NEW DELHI: Enforcement Directorate attached properties worth Rs 749.10 crore on Monday belonging to YSR Congress president Y S Jagan Mohan Reddy and his wife Y S Bharathi Reddy in connection with its probe in a money laundering case.
The agency had started probe on the basis of a charge sheet filed by the Central Bureau of Investigation wherein Jagan, son of then Andhra Pradesh Chief Minister YS Rajasekhar Reddy, is accused of entering into a criminal conspiracy with others to get a mining lease allotted to Bharathi Cement Corporation Private Ltd of which his wife is the chairman.
The attached properties include real estate and fixed assets of various companies worth Rs 344.38 crore and movable properties including shares and fixed deposits valued at Rs 404.72 crore totaling Rs 749.10 Crore.
“Jagan received bribes from various persons/companies in the guise of investments in his group companies as a quid pro quo for undue favours granted to them by the Andhra Pradesh government,” the ED issued a statement.
The agency further stated that the probe so far revealed that Jagan received various investments in his companies after 2004 when his father Rajasekhar Reddy became the Chief Minister of State of Andhra Pradesh.
Bharathi Cement Corporation Private Limited which did not have any major investments other than those invested by Jagan Mohan Reddy and his associates till 2007 received huge funds from companies of Nimmagadda Prasad of VANPIC Group companies based in Hyderabad and others during the period between June, 2007 and April, 2010 with huge and unsubstantiated premium as quid pro quo, amounting to Rs 442.82 Crore.
“Jagan with Rs 35 crore taken from Nimmagadda Prasad purchased shares of Bharathi Cement Corporation Private Limited at par value of Rs 10 each. He got investment from Nimmagadda Prasad and others with unsubstantiated premium and constructed the cement plant,” the agency alleged.
He also took loans by concealing facts from Oriental Bank of Commerce and also got the mining license fraudulently in the name of his company. Bharathi Cement Corporation Private Limited also received lime stone, which is mined from the mines allotted illegally to them in Kadapa District, by the then government of Andhra Pradesh. The value of lime stone works out to more than Rs 152 crore during the relevant period is also the proceeds of crime.
Thereafter, he sold the shares of Bharathi Cement Corporation Private Limited to Parficim S.A.S, France at the rate Rs 671.20 per each share and obtained wrongful gain of Rs 416.20 crore apart from retaining 49 percent of shares either directly or in the name of his group company Silicon Builders Private Limited and appointed his wife Bharathi as Chairman of Bharathi Cement Corporation Private Limited.
She has been drawing huge remuneration as Chairman of the company.
“The sale proceeds was laundered through his group companies Sandur Power Corporation Private Limited, Classic Realty Private Limited, Silicon Builders Private Limited, Saraswati Power and Industries Private Limited, s Nivish Infrastructure Private Limited, Shalom Infrastructure Private Limited, Capstone Infrastructure Private Limited, Utopia Infrastructure Private Limited, Harish Infrastructure Private Limited, Marvel Infrastructure Private Limited, Silicon Infrastructure Private Limited, Revan Infra Private Limited, Inspire Hotels Private Limited and Bhagavath Sannidhi Estates Private Limited,” the agency said.
The agency alleged that he also used the proceeds of sale of shares Bharathi Cement Corporation Private Limited for various investments in other companies, construction of buildings, purchase of lands, at various places in Andhra Pradesh, Telangana and Karnataka.
He also utilised the Proceeds of Crime to clear old debts which were taken for the purpose of acquiring assets in the name of his group companies. He also transferred huge funds to his wife who also utilised the funds for investments, third party clearances.
“Jagan is receiving huge amounts as dividends from Bharathi Cement Corporation Private Limited, for his 49 percent holding continuously. All these shares are attached now at acquisition cost Rs 38.80 Crore,” the agency said.
Earlier four attachment orders have been issued in the case for assets worth Rs 1775 Crores. This fifth Provisional Attachment Order brings total assets worth Rs 2524.10 crore under attachment in this case.