Illogical investments helped CBI
The CBI, which has alleged that Jagati Publications had received Rs 1,246 crore as quid pro quo investments, has only circumstantial evidence against Kadapa MP Y.S. Jagan Mohan Reddy regarding charges of abetting his late father and former chief minister YSR.
“Though there is no direct evidence of abetment, there is circumstantial evidence. Huge investments in Jagati Publicat-ions are illogical. Under Sections 11 and 12 of Prevention of Corruption Act, Jagan was both the receiver of bribes and abe-ttor of corruption,” said an investigating official.
The official said that it did not stand to logic that Jagati Publications, which had an accumulated loss of Rs 350 crore in four years, could get huge investments of Rs 1,246 crore.
The CBI, in its chargesheet filed against Mr Jagan Mohan Reddy, Aurobindo, Hetero and others, has explained the funds flow. “MD of Aurobindo K. Nityananda Reddy transferred Rs 2 crore to the account of his wife K. Rajeswari and Rs 1 crore to his brother K. Prasad Reddy for investing in Jagati. Nityananda Reddy availed a loan of `1 crore and transferred the same to his wife for investing in Jagati,” said the CBI.
The CBI alleged that chairman of Aurobindo P.V. Ram Prasad Reddy also availed a loan of `5 crore and transferred the amount into the account of Trident and issued a cheque of `5 crore to Jagati for investment. Hetero Group and M. Srin-ivasa Reddy also invested `19.5 crore in Jagati and Janani Infrastructure.
Meanwhile, the Enforcement Directorate is continuing its probe in the money laundering case against Mr Jagan Mohan Reddy.
The CBI will be passing on information to the ED which will step in after finalisation of the charg-esheets. The issue of attaching properties will then come up.
An official said, “How the money was routed into Mr Jagan Mohan Reddy’s companies and how it was laundered will be dealt mostly by the ED. We have to get information on letter rogatory.”
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