The CBI has informed a court here on Friday that it was not sure how long the investigation into the assets case against Kadapa MP Y.S. Jaganmohan Reddy will take as there were too many aspects to be covered by the probe.
The completion of investigation depended on the magnitude and seriousness of offences as they unfolded, the CBI told the court while opposing bail for Mr. Jaganmohan Reddy's financial advisor V. Vijay Sai Reddy. The judge B. Naga Maruthi Sarma reserved his order after three days of hearing for Monday.
The special public prosecutor of CBI P. Keshava Rao, in his argument, said Mr. Sai Reddy was not entitled to bail at this stage of investigation going by the seriousness of the case and nature of economic offences involved. The latter played an active role in incorporating bogus companies to pump money into businesses of Mr. Jaganmohan Reddy. The money was received by Mr. Jaganmohan Reddy himself as bribe for quid-pro-quo benefits extended to various other companies.
Quoting Income-Tax assessment orders in support of his argument that Mr. Jaganmohan Reddy owned Jagati Publications resorted to fraudulent accounting practices since inception, Mr. Rao said the company treated as ‘income from other sources' a cash credit of Rs. 292.15 crore from sale of shares at 35 times the issue price. There was also an unexplained credit of Rs. 272.65 crore in the books which was apparently received as investment from shell companies.
Jagati Publications started receiving investments when it was yet to commence operations and had not even installed plant and machinery. It also received advertisements which are the main source of income for newspapers, he added.
Defence lawyer Sushil Kumar argued that the I-T orders were being contested in an appellate tribunal and asked why Mr. Sai Reddy should be denied bail as he had not gained anything from the transactions of either Mr. Jaganmohan Reddy or Jagati Publications. He accused CBI of misusing law by filing incomplete charge sheets with a view to deny bail to his client.
