Can Naidu say he is clean?

vijamaShe has no doubt in her mind that her son will be the first Chief Minister of Seema-Andhra (Andhra Pradesh). Vijayamma the mother of Jagan Mohan Reddy and wife of Dr Y S Rajasekara Reddy has become a star campaigner from being the humble wife of a Chief Minister.
One gets to see a lot of difference in Vijayamma today. After the death of her husband and arrest of her son, she was more emotive and broke down very easily while speaking about the incidents in her life. She as subtle when she said she had been wronged by Sonia Gandhi who put Rahul Gandhi’s interests ahead of everything.
Today, when Vijayamma holds a mike she is a picture of confidence. She is demanding in the manner she speaks and makes the point very clear that the YSR Congress party is the only choice.

Continue reading “Can Naidu say he is clean?”

AP battle- Which star will shine brightest?

telactActors in Andhra Pradesh enjoy the status of demigods and they sure draw in the crowds. But when it comes to winning the battle one could say that none has repeated the feat that N T Rama Rao did.
The star list includes, Chiranjeevi, Vijayshanthi, Pawan Kalyan, Nagarjuna, Roja, Mohan Babu, U V Krishnam Raju, Balakrishna, Jayasudha, Ali, Murali Mohan and Junior NTR.

Many in this list are contesting the elections, but stars such as Nagarjuna, Pawan Kalyan and Mohan Babu will stick to campaigning all the rest mentioned above will contest the elections. Junior NTR who has campaigned for the Telugu Desam Party earlier is looking to contest the elections and is in talks with Chandrababu Naidu.

Continue reading “AP battle- Which star will shine brightest?”

Will Cong go soft on Sabitha Reddy?


Sabitha Indra Reddy, the Home Minister of Andhra Pradesh finds herself in the dock following her name appearing the Central Bureau of Investigation chargesheet in the Jagan Mohan Reddy case. She is expected to resign later today, but it appears unlikely for now that the Congress may accept her resignation.

Sabitha Indra Reddy has more benefits to offer to the Congress and despite her being very close to the YSR family, they would still try and ensure that she stays on in the party.

Continue reading “Will Cong go soft on Sabitha Reddy?”

Telangana- The deal breaker explained here


There is a lot of guess work that is going on regarding the sudden shift in stance by the Union Government regarding the Telangana issue. Madhu Yashki Goud, a senior leader of the Congress and also Member of Parliament from the Telangana region blames the change in stance it on a faction within the Congress controlled by the very powerful K V P Ramachandra Rao. Continue reading “Telangana- The deal breaker explained here”

Telangana will be a reality ‘very’ soon

telanganaThe state of Telangana is likely to become a reality for those fighting for a separate state very soon. Highly placed sources in the Congress Delhi informed that it has become inevitable to keep the formation of the state pending and a decision announcing Telangana will be made very soon.

This time around the Congress is not likely to toy with the formation of the state. There are no discussions on the anvil left anymore and an announcement would be made. The matter has been discussed and debated at length by the Pranab Mukherjee, Ghulam Nabi Azad and membes of the Congress from Andhra Pradesh before a decision was arrived at. Continue reading “Telangana will be a reality ‘very’ soon”

Despite war with Congress Jagan will back Pranab

The politics in Andhra Pradesh can sometimes be very strange. The meeting of Asaduddin Owaisi of Majlis-e-Ittehadul Muslimeen and Jagan Mohan Reddy at the Chanchalguda jail has raised many eyebrows. Sources in the YSR Congress party now tell that the party would chose the candidature of Pranab Mukherjee as president for two reasons- one they feel he is the best choice and secondly they would not want to side with the NDA at any cost.

Owaisi’s meeting with Jagan has led to speculation that an attempt was being made to broker peace between the Congress and the YSR Congress which had a falling out as a result of which the former suffered a major set back in the recently held by poll. Owaisi had told reporters in Hyderabad point blank that the meeting was nothing more but only dealt with the discussion regarding the Presidential poll. Owaisi said that during the discussion Jagan was requested to support the candidature of Pranab Mukherjee.

Sources in the YSR Congress say that whether or not Owaisi had met Jagan, the party would have still supported the candidature of Pranab Mukherjee. The reasons assigned for supporting the Congress led UPA’s candidate is because the party feels that he is a seasoned politician, has a great stature and also is a very capable leader.

