HYDERABAD: The Telangana High Court on Thursday reserved its orders on a petition filed by former Industries Secretary Y Srilakshmi seeking quashing of a CBI case registered against her in the alleged quid pro quo investment case linked to companies owned by YS Jagan Mohan Reddy.
During the hearing, the CBI informed the court that it had collected substantial material to proceed against Srilakshmi, alleging misuse of official position to extend undue favours to Penna Cements owned by Pratap Reddy, a close associate of late chief minister YS Rajasekhar Reddy.
The agency cited several alleged irregularities, including the allotment of 231 acres of land in Yadiki of Anantapur district, grant of a prospecting lease over 304.70 hectares in Kaulapalli of Kurnool district, renewal of mining leases over 82,213 acres in Tandur of Rangareddy district, and concessions extended for the construction of Pioneer Hotels in Hyderabad.
The CBI further submitted that Pratap Reddy had invested about Rs 68 crore in companies linked to Jagan as quid pro quo for the favours received.
Opposing the quash plea, CBI Special Counsel Srinivas Kapatia argued that Srilakshmi had earlier challenged the cognizance orders of the CBI court but withdrew her petition after the arguments were completed and orders were reserved.
Senior advocate K Vivek Reddy, appearing for Srilakshmi, submitted that the withdrawal was duly placed on record before the trial court. He further argued that the prosecution sanction had been obtained only under the Prevention of Corruption Act and not under the IPC provisions invoked in the case. The matter was adjourned to December 11 for the pronouncement of orders.