Thanks to Vijay Sai, illegal money flow into Jagan's firms
Hyderabad: The Central Bureau of Investigation (CBI) on Tuesday made startling revelations about the illegal flow of money into YSR Congress chief YS Jaganmohan Reddy owned companies.
The disclosures were made in the petition filed by the probe agency seeking custody of the financial advisor for Jagan's companies, V Vijay Sai Reddy.
The latter was arrested on Monday and produced before the court on Tuesday in the case registered against Jagan and 73 others including Vijay Sai.
According to the CBI, one of the accused companies Sandur Power Company Limited (SPCL) was incorporated on October 23, 1998 by MB Ghorpade. Jagan joined the company in 2001 along with other board of directors Harish C Kamarthi and JJ Reddy.
The company offered 1,75,49,307 equity shares in 2005 at the rate of Rs 10 to two Mauritius based companies ' 2i Capital (PCC) and Pluri Emerging Company Fund (PCC) at Rs 71 per share and received Rs 124.60 crore. Of this, Rs 90 crore was used to repay all its bank loans.
The probe agency has said that Vijay Sai had told the interrogators that he was introduced to Pluri Emerging Company by one Vivek Shekar of 2i Capital.
However, Vivek told the CBI that he never introduced Pluri Emerging Fund to SPCL. According to the probe agency, Jagan had created fictitious transaction of selling 82 lakh shares of SPCL at Rs 18.75 paise a share to ZM Infotech of Chennai, Nelcast Finance Limited, Excel Pro Soft Limited, Sai Surya Warehousing Company Limited and Sigma Oxygen Limited.
Later, the five companies were merged with Kealawn Technologies Limited. Most of the investors in the five companies were not in existence at the addresses shown in the company's records.
Some of the investors named in the official records of the companies had told the CBI that they had not made any investments in the five companies mentioned above though their names were reflected as share holders. The names of investors were taken by Vijay Sai at the instance of Jagan so as to legitimise the ill-gotten money.
Employees of the companies whose names were shown as investors revealed that their salary was very meager and just sufficient to meet their livelihood. They had never invested any amount in any of these companies.
The employees also made it clear that they have not signed any document for acquiring the shares, including application form for allotment of shares. Interestingly, all these companies were audited by VS Reddy & Co. and Vijay Sai Reddy during the relevant period, the CBI said.
The probe agency further said that Jagan had floated four subsidiary companies ' Carmel Asia Holding Private Limited, Silicon Infrastructure Private Limited, Krishna Power Technologies Private Limited and Bhagavath Sannidhi Estates Private Limited. The transactions of these companies were known to Vijay Sai.
According to the CBI, Vijay Sai got the valuation of Carmel Asia Holdings done and got it pre-dated to November 1, 2006, though the same was actually completed in January 2007.
He contacted the valuation company in December 2007 for revaluation of Jagathi Publications for scaling up the project cost to Rs 3,400 crore. Even this report was pre-dated to July 12, 2007, though the report was completed in January 2008.
Vijay Sai, according to the CBI, had urged certain companies in pursuance of the criminal conspiracy with Jagan to route the ill-gotten amounts as investments into Jagathi Publications.
Accordingly, Artillegence Bio-Innovations Limited, Bay Inland Finance Private Limited, Bhaskar Fund Management Private Limited and other individuals submitted their applications for allotment of shares at a premium of Rs 350 during July 2007.
Though the shares were fixed for the first time at a premium of Rs 350 during the board meeting on October 15, 2007, the investor companies strangely knew about the so-called share premium much before the decision was taken by the board.
According to the CBI, Vijay Sai was the key person in routing the bribe money from the companies and individuals into Jagan's companies as a quid pro quo arrangement for the favours made by the Andhra Pradesh government headed by YS Rajasekhar Reddy.
Hyderabad: The Central Bureau of Investigation (CBI) on Tuesday made startling revelations about the illegal flow of money into YSR Congress chief YS Jaganmohan Reddy owned companies.
The disclosures were made in the petition filed by the probe agency seeking custody of the financial advisor for Jagan's companies, V Vijay Sai Reddy.
The latter was arrested on Monday and produced before the court on Tuesday in the case registered against Jagan and 73 others including Vijay Sai.
According to the CBI, one of the accused companies Sandur Power Company Limited (SPCL) was incorporated on October 23, 1998 by MB Ghorpade. Jagan joined the company in 2001 along with other board of directors Harish C Kamarthi and JJ Reddy.
The company offered 1,75,49,307 equity shares in 2005 at the rate of Rs 10 to two Mauritius based companies ' 2i Capital (PCC) and Pluri Emerging Company Fund (PCC) at Rs 71 per share and received Rs 124.60 crore. Of this, Rs 90 crore was used to repay all its bank loans.
The probe agency has said that Vijay Sai had told the interrogators that he was introduced to Pluri Emerging Company by one Vivek Shekar of 2i Capital.
However, Vivek told the CBI that he never introduced Pluri Emerging Fund to SPCL. According to the probe agency, Jagan had created fictitious transaction of selling 82 lakh shares of SPCL at Rs 18.75 paise a share to ZM Infotech of Chennai, Nelcast Finance Limited, Excel Pro Soft Limited, Sai Surya Warehousing Company Limited and Sigma Oxygen Limited.
Later, the five companies were merged with Kealawn Technologies Limited. Most of the investors in the five companies were not in existence at the addresses shown in the company's records.
Some of the investors named in the official records of the companies had told the CBI that they had not made any investments in the five companies mentioned above though their names were reflected as share holders. The names of investors were taken by Vijay Sai at the instance of Jagan so as to legitimise the ill-gotten money.
Employees of the companies whose names were shown as investors revealed that their salary was very meager and just sufficient to meet their livelihood. They had never invested any amount in any of these companies.
The employees also made it clear that they have not signed any document for acquiring the shares, including application form for allotment of shares. Interestingly, all these companies were audited by VS Reddy & Co. and Vijay Sai Reddy during the relevant period, the CBI said.
The probe agency further said that Jagan had floated four subsidiary companies ' Carmel Asia Holding Private Limited, Silicon Infrastructure Private Limited, Krishna Power Technologies Private Limited and Bhagavath Sannidhi Estates Private Limited. The transactions of these companies were known to Vijay Sai.
According to the CBI, Vijay Sai got the valuation of Carmel Asia Holdings done and got it pre-dated to November 1, 2006, though the same was actually completed in January 2007.
He contacted the valuation company in December 2007 for revaluation of Jagathi Publications for scaling up the project cost to Rs 3,400 crore. Even this report was pre-dated to July 12, 2007, though the report was completed in January 2008.
Vijay Sai, according to the CBI, had urged certain companies in pursuance of the criminal conspiracy with Jagan to route the ill-gotten amounts as investments into Jagathi Publications.
Accordingly, Artillegence Bio-Innovations Limited, Bay Inland Finance Private Limited, Bhaskar Fund Management Private Limited and other individuals submitted their applications for allotment of shares at a premium of Rs 350 during July 2007.
Though the shares were fixed for the first time at a premium of Rs 350 during the board meeting on October 15, 2007, the investor companies strangely knew about the so-called share premium much before the decision was taken by the board.
According to the CBI, Vijay Sai was the key person in routing the bribe money from the companies and individuals into Jagan's companies as a quid pro quo arrangement for the favours made by the Andhra Pradesh government headed by YS Rajasekhar Reddy.
News Posted: 4 January, 2012
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