The other question that comes to mind is why would Jagan side with a candidate from the Congress especially when he has declared war against the same party in Andhra Pradesh. Jagan’s party states that between the UPA and the NDA they would still side with the former despite it having the Congress in it. YSR Congress party sources say that siding with the NDA would mean supporting the BJP and this would put them at risk of losing the 8 per cent Muslim vote in Andhra Pradesh. Moreover the decision by Jagan’s father, Dr. Y S Rajasekara Reddy to provide a 4 per cent reservation for Muslims in both the education sector and in government jobs has appeased the Muslims a great deal and Jagan would not like to toy with that equation. This decision taken by YSR is however pending judicial scrutiny.

While this is one part of the story, the other is obviously an attempt to patch things up between Jagan and the Congress. Although Jagan beat the Congress out of recognition in the by-elections he still needs some favour from the Congress thanks to the CBI probe against him. Moreover the Congress too realises that taking Jagan on in Andhra Pradesh has done no good to their poll prospects and the results in the by-elections are nothing but a pre cursor to what can happen in the assembly elections slated next year.

Although Owaisi is in denial that he was sent by the UPA to broker peace with Jagan, many political observers believe that there is definitely an attempt being made to patch things up. Jagan would not have met anyone from the Congress and it would have looked very obvious had the Congress decided to send one of their men. Owaisi who is a part of the UPA was a better choice for the Congress.

Owaisi and Jagan go a long way back and have been the thickest of friends even before Jagan joined politics. Whether there was an issue or not Owaisi would have still met with Jagan as they are friends. Owaisi was away from the country and hence this meeting took such a long time. Sources in the YSR Congress party say that they are not aware of what exactly transpired but add that a final decision would be taken on the issue of the Presidential election only during the core committee meeting of the party slated in the next few days. However they also add that Jagan did not commit anything to Owaisi, but remained positive about the candidature of Pranab Mukherjee.

With regard to a patch up between Jagan and the Congress, the former’s supporters say that it is highly unlikely and he would continue to fight the elections on his own. Jagan is aware that the Congress is a bit desperate at this moment and he can continue to win elections despite him being in jail. Moreover the emergency meeting convened by the Congress after the poll debacle drew a blank and even Ghulam Nabi Azad the head of the Congress Coordination Committee in Andhra Pradesh too decided to give the meeting a skip which has made the Jagan camp believe that the party is wavering without any direction.

The case against N Srinivasan

Photo courtesy:

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.

Jagan Reddy- What is in store for him?

Illustration courtesy: India Today

Section 144 of the Code of Criminal Procedure has been clamped in the city of Hyderabad ahead of Jagan Mohan Reddy’s questioning by the Central Bureau of Investigation. Jagan will be questioned by the CBI in connection with the disproportionate assets case tomorrow at 10 AM.

Anticipating trouble the state administration has clamped Section 144 Cr PC in Hyderabad and the orders will remain in place till the 29th of May.

The Jagan camp appears to be tense ahead of this questioning as they feel that this procedure is a step closer to his arrest. Jagan who is currently campaigning at Guntur will have to be present before the CBI officials at 10 AM tomorrow and his questioning is likely to last the entire day, sources informed. Jagan however has said that he will cooperate with the CBI as he has nothing to hide and would go through the drill tomorrow.

This is the first time that the CBI is questioning Jagan Reddy of the YSR Congress party ever since they took over the investigations into the case. Although they have already filed a preliminary chargesheet against him and the other co accused in the case, they had not questioned him. This infact had become a major defence for Jagan Reddy and he claimed innocence on the ground that had the CBI had anything against him, they would have questioned him by now.

However the CBI realising the high profile nature of this case has not acted on its own in this entire case and instead relied always on the verdict of the court. Even before questioning Reddy, they had approached the special CBI court which granted permission to question him. This was however challenged before the Andhra Pradesh High Court which on Wednesday refused to interfere with the order of the Special CBI court.

Ever since the CBI began investigation there was always this talk of his arrest. However Jagan took cover under Section 41 A of the Cr.PC which clearly states that no arrest can be carried out unless and until a notice of appearance is served and the accused questioned. However today the scenario is different and the provisions under Section 41 A have been fulfilled by the CBI and after the questioning they are empowered to arrest him.

However sources also indicate that although an arrest in this case is imminent, it still may not take place immediately. The CBI as has always done in this case will continue to go by the book and would prefer the court to issue directives on how they should proceed. This particular case has a lot of political ramifications and any move suo motu by the CBI will be viewed as a directive by the Congress at the centre. It is a well known fact that Jagan is the biggest worry for the Congress in Andhra Pradesh.

