HYDERABAD: In a major relief to Andhra Pradesh Chief Minister YS Jagan Mohan Reddy, the Appellate Tribunal for Prevention of Money Laundering Act (PMLA) has directed the Enforcement Directorate (ED), to release the assets of Jagan Mohan Reddy and his wife YS Bharathi Reddy that was attached by the agency in a money laundering case. The tribunal opined that the action was taken in haste and without due diligence, indicating serious loopholes in the probe. This decision comes two months after Jagan Mohan Reddy took charge as the Chief Minister of Andhra Pradesh.
The attachment assets at a total worth of Rs 746 by ED, include Rs 569 crore of Jagan and group, Rs 22.31 crore of Bharathi Reddy and Rs 154 crore of Bharathi Cements Corporation Private Limited (BCCL). The tribunal while mentioning lacunae on the agency’s part to attach the salary amount earned by Bharathi Reddy, terming it as proceeds of crime, also questioned its move to attach bonafide business transactions of Jagan Mohan Reddy.
After the CBI registered a case against Jagan in 2011, ED also registered a case against him, his wife and their associate companies. ED alleged that Jagan got a mining lease wrongfully awarded in favour of Bharathi Cement Corporation Pvt. Ltd. through a criminal conspiracy with public officials. ED also alleged investments made in the companies linked to Jagan by various other entities was proceeds of crime.
Tribunal pointed out that ED had undervalued immovable assets in a bid to attach the maximum number of properties and flagged cases of double attachments regarding Sandur Power, Classic Reality and Saraswati Power in the case. The tribunal directed that one attachment of Rs 192 crore should be released on the condition of submission of bank guarantee of a similar amount in favour of ED till the time final orders are passed in the matter. The other attachments should also be released, it said.