ED attaches Jagan Mohan Reddy’s properties - The New Indian Express

ED attaches Jagan Mohan Reddy’s properties

Published: 05th October 2012 01:08 PM

Last Updated: 05th October 2012 01:08 PM

Stepping up the heat on jailed Kadapa MP YS Jagan Mohan Reddy, the Enforcement Directorate on Thursday attached properties worth Rs 51 crore belonging to him as well as a few of the companies named as accused in the alleged disproportionate assets case involving Jagan.

The move, which seems to be an indication that more bad news could be in store for the young MP, comes just a day before Jagan’s bail petition is to be heard by the Supreme Court on Friday.

According to ED officials, the properties attached are approximately 35 acres of land and fixed deposit of Rs 3 crore of M/s Hetero Drugs limited, 96 acres of land of M/s APL Research Centre Limited (100 per cent subsidiary of Aurobindo Pharma Limited), Rs 3 crore fixed deposit in the name of Aurobindo Pharma, more than 13 acres of land of Janani Infrastructure and fixed deposit to the tune of Rs 14.50 crore of Jagati Publications Private Limited.

The immovable and movable assets were attached under section 5 (1) of the Prevention of Money Laundering Act (PMLA). “Further investigation under PMLA is being carried out,” ED officials said.

Officials said the investigation had revealed that Hetero Drugs Ltd and Aurobindo Pharma had illegally gained `8.60 crore each when they were each allotted 75 acres of land by the state government.

M/s Trident Life Sciences was illegally benefited by Rs 4.30 crore in the allotment of 30.33 acre land. “These allotments were done illegally by the state government at a lower rate than the rate fixed by the price fixation committee,” the ED said.

In lieu of these favours, a sum of Rs 14.50 crore was paid to Jagati Publications and Rs 15 crore to Janani Infrastructure, both companies owned by Jagan, the officials said. “These payments to Jagan’s companies were made in the form of equity contribution which was, in fact, a kickback for the favours done by the then state government,” they added.

Ever since the Central Bureau of Investigation (CBI) had registered a case against Jagan and 73 others in the alleged disproportionate assets case, the ED has been conducting its own investigation.

The allegation against Jagan Reddy was that since May 2004, when his father YS Rajasekhara Reddy was the chief minister, he floated a number of companies wherein quid-pro-quo investments were made by beneficiaries from the decisions made by the government.

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