Guest House, the CBI's makeshift office for the Jagan assets case probe, at 10 a.m. Except for a one-hour lunch break, during which he went out for about 30 minutes, he was questioned till 5.10 pm. He was told that he would be required to come again a few days later, CBI sources said.

Mr. Srinivasan was said to have been questioned on allotment of water to ICL's cement units in Nalgonda and Ranga Reddy districts and extension of lease of land having limestone reserves in Kadapa district. He was questioned by investigation officer SP H. Venkatesh and CBI Joint Director V.V. Lakshminarayana joined him in the post-lunch session, the sources said.

ICL investments

In the FIR, the probe agency said ICL had invested Rs. 40 crore in Jagathi Publications and Rs. 15 crore in Raghuram Cements. ICL was said to have purchased 12,50,000 shares in Raghuram Cements at a premium of Rs. 110 per share in 2007 and the next year it got the land lease renewed in Kadapa district for another 25 years till 2028.

After Mr. Jagan's arrest, the CBI mentioned in its remand report that ICL had invested over Rs. 140 crore in Jagan Group companies. The ICL cement units were allotted 13 million cubic feet (mcft) of water from the Kagna river in Ranga Reddy district, in addition to the then existing supply of 10 lakh litres a day through GO 94 issued in 2009, in violation of norms.

Further, Mr. Srinivasan's cement unit in Nalgonda district was allowed to draw 10 lakh gallons of water every day from the Krishna through GO 146 in 2008.