ED probes charges of cheating, fraud and falsification of accounts

The Enforcement Directorate has attached property worth Rs. 863 crore, allegedly belonging to YSR Congress president Y.S. Jaganmohan Reddy and industrialist Nimmagadda Prasad and their companies, as proceeds of crime, under the Prevention of Money Laundering Act (PMLA).

The ED is probing the allegations of cheating, fraud and falsification of accounts against Mr. Reddy and others, besides other offences, under the Prevention of Corruption Act.

It launched investigations on the basis of a charge sheet filed by the CBI in connection with the Vadarevu and Nizampatnam Industrial Corridor (VANPIC) project meant to develop two seaports at Vadarevu and Nizampatnam and a port-based industrial corridor in Prakasam and Guntur districts of Andhra Pradesh.

The charge sheet alleges that various concessions were extended to the project, in the form of alienation of huge chunks of government land for the companies floated by Mr. Prasad. The case also pertains to development of a shipyard and a greenfield airport, and alleged exemption from stamp duty, registration charges and seigniorage fee, and other undue benefits to the industrialist.

It said an illegal gain of Rs.1,426.17 crore had gone to Mr. Prasad in land acquisition, and as a quid pro quo , Rs.854.54 crore was paid to Mr. Reddy and his companies. Mr. Reddy and Mr. Prasad were earlier arrested by the CBI.

Sources said the assets attached are held by Mr. Reddy and his companies, Carmel Asia Holdings Private Limited and Jagathi Publications Limited; and Mr. Prasad and his companies G2 Corporate Services, Alpha Villas, Alpha Avenues, Gilchrist Investment, Suguni Constructions and Beta Avenues Private Limited.


  • ED opened probe based on CBI charge sheet in VANPIC project

  • Industrialist Nimmagadda Prasad got various “undue benefits”