The ED case against Jagan,  the rebel Kadapa MP and son of former chief minister Y S Rajasekhar Reddy, comes immediately in the wake of the CBI filing cases against him and searching his assets and also that of his investors.

The FIR was filed by the ED officials in the special ED court in the civil courts complex in Hyderabad late Tuesday evening . The ED has also filed another FIR in the EMAAR properties case in which it has listed the senior IAS officer B P Acharya as the main accused  along with six others  including Jagan .

The Directorate is understood to have made a discreet probe trailing the funds pumped by the MP and his associates into the companies owned by them. The agency, according to sources, has gone through some official documents of transactions as part of its investigation under the provisions of the PMLA. The CBI has already registered a case against Reddy on the instructions of Andhra Pradesh High Court under relevant sections of the IPC pertaining to cheating, criminal conspiracy, criminal breach of trust and under provisions of Prevention of Corruption Act.

It may be recalled that YS Jagan’s Sandur Power raised Rs 124.60 crore by allotting 1.75 crore shares of Rs 10 face value at a premium of Rs 61 to Mauritius-based shell companies, 2i- capital PCC and Flurry Energy PCC.  Some Singapore-based companies too invested in the Jagan companies.For example, PVP Ventures, promoted by P Varaprasad, raised overseas funds to an extent of Rs 868 crore.