CBI continues searches in Jagan, Emaar cases


Hyderabad : For the second day Friday, the CBI continued its searches at offices and homes of those believed involved in alleged illegal assets of Y.S. Jaganmohan Reddy and irregularities in the Emaar township project here.

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About 10 teams of the Central Bureau of Investigation (CBI) began searches at the offices of the companies in which YSR Congress party chief, popularly known as Jagan, and his family members have stakes and also those who invested in his businesses.

For the second consecutive day, the investigating agency searched the residence of businessman Nimmagadda Prasad. Another team was searching Nimmagadda Foundation in Secunderabad.

Prasad of Matrix Labs is one of the investors who pumped in huge money into the companies of Lok Sabha member Jagan, like Bharati Cements, Jagati Publications, which publishes Telugu daily Sakshi, Indira Television, which runs Sakshi television channel, and Sandur Power.

The CBI took up fullfledged investigations on the direction of the Andhra Pradesh High Court, and has booked Jagan and others.

According to the CBI, the allegation is that the investments by individuals and firms in the companies owned and promoted by the MP at very high premiums were a quid-pro-quo for the favours doled out by the late chief minister Y.S. Rajasekhara Reddy, Jagan’s father.

The searches on Friday began at the Hyderabad offices of companies like Vanpic, Penna Cements, Aurobindo Pharma, R.R. Global Infotech, Navabharat Enterprises and Brahmini Infotech, which allegedly received government largesse in the form of lands, mines, special economic zones and ports.

The federal agency is also searching the offices of Harita Fertilisers owned by Jagan’s maternal uncle and former Kadapa mayor Ravindranath Reddy in Nalgonda district, and Bayyaram mines in Khammam district in which Jagan’s brother-in-law Anil Kumar has stakes.

Another CBI team left for Visakhapatnam district to carry out more searches at the offices of the companies allegedly involved in the case.

The CBI Thursday searched residences of Jaganmohan Reddy, his sister Sharmila and various companies in seven cities — Hyderabad, Bangalore, Chennai, Mumbai, New Delhi, Kolkata and Rajkot.

The investigating team headed by joint director V.V. Lakshminarayana is said to be sifting through documents and other evidence collected during the searches Thursday.

The agency is also continuing searches in another case related to realty major Emaar for committing irregularities in developing a township in Hyderabad in joint venture with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

Emaar, which was allotted prime land by the APIIC, reportedly diluted its stake in the project in connivance with government officials, causing a loss of Rs.5,000 crore to the state exchequer.

The investigating team Thursday searched the residence of Indian Administrative Service (IAS) officer B. P. Acharya, who is at present principal secretary (home). He was managing director of the APIIC when Emaar diluted its stake and roped in another partner in the project without its approval.