The CBI would take this case step by step as from tomorrow on wards the major focus of the case would be Jagan alone as the investigation of the rest of his associates has already been completed. They would first question him and during the procedure verify the evidence they have on their hand. Following this the same would be corroborated and then a final chargesheet in the case will be filed following which it would be placed before the court. If the court finds it necessary then it could order the arrest of Jagan. However prior to this exercise if the CBI feels that Jagan is likely to abscond or tamper with evidence, the agency could arrest him even without an order from the court. However this is an unlikely scenario.

Some political observers in Andhra Pradesh however feel that there is likely to be a compromise formula at the end of all this. It would largely depend on Jagan and how much he is willing to fight or break the Congress in the state. The likelihood of Jagan allying with the Congress just before the elections is also not ruled out as he would be left with no choice thanks to the pressure of these cases against him.

The other option on hand for Jagan is to continue this battle and in the event of him going to jail ask his mother to take over the mantle of the party until he is cleared. The Congress would however not want that either as they are aware that Jagan’s mother who is the wife of the late Dr Y S Rajasekara Reddy is quite capable of causing more damage with a sympathy factor under her belt. The Congress does realise that their real problem is Jagan and not Telangana. All the leaders from Telangana and also other parts of the state have managed to convince the high command that it is Jagan who would be the big worry for them in the state and unless this issue is dealt with the future of the party looks bleak in the state.

Naidu case to be heard in AP itself

The Supreme Court of India on Monday remarked that it was not right to doubt the integrity of any court. The observation was made by a Bench comprising Justice B S Chavan and Justice T S Thakur which was hearing a petition seeking transfer of cases against Chandrababu Naidu to a court outside Andhra Pradesh.
Vijayamma, wife of Dr Y S Rajasekara Reddy had moved the Supreme Court with a prayer to transfer the cases being heard against Naidu to a court outside Andhra Pradesh fearing that justice may not be done owing to his influential position in the state. Vijayamma had originally filed a petition before the AP high court against Naidu alleging corruption and assets being acquired disproportionate to his known source of income.
However she felt that justice would not be done and hence sought transfer of the case. The Supreme Court however remarked that it was not right to doubt the intergrity of any court. Vijayamma decided to withdraw the petition seeking transfer of the case. She will now continue fighting the case before the AP high court following which she would prefer an appeal if the need arises.

The case against Chandrababu Naidu

Chandrababu Naidu is a worried man today. As the Central Bureau of Investigation readies itself to start a probe against Naidu in connection with the disproportionate assets against him, the man himself is exploring legal options and plans on challenging the probe in the Supreme Court of India.

The Andhra Pradesh High Court had ordered a probe by the CBI against him yesterday based on a petition filed by wife of Late Dr Y S Rajasekara Reddy. Naidu however has a tough task ahead of him in case the CBI starts its questioning. More importantly this order has thrown the battle in the open between Jagan Mohan Reddy and Naidu who have been at logger heads trying to expose each other.

The petition against Naidu delves into various details regarding the manner in which he alleged made his money. It is alleged that he comes from a lower middle class family from Chittoor district and it is stated that he entered into politics immediately after he completed his college. Hence there is no real record to show the income he had earned as his only source of income was his political career.

Terming him as the biggest betrayer for overthrowing his father in law, N T Rama Rao out of power, the petition against him states that he went on to earn riches through illegal means.

As per his own declaration he has inherited 2 Acres of agricultural land from his ancestral property by virtue of family partition before 1986 situated in his native village of Naravaripalle in Chittoor District. In an affidavit that was filed by after his family partitioned the property in 1986, it is averred by him that he sold his share of the land and bought lands in Nindali and Vakhyam villages of Nellore, from which his income was declared by him to be Rs.36,000 per annum.

The spree of amassing property by him appears to have commenced in Nellore District. He purchased 65 acres of agricultural land through his family members at a low rate of about Rs.1000 per acre in 1985. Soon thereafter, a further 250 acres were purchased benami by him.

The sources of funds for the initial 65 acres, and the latter 250 acres are the same, The entire area of 315 acres, in a single stretch encircled by a single farm compound with a fence that runs 12 kilometers in one long stretch.

On 25.08.2001, 4 transactions of large lands in these tracts took place involving Naidu and his son Lokesh, of which were gifts, and 2 were sales. Such a large number of transactions to and fro are clearly suspicious and lend confirmation to the fact that benami transactions were abounding.

