The Enforcement Directorate (ED) on Friday attached over 11,804 acres, worth about ₹149 crore, in Prakasam and Guntur districts of Andhra Pradesh that were “illegally” allotted to companies of Nimmagadda Prasad in connection with a money laundering case involving Y.S. Jagan Mohan Reddy, an Indian politician of YSR Congress.
Y.S.R. Reddy’s election declaration of 2004 included tax returns showing Jagan’s assets at Rs. 9.2 lakh, out of total family assets of Rs. 50 lakhs. In April 2009, Jagan revealed total assets of Rs. 77 crores, and by 2011 this has allegedly increased to amount Rs. 365 crore. In August 2011, the Andhra Pradesh High Court, based on a preliminary report by the CBI, ordered a thorough probe. In addition to the CBI, the Comptroller and Auditor General (CAG) and the Indian Revenue Service (IRS) has probed the corruption charges. Jagan Reddy was arrested by the Central Bureau of Investigation on embezzlement charges and his Judicial custody was extended repeatedly as the investigation proceeded. Nimmagadda Prasad is an Indian industrialist from Andhra Pradesh, India, known for his ventures in the Pharmaceutical and Television industries.
When Mr Reddy’s father the late Y.S. Rajasekhara Reddy was the Andhra Pradesh Chief Minister, various approbations in the form of land allotments for development of port and industrial corridor, besides exemption under the Urban Land (Ceiling & Regulation) Act, were given to Mr Nimmagadda Prasad’s company and in return Mr Prasad’s various companies and individuals made huge investments in companies floated by Mr Reddy.
Based on a CBI charge sheet, the ED had launched a probe under the Prevention of Money Laundering Act and found that Mr Prasad allegedly paid bribes to Mr Reddy in the form of investments totalling about Rs.779.50 crore in the latter’s companies: Jagati Publications Limited, Carmel Asia Holdings Private Limited, Bharathi Cement Corporation Private Limited and M/s Silicon Builders Private Limited.
ED had attached assets worth Rs.538.31 crore of Reddy and his companies and Rs.325.02 crore of Mr Prasad and his companies, including 1,416 acres of land from Vanpic Projects Private Limited & Vanpic Ports Private Limited.