Kadapa MP Jaganmohan Reddy was questioned by the Enforcement Directorate on Friday on allotment of more than 600 hectares of limestone quarries to one of his companies when his father YSR Reddy was chief minister of Andhra Pradesh. The agency estimates the quarries to be worth Rs 3,000 crore.Published Date: 2012-07-13 15:37:58 GMT
The limestone quarries were allotted in May 2009 to Saraswati Power Industries Ltd (SPIL), a company controlled by Jagan. The allotment was made a few months before YSR, then chief minister of Andhra Pradesh, died in a helicopter crash.
Another allegation of money laundering against Jagan is the investment of Rs 124 crore routed through some shell companies in Mauritius. Sources said ED officials asked Jagan on the source of these funds.
Sandur Power Company Ltd, another firm associated with Jagan, received Rs 124 crore from two Mauritius-based companies. The ED probe revealed that Jagan had purchased back the shares from the two companies. ED officials have sought details on the source of these funds.
The ED had on August 30, 2011 registered a money laundering case against Jagan under Prevention of Money Laundering Act. The companies under ED scanner included Sandur Power Company Ltd, Carmel Asia Holdings Pvt Ltd, Classic Realty Pvt Ltd, Bharati Cements Corporation Ltd and Jagathi Publications Pvt Ltd.
The agency had taken permission from a CBI court in Hyderabad to question Jagan on investments made in these companies. He was arrested by CBI on May 27 in a disproportionate assets case.
Sources said firms associated with Jagan made huge profit out of investments made by companies that were allotted thousands of acres of land by his CM father.
The ED officials questioning Jagan are armed with detailed reports from Financial Intelligence Unit and the income tax department with documentary evidence collected on transactions made by some of the firms accused of money laundering. The agency had already issued summons to these companies seeking clarifications.
The Reserve Bank of India too has pitched in with its input on foreign investments made in Jagan's companies. The ED had also received details from Luxembourg on investments made by some foreign entities into Jagan's firms.
The agency has, meanwhile, started proceedings to attach Jagan's properties along with that of other accused in the PMLA case. His properties are being identified and after his statement is recorded, the ED may formally attach his properties equivalent to the money laundering charges.