CBI begins searches in illegal assets of YS Jaganmohan Reddy

Central Bureau of Investigation (CBI) on Thursday registered an FIR against YSR Congress chief Jagan Mohan Reddy. CBI conducted searches in five cities including Hyderabad, Bangalore, Chennai, Kolkata and Mumbai in connection with disproportionate assets case against Jagan Mohan Reddy.

A team of 11 CBI officers started searching at the palatial residence of Jagan at Lotus Pond at Banjara Hills. Simultaneous search was also on at the residence of Prasad in Sainikpuri.

The first search began early in the day at the residence of Acharya in Mahindra Hills here. He was managing director of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) when Dubai-based Emaar allegedly committed irregularities in developing a township project here.

CBI also conducted searches at Sakshi News Channel office, Jagan's residence at Banjara hills and his Bharti Cement office in Hyberabad.

Earlier the High Court directed the CBI to undertake a detailed investigation into Jagan's assets.

Prasad of Matrix Lab is one of the investors who pumped in big money in Jagan's businesses allegedly in a quid pro quo arrangement in return for the benefits they received from his father when he was chief minister.

The petitioners, including a minister belonging to Congress party and leaders of opposition Telugu Desam Party, alleged that Jagan amassed huge wealth by misusing power when his father was chief minister from 2004 to 2009.

During the by-polls to Kadapa Lok Sabha seat in May this year, Jagan had declared assets of Rs.365 crore, making him the richest MP in the country. In 2009 elections, he was worth Rs.77 crore.

Textiles Minister P. Shankar Rao, on whose letter last year the court took up hearing, claims Jagan was worth Rs.11 lakh prior to 2004 but now has assets worth Rs.43,000 crore.

The high court last week directed full-fledged probe against him and also in the alleged scam in Emaar project. The CBI earlier conducted preliminary investigations in both the cases and submitted its reports to the court.

Jagan Mohan Reddy meanwhile has approached the Supreme Court against the High Court's decision and has called it a political witch hunt by the Congress.

Andhra: Jagan to move SC today

YSR Congress president and Kadapa Lok Sabha member YS Jagan Mohan Reddy will move the Supreme Court on Tuesday against the High Court order which directed the CBI to investigate his wealth.

According to report, he maintained that there were no irregularities in the investments made into his companies Jagati Publications or Bharati Cements.

“All those who had invested made a lot of money. It was India Cements, Dalmia Cements, his friend N Prasad (Matrix Laboratories) and French cement biggie Vicat who had invested in Bharati Cements and made a lot of money in the bargain,”

He said, substantiating his argument that the investments made in his companies were not a gesture of thanksgiving to YS Rajasekhara Reddy by those who had received government land. “India Cements and Dalmia Cements had invested about 95 crore each and made ut po Rs 150 crore each. Similarly, Prasad had invested Rs 265 crore and made Rs 550 crore.”

Reddy said the direction given by the High Court for a CBI probe into his assets should be viewed as part of the Congress game plan to single him out and tarnish his image. “God is there. He will protect me,” he said.

Jagan said that after he had left the Congress, the party leaders had been trying to isolate him and tarnish his image.