Jagan Mohan Reddy disproportionate assets case: ED attaches Rs 216-crore

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Hyderabad | Updated: March 28, 2015 11:57 AM

ED and CBI accuses a private firm of receiving undue benefits by a media firm owned by Jagan...

Source: PTIYSR Congress leader Y S Jagan Mohan Reddy (Source: PTI)

Enforcement Directorate (ED) on Friday attached assets worth over Rs 216 crore of Andhra Pradesh-based infrastructure group, in connection with its money laundering probe into alleged disproportionate assets of YSR Congress leader Y S Jagan Mohan Reddy.

The case pertains to Ms Ramky Pharma City India Limited (RPCIL), which has been accused by CBI and ED of getting “undue benefit of 914 acres of land in Jawaharlal Nehru Pharma City, Vishakhapatnam, by reducing green belt area from 250 metres to 50 metres”, for which it allegedly paid kickbacks “worth Rs 10 crore in share capital of Ms Jagati Publications Pvt Limited”, a media firm owned by Jagan.

“Out of 914 acres, RPCIL converted 627 acres into industrial plots and sold/leased out plots in 468 acres to different pharma companies,” ED said in its attachment order issued.

It said these sub-contracts were in alleged violation of the original contract inked with the state government, and hence, invites charges under Prevention of Money Laundering Act (PMLA).

The assets, which have been attached in the latest order, under PMLA, involves various plots and land pieces of the firm in Andhra Pradesh, and Rs 10 crore share capital funds of the accused media firm.

“The total value of the assets is Rs 216.18 crore,” the order said.

ED had based its investigation in this case on the FIR and chargesheet filed by CBI against Jagan, his associates and others, alleging that the accused made money by benefiting from the decisions of the state government in various forms. The government decisions pertained to SEZs, irrigation contracts, relaxation and permissions for real estate ventures, mining contracts among others.

When the contracts were awarded, Jagan’s father, late Y S Rajasekhara Reddy, was Chief Minister, and both the agencies have said in their respective complaints that there existed an alleged “quid-pro-quo” in all these deals.

The agency, which filed a money laundering case in 2010 to probe these charges, had in 2013 attached Rs 135 crore of assets of the same business group.

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