The CBI has alleged that funds into Jagati Publications had been routed through four sub-contractors of Ramky Infrastructure Company though they did not actually do any contract work. It alleged that A. Ayodhya Rami Reddy, chairman of Ramky Group, had invested in Jagati Publications through two companies owned by his relatives in return of favours received. Funds were pumped into Jagati Publications thro-ugh M/s TWC Infrastruc-ture Private Limited and M/s ERES Projects Private Limited. The money was allegedly provided by Mr Rami Reddy. The CBI has alleged that Mr Rami Reddy pumped the funds into TWC Infrastructure through four persons who were said to be sub-contractors of M/s Ramky Infrastructure Ltd but who had never done any work.
The CBI said Mr Rami Reddy gave cheques worth more than Rs 2.22 crore to M.V. Koteswara Rao, N. Shankar Reddy, K.M. Reddy and V. Rosamma, for executing works that were never done. Subsequently, the four invested Rs 2 crore in TWC that then bought 55,555 shares in Jagati. The CBI has stated in the chargesheet that Samba-siva Reddy and Alla Venkata Reddy who are directors of TWC, are related to Mr Rami Reddy. Another Rs 8 cr was diverted into Jagati Publications through ERES. Ramky Estates and Farms Private Ltd paid Rs 8 crore to ERES towards land advance and the same was diverted into Jagati on Feb. 14, 2008.
The directors of ERES are Evuri Srinivas Reddy and Evuri Rajasekhara Reddy who are also relatives of Mr Rami Reddy. The CBI has provided a detailed flow chart of the then CM YSR’s decision with regard to the green belt in Pharma City at Parawada where Ramky was allotted land, wrongful gain in the Green Belt and investments by Ramky Group through TWC and ERES as part of the quid pro quo arrangement.
The third chargesheet has alleged that Mr Rami Reddy had fraudulently got approval for the layout plan of Ramky Pharma City with provision of only 59 acres as green belt as against 973 acres that was required in the Master Plan. A total number of 113 plots in the non SEZ area and 22 plots in SEZ area were carved out. Of these 80 plots in non-SEZ were sold and Rs 24,385.49 lakh was received. Fourteen plots in the SEZ were leased out and Ramky Pharma City made Rs 23,999.49 lakh.
Regarding the role of IAS officer G. Venkata Ram Reddy, the CBI alleged that the officer had not corresponded with the MAUD department for modification or amendment of the Green Belt zone. The CBI also alleged that Vijay Sai Reddy had obtai-ned wrongful gains by getting appointed as TTD member and also by getting nominated as Oriental Bank of Commerce director.