The Central Bureau of Investigation (CBI) on Thursday questioned Andhra Pradesh Minister for Information Technology Ponnala Lakshmaiah over the Government Orders issued when he held the portfolio of Major Irrigation in the late Chief Minister Y.S. Rajasekhara Reddy’s Cabinet.
The GOs pertained to allocation of water from the Kagna and Krishna rivers to the manufacturing plants of India Cements in Ranga Reddy and Nalgonda districts respectively.
Mr. Lakshmaiah was summoned by the CBI in connection with its probe into the disproportionate assets against YSR Congress president Jaganmohan Reddy. Six Ministers and eight IAS officers were ordered to be investigated by the Supreme Court in connection with 26 controversial GOs issued by the YSR Government.
While one Minister - Mopidevi Venkataramana Rao is currently in judicial custody, two others - Sabita Indra Reddy and Dharmana Prasada Rao have already been examined at length by the CBI.
It was during Mr. Lakshmaiah's tenure that the then Government issued orders allocating of 3 lakh gallons of water a day from the Krishna and 13 million cubic feet annually from the Kagna river to India Cements. It is believed that India Cements had sought to double its production capacity and hence needed water from Kagna and Krishna rivers.
India Cements had invested Rs. 15 crore in Raghuram Cements, later renamed as Bharati Cements, after its acquisition by Mr. Jaganmohan Reddy and Rs. 5 crore in M/s Carmel Asia Holdings. The latter is a subsidiary of Sandur Power Company, owned by Mr. Reddy over which the MP was grilled for several hours by the CBI recently.
The CBI also questioned senior IAS officer Adityanath Das, who earlier handled the subject of irrigation. It is understood that representatives of Bharti Cements and India Cements were also grilled. The investigating agency also summoned officials from the Secretariat besides requisitioning note files.
Meanwhile, the CBI examined Mr. Jaganmohan Reddy for the fifth consecutive day at its office here in Koti. As his police custody ends on Thursday, the CBI is likely to approach the Special Court seeking his custody for at least two more days as it is unhappy with Mr. Jagan’s replies. The MP’s judicial remand will come to an end on June 11 and he will be produced before Court for further orders.
