In another set back to Jagan Mohan Reddy the Enforcement Directorate has decided to take possession of his properties worth Rs 122 crore. The newspaper under the Jagathi publications are part of this order, but the Reddy team told rediff.com that the functioning will not be affected. (more…)
N Srinivasan, managing director of India cements and BCCI chief has said that he had done nothing illegal. Srinivasan has been summoned by the Central Bureau of Investigation (CBI) for questioning in connection with the Jagan Mohan Reddy disproportionate assets case.
Srinivasan who is in Bangalore for a gold tournament spoke to the media outside the Karnataka Golf’s Association.
Reacting to the CBI summons he said I will fully cooperate with the CBI and give my reply considering I have done nothing illegal.
He also said that this is nothing new and the company has ready been asked about this. Responses to the CBI have been given in great detail. Whatever rights we were given are within the industrial policies of Andhra Pradesh and hence we are confident that India cements have done nothing wrong.
As far as the company is concerned we will cooperate and they can examine anyone they want.
We have already explained that we have purchased shares and also sold at a high price. This has all been explained and there is nothing untoward on this.
Srinivasan, is likely to be questioned tomorrow at Hyderabad by the CBI. The allegation is that India Cements had invested Rs 135 crores at Jagathi Publications and Bharati Cements which are Jagan owned companies.
It is also alleged that India cements had received favours in the form of additional water allocation for there industry.
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.
In a major set back to Jagan Mohan Reddy, the CBI court on Monday rejected all three petitions which had challenged the CBI action freezing accounts of three of his holdings. The CBI court upheld the decision of the CBI which had frozen the accounts of Sakshi media, Jagathi publications and Janani infrastructure.
Jagan had moved the CBI court stating that the CBI action was bad in lawam he said that the decision to freeze the accounts affected the livelihood of 20000 employees. The CBI however countered this argument stating that it was necessary to freeze the accounts as the money trail was an important part of the probe into the disproportionate assets case against Jagan.
The CBI court stated that there was no ground for inteference at the moment. Jagan will challenge this order before the Andhra Pradesh High Court.
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The CBI court which is hearing a plea challenging the freezing of accounts belonging to three Jagan Mohan Reddy companies will deliver its verdict on May 14. The court heard arguments advanced by both Jagan’s legal team and also the Central Bureau of Investigation at length before reserving its verdict.
The CBI had frozen three accounts of the Sakshi TV media, Jagathi publications and Janani Infrastructure. Jagan had challenged this action. The CBI counsel while justifying their action stated before the court that there was an absolute need to freeze the account. We need to probe the trail of funds which was parked in these three companies. The CBI has been probing the money which has been allegedly earned through corrupt means and parked in these companies, the CBI counsel submitted while pressing that the action was absolutely crucial for the investigation.
Meanwhile Jagan’s counsel argued that the CBI had no right to freeze these accounts as the entire trail was clear. There are big investors and all their records are clean and the taxes too have been paid, the counsel submitted. He also said that this action affects the livelihood of 20000 employees.
Meanwhile Jagan in a statement said that this was a ploy by the ruling Congress and the TDP. He said that these actions are violative of freedom of expression.
The CBI court will pass its orders on a petition challenging the freezing of accounts belonging to the Jagan Mohan Reddy group. In another development the State Human Rights Commission has issued notices to the CBI returnable by June 6th asking it to explain its stand on the same issue.
A group of lawyers moved the State Human Rights Commission and complained that freezing of the Sakshi TV accounts affected the livelihood of 20000 employees of the group. The commission issued notices to the Joint Director of the CBI and sought an explanation on his action. The CBI would have to respond to the notice by June 6th.
Meanwhile the CBI court has directed the CBI to file its counter arguments by tomorrow following which it would pass orders. Jagan had challenged an action of the CBI which had frozen three accounts of Sakshi TV, Jagathi publications and Janani infra.
