ED attaches assets worth over Rs 148 crore in PMLA case against YSR Cong chief Jagan Reddy
Enforcement Directorate has attached assets worth over Rs 148 crore illegally allotted to the firms of Andhra Pradesh businessman Nimmagada Prasad in connection with a money laundering case against YSR Congress chief Jagan Mohan Reddy.
Jagan Mohan Reddy. Photo: PTI
Hyderabad,UPDATED: Jul 29, 2017 02:21 IST
The Enforcement Directorate on Friday attached assets worth over Rs 148 crore illegally allotted to the companies of one of the top businessmen of Andhra Pradesh Nimmagada Prasad in connection with a money laundering case against YSR Congress chief Jagan Mohan Reddy.
According to the agency, a provisional attachment order was issued by its zonal office in Hyderabad under sections of the Prevention of Money Laundering Act (PMLA), for "illegally allotted lands of 11,804.78 acres to the companies of Nimmagadda Prasad in Prakasam and Guntur districts of Andhra Pradesh."
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The value of the attached assets is Rs 148.89 crore, it said.
HERE IS ALL YOU NEED TO KNOW
- "This is a quid pro quo investment case where Nimmagadda Prasad, various companies and individuals made huge investments in firms floated by the then Chief Minister YS Rajshekhar Reddy's son and current YSR Congress president YS Jagan Mohan Reddy for the favours received from the erstwhile Government of Andhra Pradesh by way of allotment of land for the development of port and industrial corridor, exemption under Urban Land (Ceiling and Regulation) Act, etc. when late Dr. Y.S. Rajasekhara Reddy was the chief minister", the order said.
- Accordingly, based on the chargesheet filed by CBI under Section 120-B read with Section 420 of the IPC, 1860 and Section 13 of PC Act, 1988, investigation under PMLA, 2002 has been carried out.
- Investigation conducted under PMLA revealed that Nimmagadda Prasad paid bribe to YS Jagan Mohan Reddy in the form of investments at exorbitant premiums in the companies of YS Jagan Mohan Reddy viz. M/s Jagati Publications Limited, M/s Carmel Asia Holdings Private Limited, M/s Bharathi Cement Corporation Private Limited and M/s Silicon Builders Private Limited to the tune of Rs. 779.50 crore apart from making payment of Rs 57 crore to Y.S. Jagan Mohan Reddy under the pretext of secondary purchase of shares and donation of Rs 7 crore to YSR Foundation.
- In lieu of the aforesaid quid pro quo payments made by Nimmagadda Prasad, it said, he was illegally favoured by the then government of Andhra Pradesh by awarding the project for the development of Vadarevu-Nizampatnam Port and Industrial Corridor (VANPIC) by deviating from all standard norms and without examining the technical/financial capabilities.
- Nimmagadda Prasad was favoured illegally with awarding the VANPIC Project and got GOs for alienation/allotment of lands to the extent of more than 18,700 acres in the name of M/s Vanpic Projects Private Limited, his group company, which has no responsibility for the development of the project.
- The Concession Agreement signed for the development of project contained many serious deviations from the Cabinet Approval and the spirit of MoU entered into between the then Government of Andhra Pradesh and Ras-Al-Khaimah, which are discernibly blatant and detrimental to the interest of GoAP.
- The companies of Nimmagadda Prasad started payments to farmers/governments even before the issuance of GOs and for the lands for which GOs are yet to be issued. Considerations were paid towards 13,220 acres of land.
- In this case, previously an attachment order vide PAO No.01/2014 dated 04.03.2014 was issued attaching properties worth Rs 538.31 crore from YS Jagan Mohan Reddy and his companies and Rs 325.02 crore from Nimmagadda Prasad and his companies including 1,416 acres of land from M/s Vanpic Projects Private Limited and M/s Vanpic Ports Private Limited, which were acquired by those companies for VANPIC Project.
- The Enforcement Directorate began its probe against the politician and his associates on the basis of a CBI FIR.
- The FIR stated that since "May 2004, Jagan floated number of companies wherein quid pro quo investments have been made by beneficiaries from decisions of the state government in various forms like SEZs (special economic zones), irrigation contracts, relaxation/permission for real estate ventures, mines among others."
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