Hyderabad: The Enforcement Directorate (ED) on Thursday submitted that it had substantial evidence about money laundering by Mr N. Srinivasan and his India Cements in companies owned by Y.S. Jagan Mohan Reddy. The ED appealed to Telangana High Court not to allow the plea of Srinivasan, in which he sought quashing of cases filed by ED under several sections of the Prevention of Money Laundering Act (PMLA).
After Mr Srinivasan contended that he was unaware of investment in Bharati Cements Ltd, Jagathi Publications and other companies of Y.S. Jagan, ED had filed counter affidavit before the Telangana High Court. It pointed out to investments to the tune of Rs 140 crore, made by India Cements Ltd in Jagan’s companies at a exorbitant premiums of up to 1300 percentage more than the actual rate of premiums per share of those companies.
“The India Cements Ltd, which is also in cement manufacture industry for 70 years, invested the amount in Bharati Cements, which had not yet commenced its operations, at a premium of Rs 110 per share in 2007. Within 10 months it also invested more at a premium of Rs 1440 per share, whereas the share price of India Cements slumped by 45 percent from Rs 270 to Rs 145”, the ED said.
Elaborating the investments made in Jagathi Publications, which never gained profits, and in Caramel Company Ltd by India Cements, ED officials said that these investments were used as shroud for illegal benefits to India Cements by the AP government, during the regime of Y.S. Rajasekhar Reddy....