In Hyderabad around 100 journalists also took out a protest march against the CBI action and submitted a memorandum to the Governor.
Jagan Mohan Reddy who has been having sleepless nights thanks to the Central Bureau of Investigation has decided to move the court against the move to freeze accounts of Sakshi TV, Janani infra and Jagathi publications.
The Central Bureau of Investigation which is probing an assets case against Jagan Mohan Reddy had frozen the accounts of the above mentioned companies as it believes that money which was illegally gotten was parked in these three companies. The CBI had written a letter to the managers of the three banks to freeze the accounts of these companies yesterday following which it was frozen.
Jagan has however decided to move the court seeking a directive to release the accounts of the three companies. He states that if the CBI wanted information regarding these accounts they could have sought the information from the bank manager. The investigation is not regarding the daily transactions of this company but was regarding the equity of the company. There is no irregularity in the daily transaction and the taxes are up to date and hence freezing the accounts makes no sense at all, Jagan’s legal team states.
The freezing of these accounts has come as a jolt to the Jagan camp. Sakshi TV and Jagathi publications are considered to be the voice of the leader through which he has been running his campaign against the Congress. Sources say that if the accounts remain frozen then the going may get rough for the news channel and the publication after another 15 days. Moreover it becomes difficult for him to pump in money from other resources as all transactions are currently under very heavy scrutiny at the moment.
It is fresh trouble for Jagan Mohan Reddy with the Central Bureau of Investogation freezing the accounts of three companies owned by him including the Sakshi TV.
The CBI froze the accounts under the provisions of Section 102 of the Code of Criminal Procedure. The CBI froze the accounts of Jagathi publications, Sakshi TV and Janani Infra all of which are controlled by Jagan Reddy. The CBI has taken this action in continuance of their probe against in the disprportionate assets case. It was alleged that the money made by Jagan through his late father Dr Y S Rajasekara Reddy was pumped into the above mentioned companies. It is also been alleged that these companies acted as fronts to stash his money illegally.
Meanwhile Jagan also faces a summons from the CBI court. The court has directed Jagan to appear before it on May 28th.
Jagan has reacted sharply to the latest development. There is no freedom of speech here and hence they are after my channel Sakshi TV. I do not think the situation was this bad during emergency too. They want to eliminate Sakshi television at any cost. They cannot face me and hence this ploy, Jagan also told the media.
In a major blow to YSR congress leader, Jagan Mohan Reddy, the Central Bureau of Investigation has filed a chargesheet against him in the illegal assets case.
The chargesheet which runs into 68 pages names Jagan and 12 others.
Jagan has been named as the first accused in the case while his close aide who is under arrest, Vijay Sai Reddy is accused number 2 in the case. The chargesheet also names IAS officers among other aides who had assisted Jagan in the illegal assets case.
List of accused:
Jagamohan Reddy,Vijaya Sai Reddy,Aurobindo,Heteroo,Trendent Technologies ,Srinivas Reddy,Nithya Reddy, Sharath Chandra, B P Acharya ,Vijayendra Prasad, Chandramouli, Jagathi Publications and Naani Infrastructures.
The CBI’s 68 page chargesheet has cited 66 witnesses and has annexed 263 documents.
A petition had been filed in the court by the Telegu Desam Party seeking a CBI probe into the assets of Jagan Mohan Reddy. Based on this petition a CBI probe had been ordered.
The CBI which filed the chargesheet is however not clear on whether they would arrest Jagan or not. He is yet to be summoned by the CBI and needs to also be questioned. A member of his legal team said that the allegations made against Jagan are not specific in nature. The CBI on the other hand would want to act on Jagan only on the basis of what the courts would tell them. They would seek directives from the court on the course of action to be taken against Jagan.
There is a good chance of a political backlash in case he is arrested and allegations that the CBI has been acting at the behest of the Congress have been flying high.
