YSR told us to invest in Jagan firms

The Central Bureau of Investigation is tightening the noose around YSR Congress president Y.S. Jagan Mohan Reddy. It has recorded the statements of two industrialists who are named as accused in the case.
Mr A.K. Dandamudi, a resident of Gunrock Enclave in Secunderabad, named as Accused No. 62, invested Rs 10 crore and Mr Madhav Ramchandran of Bengaluru invested Rs 19.6 crore in Mr Jagan Mohan Reddy’s companies, according to their statements recorded in the local court at Nampally under 164 CrPc. They are likely to turn approvers in the case.

Sources said that Mr Ramchandran had revealed that former chief minister late Y.S. Rajasekhar Reddy had asked him to invest in his son, Mr Jagan Mohan Reddy’s firms, when he had met him in Dubai. Later, when he found that the going wasn’t easy and wanted his money back, it was not returned. Mr Ramachandran is named as Accused No. 65 in the case.

In the first information report filed earlier, the CBI alleged that Mr Jagan Mohan Reddy laundered the bribe money by routing it through various individuals and firms and got investments in his companies at a high premium. The CBI had also alleged that the investments made by several persons and companies are nothing but bribe money paid by beneficiary companies. In the FIR, it had alleged that the kickback money was paid to Mr Jagan Mohan Reddy who exercised his personal infl-uence over his father and benefited them at the cost of the public exchequer.

Srinivasa Reddy of Kukatpally, G. Srinivasa Raju of Srinivas Colony, K. Srini-vas Naidu of Jaggaiahpet, Ajay Garapti of Jubilee Hills, G. Ananth Sena Reddy of Jubilee Hills, K. Prasada Reddy of Banjara Hills, K. Rajeswari, M.V. Bava of Calicut in Kerala, D. Sarojanamma and D. Srinivasulu Reddy of Anna Nagar in Chennai are other individuals who invested in Mr Jagan Mohan Reddy’s firms to the tune of Rs 60.3 crore.

The CBI has already arrested Mr Jagan Mohan Reddy’s auditor V. Vijay Sai Reddy in the case. They allege that he conspired with Mr Jagan Mohan Reddy to get investments in his companies as part of a quid pro quo arrangement. The CBI has grilled the key investor Mr Nimmagadda Prasad for the past two days. Mr Jagan Mohan Reddy is named as Accused No. 1 in the case.