The case against N Srinivasan


Photo courtesy: ibnlive.in.com

An investment of Rs 135 crore that was made in Jagathi publications and Bharathi cements is what has prompted the Central Bureau of Investigation to summon, BCCI Chief and Managing Director of India Cements, Srinivasan for questioning.

The Central Bureau of Investigation which is probing the Jagan Mohan Reddy assets case will question Srinivasan and also the Managing Directors of Penna Cements and Dalmia cements. The questioning of Srinivasan will take place tomorrow, according to sources.

The CBI is aiming to find out the favours that these companies got through the Dr Y S Rajasekara Reddy cabinet in the form of water allocation. It is believed that the water was allocated out of turn and in a bigger quantity due to their investments in Jagan owned companies such as Bharathi and Jagathi.

In addition to this there would be questioning with regard to certain benefits that were received in the form of limestone mines which again was done thanks to their investments in Jagan owned companies.

Jagan Mohan Reddy was arrested a little over a week ago by the CBI for various of fences pertaining to financial crimes. He was sent initially to judicial custody and later handed over in CBI custody for five days.

On the case on hand, the CBI started with the questioning of Ponnala Lakshmaiah a cabinet ranked minister who was formerly the irrigation minister. This led to some details about the limestone mines allocation which was allegedly granted under Dharmana Prasada Rao who was the revenue minister in the YSR Cabinet.

The CBI’s case is that India cements thanks to its investment in Jagan owned firms received a massive allocation of water which in turn boosted the production. The CBI would want to know whether these allocations were connected to the investments made in Jagan firms as a result of which the benefits were reaped. It is alleged that during the YSR regime two allocation through government orders were made to allocate water to India cements from the Ranga Reddy and Nalgonda districts.
The CBI would seek an explanation from the India cements head as to how the allocation of water from 3 lakh gallon per day was suddenly enhanced to 10 lakh gallon per day from the Ranga Reddy district water plant which was drawing water from the Kagna river. It is alleged that as a result of these allocations the production of India cements doubled.

The CBI has drawn the link between India Cements and Jagan Reddy on the basis of the investments that were made. It is alleged that the first investment of Rs 15 crore was made into Raghuram cements which became Bharthi cements after Jagan acquired the same. Further it is also alleged that both parties made profit after a part of the stake belonging to Jagan Reddy was acquired by a French company. It is also alleged that India cements had invested in another holding by the name M/s Carmel Asia Holdings apart from the investments in Jagathi publications.

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