Jagan’s lawyers say that they would study the chargesheet first and then move the court seeking to quash it. The CBI on the other hand is also exploring the possibility of filing a supplementary charegsheet in due course of time. It would have to probe further and convince the court that Jagan’s arrest is needed to close the case.
In the past couple of days there were speculations that Jagan may be arrested before the chargesheet was filed. CBI joint director, V Lakshni Narayana was also in New Delhi consulting with higher ups on the course of action to be taken. It was decided in Delhi that they would first go with a preliminary charegsheet and seek further time to investigate the matter.
Jagan Mohan Reddy will be questioned by the Central Bureau of Investigation at their Koti office in Hyderabad today. The CBI has on it over a 1000 questions to ask which link Jagan’s front companies to the Obulapuram Mining Company which is run by the Bellary mining lord, Janardhan Reddy who presently is in jail.
What the CBI will need to prove now is that the link between R R Global, Red Gold and the OMC. The allegation has been that 50 per cent of the iron ore mined by the OMC was being given to RRG and RG. Moreover this 50 per cent of the ore also included the one that was mined illegally is the allegation.
The case does not end just here. It is also said that all the money that was earned through this deal with OMC was being pumped into companies such as Jagathi publications which are owned by Jagan. The questioning will revolve round this nexus and although Jagan has denied any link here, the CBI still says that it has enough of proof on hand to prove the nexus. The first bit of the nexus would be that the directors of RRG, RG and Jagathi Publications are the same. This is enough to show the nexus the CBI points out. Moreover there is also the backing the Lokayukta report on illegal mining put out in Karnataka which shows that RRG has mined illegally.
This is what the Lokayukta report has to say under- List of Exports of iron ore after the Ban on Issue of permits for destinations for exports by the Government on 28/07/2010. R R Global Enterprises had two transactions after the ban on mining in Karnataka. On August 18 2010 the company had through the vessel M V .Yong Ping 5 transported 31000 metric tonnes of iron ore from the Krishnapatanam port. There is also another transaction to show that the same company had through the M V Bosco Sun vessel had transport ore measuring 2000 metric tonnes from the same port.
Jagan however denies these allegations and says that there is no link between these companies and the OMC. He says that there was an agreement on paper to provide ore, but the same had never been acted upon. This agreement is just there on paper but has never been honoured. Since it is only on paper the allegation is not correct, Jagan adds. He would tell the CBI the same thing. The allegation that this contract had been entered into since it was Jagan’s father the late Dr Y S Rajasekara Reddy who made the mining lease possible for the OMC is also something that Jagan defends. He says it was a government action which was approved. Hence he had nothing to do with it. The government of Andhra Pradesh should be questioned regarding this and not me he adds.
The CBI however has kept certain documents close to its heart and would reveal it during the interrogation today. A major operation had been conducted at the Krishnapatanam port recently by the CBI where several port officials were questioned. In addition to this the CBI has seized several documents pertaining to this case and this would form part of the questioning today. In addition to this searches have also been conducted at Sandur in Bellary in connection with this case.
The money trail would be another aspect during the questioning today. It is said that these companies have earned close to Rs 4000 crore. There is also a trail to show that around Rs 44 crore has been invested into the publications that are owned by Jagan. The CBI would also like to know as to why Jagathi Publications and R R Global have been registered under the same address with the same directors.
While this is one part of the case on hand the other case relating to the same matter concerns the investment of Rs 74 crore in Jagathi publications and Indira Television which has been made through R R Global. It is said that this money was raised through illegal mining carried out by OMC which was again offered at a discounted rate.
The questioning at the CBI office at Koti, Hyderabad has commenced and it is not clear as yet whether the entire exercise would be completed today. The CBI has several questions on hand and it is likely to spill over to tomorrow as well. The police meanwhile had a tough time to keep the party workers away from the CBI office o have been protesting since morning terming the exercise as a witch hunt by the ruling Congress party.