As Chief Minister of the State,.Naidu made the declaration of his assets in 1999, it showed the value of about Rs.7.83 crores, a massive and inexplicable leap, keeping in view that his agricultural income had been declared only 10 years earlier as being Rs.36,000 per annum, and his income as an MLA was Rs.650/- per month and as Director of Heritage Foods was Rs.20,000/- per month. The acquisitions in property, which is arithmetically a few times over and above the earlier possessions, in the shortest

possible span of business time and equal time spent in political pursuits by the family, clearly indicate that the sources of income which enabled such acquisition of assets are clearly illegitimate and defy an alibi of natural course of events. The possessions of the family continue earned and held during the period of time, continue the line adopted hitherto.

In addition to this the CBI would also probe the benami transaction which was allegedly undertaken in the name of his mother apart from the various properties that are found in the name of his wife.

Investigation also needs to be carried out as far as Naidu’s mother Ammanamma’s transactions are concerned. Admittedly, the only property that she inherited was 2 acres from Naidu’s maternal and parents in Kuppam village. However, in 2000, she purchased 5 acres of land in Sy. No. 59 of Madinaguda Village of Hyderabad, from one Jasti Panduranga Vittal near Hitec City for Rs.40 lakhs and also a plot of 1,135 sq.yds. in the upmarket Banjara Hills area ofHyderabadfor Rs. 35 lakhs.

Other investments and assets of. Naidu and his family

On 19-10-1994, at the time of publication of prospectus of Heritage Foods India Ltd., Naidu as Managing Director has declared that he is not associated with any industry or business activity. But at that time, Naidu promoted M/s. Bhuvaneswari Carbides and Chemicals Pvt. Ltd., and

Bhuvaneswari Carbides and Alloys Pvt. Ltd., Both these units have borrowed from the banks and financial institutions, this fact was concealed in the prospectus deliberately.

It is pertinent to note that the investment made by Bhuvaneswari (wife) and Lokesh in the year 1999-2000 continued ill today in M/s. A 2 Z E multisoft Pvt.Ltd later changed the name as M/s Bizpro Technologies Pvt.Ltd, has not been declared in statement of assets and liabilities submitted to the Election Commission of India and State Legislature of Andhra Pradesh, a perjury liable for prosecution.

It is a mystery as to how.Chandrababu Naidu could promote a posh Three Star hotel in the most expensive area of Tirupati immediately after joining TDP in 1983. Nobody knows how he could mobilize the equity. He later sold this property to another TDP functionary, who was later made Kadapa ZP Chairman.

Rama Agricultural Farms

In 1989, a family firm called Rama Agricultural Farms consisting of Naidu’s mother, wife, son and a relative of them named P.Dasaiah Naidu purchased 3.276 acres of land in Kondapur, at a distance of only half a kilometer from Hitec City, for Rs. 1,00,000 at a rate of Rs.30,487 per acre. The sources of these funds remain unknown.

In 1996, an announcement is made by the Government headed by Naidu that an Infotech park called Hitec Citywould be established in the area abutting Kondapur. With this announcement, the value of the land held by Rama Agricultural Farms multiplies, providing substantial pecuniary benefit to the holders of the land.

On 4.4.1998, a company named Dr.Reddy’s Laboratories gets a sales tax deferment of Rs.25 crores for 14 years from the State Government headed by Naidu. This itself is questionable as such exemption is given only to a new industry/Unit. Dr.Reddy’s was founded in 1984, and is an established, listed company on both the NSE and the NYSE with revenues of $1.67 billion.

Naidu who was the pivotal policy maker of the State when he was the Chief Minister selectively leaked the policy formulations of the State in advance for the benefit of individuals and private entities who are related to him. The site and location of infrastructural projects envisaged or potential sites for such development was leaked out to the firms and entities owned and promoted by Ramoji Rao, Maganti Murali Mohan of Jayabheri Properties and the location and the extents of lands owned by the above named individuals/entitites and several others are the direct evidences in this regard. All such favours need to be examined and misuse of power amounting to loss of hundreds of crores of rupees to the innocent farmers and land owners ought to be suitably redressed.

Krishna Godavari (KG)Basin

The Krishna-Godavari basin is home to one of the most lucrative gas deposits in the world, as was discovered in 2002, and estimated to be almost 40 times that of the Bombay High basin. While the basin is located in the State ofAndhra Pradesh, the Government under Naidu chose to turn an obliging blind eye to its rights to the discovery on its soil, while allowing Naidu’s close associate Ramoji Rao to be the vehicle of the quid pro quo. In fact, there was also a note/letter to Naidu by the senior officers of the Government cautioning him that the State ofAP should also bid for the gas by forming a company like Gujarat had done. This piece of advice was wholly ignored by Naidu. In the process of exploring gas reserves in KG basin, Reliance industries indulged in many violations by hindering fishermen and polluting large extent of waters which caused unaccountable damage to environment and marine life.

