The Central Bureau of Investigation (CBI) which was looking into the financial misappropriation involving large sum of government largesse, corporate dealings including huge investments as part of quid-pro-quo arrangement, narrated how a prodigal son encouraged his father for personal benefit.
The charge sheet submitted to CBI Special Court on Saturday mentioned that Kadapa MP YS Jaganmohan Reddy, the then director of Jagati Publications, abetted his late father and former Chief Minister YS Rajasekhara Reddy and the chief minister's office to ensure “dishonest deals” of allotting large extent of land to business entities as a quid-pro-quo for investments made into firms owned by him.
It mentioned that YSR, in turn, influenced B P Acharya, an IAS officer who’s now in Chanchalguda jail in connection to Emaar case, and, Yaddanapudi Vijaya Lakshmi Prasad, former general manager of AP Industrial Infrastructure Corporation (APIIC) to sign deals detrimental to the financial health of APIIC.
The 68-page charge sheet highlighted how the Kadapa MP ingeniously routed funds from different companies and individuals. “Jagan got shares allotted for himself at par in his companies — Jagati Publications and Janani Infrastructure — but mobilised funds for them at Rs 350 and Rs 102 per share, respectively, from companies and individuals who were allotted lands in the industrial parks and other ventures developed by APIIC in the special economic zones at Jadcherla and Pashamylaram,” the charge sheet mentioned.
The valuation and credit worthiness of Jagati Publications by consulting firm Deloitte Touche Tohmatsu India was ante-dated and exaggerated on the behest of V Vijay Sai Reddy. Jagati Publications was projected as a Rs 3,050-crore company to attract investments at a high premium, the charge sheet mentioned.
Proper assessment
At length, it further explained how Aurobindo and Hetero groups were allotted 150 acres of land on lease of Rs 7 lakh an acre in the green industrial park of APIIC at Jadcherla in Mahbubnagar. Acharya played a key role in the allotment without proper assessment of the requirement of land.
The transaction resulted in a loss of Rs 12.26 crore to APIIC as the rate fixed by the Price Fixation Committee of the government ranged from Rs 15 lakh to 20 lakh an acre.
Trident Life Sciences limited got an extent of 30.33 acres of land at the Export Promotion Industrial Park of APIIC at Pashamylaram in Medak district by falsely representing that it was a 100 per cent subsidiary of Aurobindo Pharma. CBI was categorical in saying that such deal was not allowed as per APIIC rules.