The CBI has stated that Kadapa MP Y.S. Jaganmohan Reddy prevailed upon his late father and former Chief Minister Y.S. Rajasekhara Reddy to ensure “nefarious deals” of allotting large extents of land to at least three major companies as a quid-pro-quo for investments made into entities owned by him.
YSR, in turn, mounted pressure on B.P. Acharya, IAS officer now under suspension and lodged in Chanchalguda jail in connection with another case, and former general manager of AP Industrial Infrastructure Corporation (APIIC), Yaddanapudi Vijaya Lakshmi Prasad, to complete the deal to the detriment of APIIC, said the charge-sheet filed by CBI in the court on Saturday in the assets case against Jaganmohan Reddy.
The 68-page charge-sheet supported by 233 documents was filed after seven months of investigation by the CBI. Jaganmohan Reddy is the main accused in the case while his financial advisor V. Vijay Sai Reddy is accused number 2 in a list of 13 accused. The CBI gave no indication whether it plans to arrest Jaganmohan Reddy who was in Guntur on Saturday as part of his Odarpu yatra.
The charge-sheet highlighted how the Kadapa MP got shares allotted for himself at par in his companies -- Jagati Publications and Janani Infrastructure -- but mobilised funds for them at Rs.350 a share and Rs.102 a share respectively from companies and individuals who were allotted lands in the industrial parks and other ventures developed by APIIC in the special economic zones at Jadcherla and Pashamylaram.
Jagati Publications which runs Sakshi daily and TV channel was projected as a Rs.3,050-crore company solely to attract investments at a high premium but the company did not achieve any profit till now. The valuation and credit worthiness of the company by consulting firm Deloitte Touche Tohmatsu India was ante-dated and exaggerated. It was prepared at the instance of Vijay Sai Reddy who is the lone person to be arrested in the case so far.
The charge-sheet said Aurobindo and Hetero groups were allotted 150 acres of land on lease at Rs.7 lakh an acre in the green industrial park of APIIC at Jadcherla in Mahbubnagar. Acharya played a key role in the allotment without proper assessment of the requirement of land. He cleared the file saying the Chief Minister had decided the extent and rates. The transaction resulted in a loss of Rs.12.26 crore to APIIC as the rate fixed by the Price Fixation Committee of the government ranged from Rs.15 lakh-20 lakh an acre.
An extent of 30.33 acres of land at the Export Promotion Industrial Park of APIIC at Pashamylaram in Medak was transferred to Trident Life Sciences Limited by falsely representing that it was a 100 per cent subsidiary of Aurobindo Pharma. Otherwise, the deal was not allowed as per APIIC rules.
