Enforcement Directorate attaches Rs 148 crore of Nimmagadda Prasad's assets
Hyderabad: The Enforcement Directorate on Friday attached properties worth Rs 148.89 crore of companies, including VANPIC, belonging to industrialist Nimmagadda Prasad, one of the main accused in the Y.S. Jagan Mohan Reddy quid pro quo investment case.
Around 11,804 acres of land in Prakasam and Guntur allotted allegedly illegally to the companies of Mr Prasad were attached.
Earlier the ED had attached properties worth Rs 539 crore of Mr Jagan Mohan Reddy and those valued at Rs 325 crore belonging to Mr Prasad in the same case.
The Provisional Attachment was issued under Prevention of Money Laundering Act.
According to the ED, Mr Prasad, along with other companies and individuals made huge investments in companies floated by Mr Jagan Mohan Reddy in exchange for favours received from the erstwhile undivided AP government.
Allotment of land for development of port and industrial corridor, exemption under Urban Land (Ceiling & Regulation) Act were granted when Y.S. Rajasekhar Reddy was the Chief Minister. The ED booked a PMLA case based on the CBI case.
The ED said its investigations had revealed that Mr Prasad had allegedly bribed Mr Jagan Mohan Reddy in the form of investments at exorbitant premiums in Jagati Publications Limited, Carmel Asia Holdings Private Limited, Bharathi Cement Corporation Private Limited and Silicon Builders Private Limited to the tune of Rs 779.50 crore.
He also made a payment of Rs 57 crore to Mr Jagan Mohan Reddy in the guise of secondary purchase of shares. Additionally, a donation of Rs 7 crore to YSR Foundation was also made, the ED said.
“The Vadarevu-Nizampatnam Port and Industrial Corridor (VANPIC) was allotted to Mr Prasad by keeping on hold all standard norms and without examining the technical and financial capabilities,” an ED sources said. He said 18,700 acres were allotted to VANPIC Projects Private Limited, a Nimmagadda Group firm, “which took no responsibility for the development of project”.
The concessionairre agreement signed for the development of the project contained serious deviations from the structure that would get Cabinet approval, he said. The MoU between the then government and Ras-Al-Khaimah were said to be against the interests of AP.
“The companies of Mr Prasad started payments to farmers and governments even before the issuance of GOs and for lands for which GOs are yet to be issued. Considerations were paid towards 13,220 acres of land,” alleged the ED source.
