ED Attaches Rs 749 Crore Assets Of YSR Chief Jagan Mohan Reddy And His Wife

29/06/2016 11:18 PM IST | Updated 15/07/2016 8:27 AM IST
Krishnendu Halder / Reuters
Jagan Mohan Reddy, the leader of YSR Congress party speaks during an interview with Reuters at his residence in the southern Indian city of Hyderabad October 16, 2013. When Jagan Mohan Reddy finally emerged from 16 months behind bars in southern India in September, the adoring crowd that greeted the young politician was so enormous that it took him six hours to drive the 11 km (7 miles) to his home. The scene underscored Reddy's growing popularity - despite a thicket of corruption scandals around him - and it served as a rude reminder to national leaders up north in New Delhi that regional party bosses like Reddy will hold the key to power after elections next year. Both the ruling Congress party and the main opposition Bharatiya Janata Party (BJP) are expected to fall short of a majority in the election, which means India may be heading for a coalition government dependent on regional parties. Picture taken October 16, 2013. REUTERS/Krishnendu Halder (INDIA - Tags: POLITICS)

Enforcement Directorate on Wednesday attached properties worth Rs 749.10 crore belonging to YSR Congress chief Y S Jagan Mohan Reddy and his wife Y S Bharathi Reddy in connection with its probe in a money laundering case.

The agency launched the investigations on the basis of a charge sheet filed by the CBI accusing Jagan, son of then Andhra Pradesh Chief Minister YS Rajasekhar Reddy, of entering into a criminal conspiracy with others to get a mining lease allotted to M/s Bharathi Cement Corporation Private Ltd of which Bharathi is the chairman.

Jagan received bribes from various persons/companies in the guise of investments in his group companies as a quid pro quo for undue favours granted to them by the Andhra Pradesh government, the ED said in a statement here.

A case of laundering was registered against Jagan and others by ED's Hyderabad zonal office under the Prevention of Money Laundering Act (PMLA), 2002.

ED said its investigations under PMLA revealed that Jagan laundered the proceeds of crime through his group companies M/s Sandur Power Company Pvt Ltd, M/S Classic Realty Pvt Ltd, M/s Silicon Builders Pvt Ltd, M/s Saraswati Power and Industries Pvt Ltd and 10 other firms in the form of investments, purchase of movable and immovable properties, third party payments, etc.

Apart from it, M/s Bharathi Cement Corporation Pvt Ltd has received the proceeds of crime in the form of limestone mined from the mines allotted illegally to them in Kadapa district by then AP government. The value of limestone works out to be more than Rs 152 crore during the relevant period, it said.

"During investigation under PMLA, the proceeds of crime involved in money laundering were identified in the form of movable (Rs 404,72,32,182) and immovable properties (Rs 344,38,10,378) totally valued at Rs 749.10 crore," ED Joint Director (Hyderabad Zone) S A Umashanker Goud said.

The attached properties are spread across Telangana, Andhra Pradesh and Karnataka.

In the past, the agency had attached properties worth several hundreds of crores belonging to Jagan and others.

CBI had filed 11 chargesheets against Jagan and others pertaining to the alleged investments made by various private firms and individuals to the tune of several crores in his businesse. The agency said this was part of quid pro quo arrangement in exchange for alleged favours by the erstwhile Rajasekhar Reddy government.

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