In a severe indictment of former AP CM Y S Rajasekhara Reddy and his son Jaganmohan Reddy, the Andhra Pradesh high court on Wednesday ordered a CBI probe into several companies investing “corrupt money” in firms floated by Jagan in return for land allotments made by then YSR-led government. Delivering its verdict on the writ petitions filed by Congress minister P Shankar Rao and TDP leader K Yerrannaidu, Chief Justice Nisar Ahmed Kakru and Justice Vilas V Afzulpurkar said the financial misdeeds involve huge government largesse and corporate dealings, including investments, as quid pro quo for the benefit received by investors from the state government. Directing the CBI to register a case under Prevention of Corruption Act and Prevention of Money Laundering Act, the HC said the agency must bring under the scanner even those who were not a party to the writ petition. Legal experts said this would give the CBI to probe the role of bureaucrats. From May 2004 onwards, Jagan formed a number of companies “wherein quid pro quo investments were made out of the benefits received by the investors/beneficiaries from the decisions of the state government in various forms like SEZs, irrigation contracts, relaxation/permission for real estate ventures, mines etc”, the HC said. It held that “the money so paid is nothing but corrupt money attracting Section 3 of the Prevention of Money Laundering Act, 2002”. The investigation by the income tax authorities with respect to assessment orders of Jagathi Publications (publishers of Sakshi newspaper) for the year 2008-09 shows huge unexplained cash credit. Stating that the face value of the shares of some companies were escalated by as much as 35 times, the HC said Jagan is “directly or indirectly connected with some of the companies which are showing phenomenal growth” HC states that the material available supports a thorough probe into all aspects of charges of corruption and moneylaundering.
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