Ramoji Rao’s company Margadarsi Financiers had fallen on hard times in the year 2007 when its irregularities and violations became public. Subsequently a committee of enquiry was constituted by Govt. of AP which revealed that Rs.2,600 crores of money was collected from public by violating Reserve Bank of Indianorms and regulations and it was declared that it was impossible for the company to repay its several depositors.

Despite the fact that almost all of Rao’s companies were in severe financial difficulties, Rao surprisingly offered through the news media to repay the full amount of Rs.2600 crores due to the depositors. This was followed by an assurance by him to thisHon’ble Courtfollowing which the amount due was repaid. A large portion of amount of so called deposits accounting to nearly Rs.275 Cr was declared as unclaimed initially.

In consideration for the favour done by the Respondent No. 8 in allowing the State’s K.G.Basin claim to be brushed under the carpet, the Reliance group facilitated the payout of Ramoji Rao’s debts to his depositors. This was carried out through known associates and friends of Mukesh Ambani.

Two of these known associates of Ambani and the Reliance Group are Nimesh Kampani and Vinay Chajlani.

Kampani extended himself in ensuring that Ramoji Rao would be bailed out. Within a short span of 37 days between December 2007 and January 2008, six “shell companies” were floated on three addresses, which are shown as Sriram Mills Compound, Worli, which is the official address

of Reliance Industries Limited. Reliance diverted Rs.2604 crores of its shareholders money through the shell companies to Ms.Kampani’s Equator Trading India Limited and.Chajlani’s Anu Trading.

The Shamshabad Airport

Between 1997 to 2001, in Palmakole village just adjoining Shamshabad, Margadarsi Chit fund private limited (a company in which Ramoji Rao and his family members were partners), along with many of Ramoji Rao’s employees with as low income as Rs.10,000/- p.m. bought a huge extent of 360 acres of land, when the market value was just Rs.50,000/-. As agricultural land ceiling was in existence, it was not possible for a single individual to hold large tracts of this land. Rao bankrolled the transactions entered into by his employees in order to facilitate this single piece of land to be transferred.

The fact that this land was purchased at ten times its market price ought to have been enough to arouse the suspicion of the authorities. Shortly after the purchase, Naidu directed the Government to grant permissions to the benami holders to convert their land to non-agricultural purposes, thereby avoiding the application of the ceiling law in regard to agricultural holdings.

Immediate upon conversion, all the various pieces of land were sold to Ramoji Rao at almost the same price1. For example, there were as many as 10 transactions in the name of Kolli Bapineedu Choudhary (now Vice President of Ramoji Film City), but not a single land stands in his name now.

Hitech City

In 1996, one. Maganti Murali Mohan of Jayabheri Properties / MM Financiers purchased 2.34 acres in thevillageofGachchibowli. These purchases were made for a total consideration of Rs.10 lakh. Murali Mohan is a close friend and associate of Naidu, who was then the Chief Minister of the State. Shortly thereafter, Naidu announced the Hitec City Project, which was to be coincidentally located in the villages of Kondapur, Gachchibowli and Madhapur.

Immediately thereafter, the prices of the lands in those villages rose dramatically, which was taken advantage by Murali Mohan who entered into several Development Agreements (8 projects) between 1996 and 1997 aroundHitecCity. Naidu showcaused the internationally reputed IT/Software/ ITES companies by allotting approximately 1/3rd of 645 Acres in Sy.No.65 of Madhapur area fuelling escalation in real estate prices and grabbed the rest of 2/3rd land through a slew of fictitious / benami paper companies at his behest. The very fact that most of these companies were Non IT/ software objective based companies and very few of them just start up Software companies incorporated with the sole intention of getting the land and other tax benefits from Government of Andhra Pradesh lends credence to the fact that Naidu benefited from the same. In all these allotments, Naidu either received illegal gratification in the form of cash or end beneficiary through Maganti Murali Mohan and others. For instance, companies floated by one Sri.Valluripalli Nagarjun in several names like Valluripalli Agrotech and Arjun Computers and Software got the lands from the government agencies for throw away prices. After getting allotment, some of the said companies transferred the lands to Murali Mohan and his group companies.