YSR Congress chief Jaganmohan Reddy and co-accused individuals and companies named in the 11 charge sheets filed by the Central Bureau of Investigation could be in fresh trouble with the Enforcement Directorate gearing up to initiate another round of attachments of “proceeds of crime.”

The agency has thus far attached properties worth nearly Rs. 1,500 crore under the Prevention of Money Laundering Act in connection with at least four CBI charge sheets.

The prime allegation is that during his father’s (former A.P. Chief Minister Y.S. Rajasekhara Reddy’s) tenure (2004-2009), Mr. Reddy had floated several companies to receive “quid pro quo” in the form of investments for extending favours to individuals and companies through allocation of government land at cheap rates and grant of exemptions on various counts.

Having recorded the statement of industrialist Nimmagadda Prasad earlier this month, the ED is hopeful of identifying some more properties for attachment in the Vadarevu and Nizampatnam Industrial Corridor (VANPIC) projects case. The court has already confirmed attachment of assets worth Rs. 863 crore against Mr. Reddy, Mr. Prasad and others.

Besides, N. Srinivasan of India Cements has been summoned in connection with the alleged investment of Rs.140 crore in Mr. Reddy’s group of companies for permission to draw extra water from rivers and land lease. Subsequently, attachable properties would be identified.

Based on the Raghuram Cements Limited charge sheet and further probe, the ED has so far quantified the benefits from “illegal grant” of mining lease in Yerraguntla and Kamalapuram Mandals to BCCPL at Rs.142 crore. While further details are being gathered, BCCPL Director G. Balaji has also been summoned by the agency.

The Rs.95-crore “quid pro quo” allegedly received by Mr. Reddy’s Raghuram Cements from Dalmia Cements for allotment of over 1,000 acres of limestone mines has been identified and the process of singling out attachable assets initiated. Efforts are also being made to identify Rs. 55 crore received in cash from Dalmia Cements, whose employees have been summoned and the firm told to submit the papers on benefits derived.

TH

Fresh trouble for Jaganmohan Reddy in money laundering case