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The agency launched the investigations on the basis of a charge sheet filed by the CBI.

The Enforcement Directorate on Wednesday attached assets worth nearly Rs. 750 crore of YSR Congress chief Y.S. Jaganmohan Reddy and others in connection with the ongoing money laundering probe.

The ED has so far attached assets — real estate, shares and fixed deposits — worth Rs. 2,524.10 crore in the case, this being the fifth provisional attachment order.

According to the Directorate, investigations have revealed that Mr. Reddy received huge investments in his companies after 2004 when his father Y.S. Rajasekhar Reddy became the Chief Minister of Andhra Pradesh.

“Bharathi Cement Corporation Private Limited, which till 2007 did not have any major investments other than those from him and his associates, received huge funds from companies of Nimmagadda Prasad of VANPIC Group and others between June 2007 and April 2010, with a huge and unsubstantiated premium as quid pro quo, amounting to Rs. 442.82 crore,” said the ED statement.

Shares of Bharathi Cement at a par value of Rs.10 per unit were also purchased with the allegedly ill-gotten money.

‘Hid facts from bank’

“He got investments from Mr. Prasad and others with unsubstantiated premium and constructed the cement plant. Besides, he took loans by concealing facts from Oriental Bank of Commerce. He also got the mining licence fraudulently in the name of his company,” said the agency.

Bharathi Cement also received limestone from Kadapa mines allotted “illegally” to them by the then Andhra government.

“The value of limestone of over Rs. 152 crore during the relevant period is also proceeds of crime.”

Also, according to the Directorate, Mr. Reddy sold shares of Bharathi Cement to Parficim S.A.S (France) at Rs. 671.20 per share and obtained a wrongful gain of Rs. 416.20 crore, apart from retaining 49 per cent shares either directly or in the name of his group company Silicon Builders Private Limited.

He appointed his wife as chairperson of Bharathi Cement.

“His wife has been drawing huge remuneration as company chairperson. The sale proceeds was laundered through his several group companies, including Sandur Power Corporation, Classic Realty, Silicon Builders, Saraswati Power & Industries, Nivish Infrastructure, Shalom Infrastructure and Capstone Infrastructure,” said an ED official.

‘Funds transferred to wife’

The accused used proceeds from the sale of Bharathi Cement shares for investments in other companies, construction of buildings and purchase of lands in Andhra Pradesh, Telangana and Karnataka.

He cleared old debts on account of asset acquisition in the name of his group companies, and also transferred funds to his wife, alleges the agency.

The ED has alleged that Mr. Reddy is receiving huge sums as dividends from Bharathi Cement in lieu of his 49% holding.

“All these shares are attached now at acquisition cost Rs.38.80 crore,” said the agency.

Hyderabad house in list

The attached properties of YSR Congress president Y.S. Jaganmohan Reddy include his Lotus Pond residence in the city and the Bannerghatta house in Bengaluru, in addition to fixed tangible assets in the form of lands owned by Mr. Reddy and his companies.

These include the 903.28-acre land owned by M/s Saraswati Power and Industries Ltd in Guntur, 9,680 sq.yards at Kattedan, 32 acres in Ranga Reddy, and fixed tangible assets of M/s Shalom Infrastructure Private Limited.

Keywords: Jaganmohan Reddy, money laundering case, Enforcement Directorate, PMLA

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