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Court Summons to Jagan, Vijay Sai Reddy in Illegal Assets Case

The court took cognizance of ED charge sheet and summoned them to appear in court on May 2.

Published: 07th April 2015 06:04 AM  |   Last Updated: 07th April 2015 07:53 AM   |  A+A-

Jagan-Mohan-Reddy

HYDERABAD: A local court on Monday summoned YSRC president Y S Jagan Mohan Reddy and two others to appear before it on May 2 in connection with his alleged illegal assets case.

The court took cognizance of the chargesheet filed by the Enforcement Directorate and summoned the three accused, Jagan, Vijay Sai Reddy and Jagathi Publications.

The ED, in its chargesheet, alleged that Jagan and his auditor Vijay Sai Reddy brought investments into Jagathi Publications by using the influence of the late Y S Rajasekhara Reddy. The ED also found some violations in bringing investments into the Jagathi Publications.

Jagan.PNGIt submitted that the investigation carried out under the Prevention of Money Laundering Act (PMLA) revealed that Vijay Sai Reddy, Harish C Kamarthy and Jagan are the initial subscribers of the company incorporated as private limited company on Nov 14, 2006. Though they converted it into a public limited company from Jan 12, 2009, it was never a listed company. Vijay Sai Reddy and Jagan were the directors from Nov l4, 2006 to Feb 01, 2011.

The first annual report of M/s JPPL for the year 2006-07 inter-alia states that JPPL has raised share capital of Rs 50.04 crores by way of allotting shares at the rate of Rs 10 per share before the commencement of its commercial operations. The second annual report for the year 2007-08 states that the company had allotted 31872201 equity shares of Rs 10 each at a premium during this year. An amount of Rs 324.02 crores including premium of Rs 292.15 crores was received by the company by way of private placement of equity shares. The accumulated loss as on March 31, 2008 was Rs 7.23 crores approximately. It is also mentioned that the company has launched a Telugu daily newspaper on March 24, 2008 in the name of ‘SAKSHI’, the ED said.

The ED urged the court to take cognizance of the complaint on file and proceed against the accused for the offence of Money Laundering and issue summons to them and punish them in accordance with law. It also sought to confiscate the properties involved in money laundering.

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