ED attaches Rs 863 cr assets of Jagan, others for laundering

A special anti-money laundering court here today attached properties worth Rs 863 crore of YSR Congress leader Jaganmohan Reddy and his associates in connection with its probe into alleged corruption and money laundering in an infrastructure project in Andhra Pradesh.

The court's orders came on a notice of the Enforcement Directorate (ED), issued in March, in which it had slapped separate notices against Jagan and Nimmagada Prasad whose companies were allegedly favoured by the then Andhra Pradesh government (when Jagan's father Y S Rajasekhara Reddy was chief minister) in the Vadarevu and Nizampatnam Industrial Corridor (VANPIC).

The project's aim was to develop sea ports and a green field airport in coastal areas of the southern state and industrial corridors in Prakasam and Guntur districts.

The current order, under the Prevention of Money Laundering Act (PMLA), has been the largest order for attachment of assets in this case.

The ED had in 2012 registered a criminal probe against the individuals and associated firms based on a CBI FIR in this case.

The ED probe had said that there was a 'quid pro quo' in this deal and hence illegal money exchanged hands.

"The court has confirmed the ED order and the agency will soon take possession of these assets," a source privy to the development said.

"Various concessions were extended to the VANPIC project in the form of alienation of huge chunks of assigned government land to the companies floated by Nimmagadda Prasad, development of shipyard, green filed airport, exemptions from levy of stamp duty and registration charges, seigniorage (deed-signing) fee and other undue benefits were extended," the ED probe report had said.

The CBI charge sheet, which the ED relied upon, said, "Illegal gains to the tune of Rs 1426.17 crore was made to Prasad in the acquisition of lands and Rs 854.54 crore was made to Jagan and his companies as quid pro quo by Prasad and his companies."

The properties which have been attached are in the name of "Jagan and his companies Ms Carmel Asia Holding Pvt Ltd and Jagathi Publications Ltd" along with Prasad and his firms "G2 corporate services Ltd, Alpha Villas Pvt Ltd, Alpha Avenues Pvt Ltd, Gilchrist Investment Pvt Ltd, Suguni Constructions Pvt Ltd and Beta Avenues Pvt Ltd".

The attached assets are broadly divided into various financial instruments.

While Rs 365.45 crore of shares, plant and machinery of the project have been attached, fixed deposits of Rs 4.14 crore in the name of Jagathi Publications Public Ltd, Rs 10.44 crore shares of Indira Television Pvt Ltd and Jagan's various properties worth Rs 11 crore have been attached among others.

This is the fourth PMLA attachment order issued by the ED in this case and the three earlier such orders had a value of approximately Rs 265 crore.

An attachment order under PMLA is an enforcement action to restrict the accused from taking benefit out of the properties or assets they have created through illegal means.