Ed names YS Jagan Mohan Reddy, in graft case
Hyderabad: The enforcement directorate, which is probing the cases relating to alleged illegal investments made by YSR Congress chief Y.S. Jagan Mohan Reddy, has filed a prosecution complaint in the Special CBI court hearing ED cases.
In its complaint, the directorate named Mr Jagan Mohan Reddy as an accused under the sections of the Prevention of Money Laundering Act in a case related to investments made by Penna Group in Mr Jagan Mohan Reddy’s companies.
Along with the YSRC chief, Rajya Sabha MP V. Vijayasai Reddy and Penna Group chairman Putta Pratap Reddy, Pioneer Holdings and Penna Cements were also named as accused in the complaint.
Taking note of Charge Sheet No. VIII filed by the CBI, the enforcement directorate stated in its compliant that during the government of former AP chief minister Y.S. Rajashekar Reddy, 231.09 acres of assigned land in Yadiki mandal in Anantapur district was allotted for setting up of a cement factory. The directorate further said that the land allotment had violated necessary guidelines and the land was forcefully acquired from farmers.
Similarly, the directorate said the government had rejected an application made by Ultratech Cement Limited for a mining lease at Moorgula in Kurnool district, but the same was allotted to Penna Cements through prospecting lease process. It said the rules were flouted in awarding this contract to Penna Cements.
According to the directorate, there were also violations in reviving the cancelled lease related to 822.13 acres land at Tandur in Ranga Reddy district. The directorate had also stated that the subsidies given for the construction of Pioneer Hotel at Banjara Hills was also a violation of rules.
In exchange to all these ‘favours’, Penna Cements has invested Rs 68 crores in the companies owned by Jagan Mohan Reddy, thereby attracting provisions of the Prevention of Money Laundering Act.