HYDERABAD: The Andhra Pradesh High Court on Wednesday sent pulses racing in the state’s politics and government alike by ordering full-fledged CBI probes into two cases that have been simmering for months. In one, the court ordered a thorough inquiry into the wealth accumulated by Kadapa MP Y S Jagan Mohan Reddy, particularly the source of investments made in his businesses by companies that allegedly benefited from the reign of his father, former chief minister Y S Rajasekhara Reddy.In the other, the court ordered a CBI inquiry into how the AP Industrial Infrastructure Corporation (APIIC) allowed itself to be nudged out of equitable benefits from a fancy township project being executed by its joint venture partner Emaar Properties. In both cases, a division bench comprising Chief Justice Nissar Ahmad Kakru and Justice Vilas Afzalpurkar ordered filing of criminal cases, and mandated CBI to take the investigations to their logical end. The judges also laid down that the inquiries will cover not only the fraudsters themselves but also those others who had a direct or indirect role in the irregularities.The directives came after the judges heard petitions filed by minister P Shankar Rao and three TDP leaders. The court had earlier directed the CBI to conduct preliminary probes into both the Jagan investments and the Emaar deal. Acting upon the two reports, the court decided there was prima facie basis for further action in both cases.The case against Jagan is that his media and cement companies received quid pro quo investments from several companies that had won favours in the form of land allotments and mining leases from the then government led by his father.Brushing aside Jagan’s defence that this was only political vendetta, the judges said the allegations related to surrender of state interests, and therefore the plea of political rivalry cannot be used to unsuit the petitions.The bench said, “Prima facie, it emerges... that from May 2004 onwards, respondent No. 52 (Jagan) floated 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.’’Besides, huge premium amounts were paid for the shares of these companies.The judges explained: ‘’Investigation by Income Tax authorities of the assessment by M/s Jagathi Publications (Jagan’s media company) for 2008-09 showed huge unexplained cash credit. Similarly, huge escalated face value of shares to the extent of 35 times was also not accepted by the Income Tax authorities and respondent No. 52 is directly or indirectly connected with some of the companies which are showing phenomenal growth... These facts make it necessary to ascertain the role of individuals/firms/public servants in the group companies of the respondent,” the judges said.In the Emaar deal case, the bench said: “The allegations show heavy loss was caused to the public exchequer and APIIC transferred huge extents of land for an unreasonably low consideration, granting numerous benefits and allowing a stranger -- third party company -- to take over the entire project with all rights of a developer without the consent of the APIIC...”The Emaar deal too dates back to the Rajasekhara Reddy regime. In it, a township was to be built at Manikonda by Emaar Properties in a joint venture with APIIC. Further proceedings in the deal saw the state corporation’s equity in the project whittled down from 49 per cent to 26 per cent. After having secured 258 acres of land, Emaar brought in affiliate company Emaar MGF as co-developer without the consent of APIIC.
Comments
0 comment