From being worth Rs36 lakh in 2003-04, the Kadapa MP YS Jagan Mohan Reddy emerged to become the richest MP with an asset base of Rs365 crore for himself and another Rs40 crore for his wife Bharathi by 2011. According to the I-T returns of Jagan in 2003-04 his declared assets were worth Rs36 lakh. In the following year, his assets were at Rs6.6 crore. However, according to an affidavit filed by him in 2011, his assets were at Rs365 crore. Between 2003 and 2010, Jagan floated at least 36 companies to expand his business empire supporting the exponential growth in his wealth. However, the CBI has alleged that most of the funds that have come into Jagan’s accounts were routed through a quid pro quo arrangement with the industrialists and at least 22 firms were floated to be briefcase companies only to make use of them to route the illegally gotten monies.
BS Yeddyurappa (left) and Jagan Mohan Reddy
In August 2011 the CBI initiated a probe into the allegations of Jagan amassing wealth during his father’s regime after the high court ordered the enquiry in response to a public interest litigation filed by a senior Congress leader Shankar Rao. Since then, the CBI has been working on various leads and arrested four persons in this connection.
Jagan is accused of influencing the investors coming to the state seeking land for setting up of the projects or allotment of mines to invest in his business in lieu of incentives by the government led by his father. The opposition parties have been accusing Jagan of amassing about Rs one lakh crore by using the quid pro quo method.
Jaganmohan meets interim K Rosaiah in Hyderabad on September 6, 2009
The CBI probed the sources of funds into Jagan’s businesses including Jagati Publications, which owns Sakshi Telugu newspaper, Indira TV, which owns Sakshi TV, and Sandur Power, a company incorporated for setting up of power projects.
In the cases of Jagati Publications and Indira TV, Nimmagadda Prasad was a key investor and is estimated to have pumped in about Rs800 crore. The CBI alleged that Prasad was allotted about 15,000 acres on the east coast for setting of two ports and an industrial corridor through his company Vanpic.
The logo of Sakshi (media group)
Former minister M Venkata Ramana, who is in the CBI custody now, was found to be the key participant in bridging the relation between Jagan’s businesses and Vanpic by issuing at least three GOs favouring to Vanpic including exemption from payment of stamp duty and registration charges for thousands of acres of land Vanpic would acquire from farmers for setting up of the ports and related infrastructure.
The CBI charge sheets have also named several industrial entities including pharma major Aurobindo Pharma and infrastructure major Ramky for participating in the quid pro quo arrangement, though no representative of these companies have been arrested.
Third time not lucky
Jagan came to the CBI camp office at about 10.30 am on Sunday for questioning on the third consecutive day. Like earlier two days, Jagan was expected to go home by 6 pm. However, with the controversial MP not coming out, it was more or less confirmed that he was arrested.
Ahead of the arrest, a team of CBI officials from Delhi including the legal team was said to be camping in Hyderabad to handle the formalities.
At about 6.30 pm, the CBI joint director VV Laxminarayana, who questioned Jagan for last three days, went to the hotel where the CBI team was camping to take further instruction. Following that, key leaders and family members of Jagan were informed about the arrest. Jagan’s wife, brother-in-law and evangelist Anil, mother and YSR Congress Party MLA YS Vijaya and uncle YV Subba Reddy reached the CBI office at around 7.20 pm and it was then the speculation about arrest was confirmed by the party leaders.
BS Yeddyurappa and Jagan Mohan Reddy
Under scanner since 2011
2009
April: Jagan wins maiden election from Kadapa Lok Sabha constituency as Congress candidate
Sept: Jagan’s father and AP CM YSR Reddy dies in helicopter crash
2010
Nov: Jagan quits Congress protesting the party high command’s opposition to his plan to tour the state to console father’s supporters
Dec: Declares intention to float a new political party
2011
March: Announces new party- YSR Congress with his mother and YSR’s widow Vijaya honorary chairperson
August 10: Andhra Pradesh HC orders CBI enquiry on allegations of Jagan amassing wealth in a quid pro quo arrangement with industrialists
August 17: The CBI files an FIR naming Jagan and YSR for misusing powers and government for amassing wealth
2012
March 31: CBI files first chargesheet naming Jagan as accused no. 1
May 25: Jagan appears before the CBI for the first time for questioning
May 27: Jagan arrested by the CBI in the disproportionate assets case
In the pic: Former Andhra Pradesh chief minister, YS Rajasekhara Reddy (father of Jagan Reddy)
Thanks to DNA