Hyderabad: The CBI has informed the Hyderabad HC that the management of the Penna Group had violated several laws for securing public assets like land and limestone mines and other benefits from the erstwhile AP government.
The CBI claim was contained in a counter-affidavit it filed with the High Court to oppose the discharge petitions of Penna Cement Industries Ltd., PR Energy Holding Ltd, Pioneer Holiday Resorts Ltd and Penna Tandur Cement Company Ltd questioning the chargesheet filed against them in the illegal investments case of YSRC president Y.S. Jagan Mohan Reddy.
CBI DIG V. Chandrasekhar said there was ample evidence to prove that the benefits availed by these companies from the Y.S. Rajasekhar Reddy government and the investments they made in Jagan Mohan Reddy’s companies were part of a quid pro quo arrangement.
He said that the process of allotment began only after Pioneer Infra invested Rs 20 crore in Jagathi Publications owned by Jagan on December 3, 2007, and Mr Penna Pratap Reddy giving a representation to then CM Y.S. Rajasekhar Reddy seeking allotment of 237 acres in Yadiki mandal of Anantapur district.
The company invested another Rs 10 crore in Jagan’s firms after which the government had released a GO allotting land to the Penna Group.
The counter-affidavit stated that several officials deposed before the CBI about the forcible manner in which this land was taken away and the dubious role played by a mandal revenue officer.
The CBI told the court that irregularities took place in the allotment of lease of 304 hectares of limestone mine in Kurnool district and the restoration of cancelled limestone mining leases of 822 acres in Tandur.
Several concessions were given to the five star hotel project of the Penna Group in Banjara Hills of the city.
