CBI arrests Matrix Prasad in Jagan assets case

HYDERABAD: The moves against Jagan Mohan Reddy were put into high gear Tuesday with leading industrialist Nimmagadda Prasad , popular known as Matrix Prasad, being arrested by the Central Bureau of Investigation Tuesday.

Indian Railway Service (IRS) officer K V Brahmananda Reddy was also arrested along with Prasad, who had been named as accused no. 12 in the alleged illegal assets case of the Kadapa MP.

Over the last few months, the CBI had been summoning Prasad for questioning and his arrest had been imminent, sources said.

On Tuesday too, the CBI sleuths summoned both of them to the Dilkusha guest house and later announced their arrest. Both of them have been arrested on charges of criminal conspiracy, criminal breach of trust, criminal misconduct and various other sections of the Prevention of Corruption Act.

Prasad allegedly invested about `500 crore in Jagan Mohan Reddy's companies. Further, many of the promoters in the companies floated by Jagan and Prasad are said to be the same.

Prasad is the promoter of M/s Vanpic Projects Private Limited to which more than 15,000 acres of land was allotted in Prakasam district by the then Y S Rajasekhara Reddy government, allegedly in violation of norms.

Further, several concessions were extended to Vanpic under the Stamps and Registration Act. The CBI's case is that these favours were granted to Prasad in lieu of his investment in Jagan's companies.

The CBI had raided the offices of Prasad a few months ago as part of its probe into the sources of Jagan's investments. Prasad reportedly invested Rs 260 cr in Jagan's companies and got a return of `500 cr in a matter of three years.

Prasad's Matrix Enport is one of the two promoters of Vadrarevu and Nizampatnam Port & Industrial Corridor (Vanpic), the government of Ras al Khaimah (one the emirates in UAE) being the other.

Conceived in 2007, the project's aim was to develop a world-class port and an integrated industrial cluster.

However, till now, neither the port, shipyard, energy park, industrial cluster nor airport have taken off. Brahmananda Reddy was also earlier summoned for questioning by the CBI.

His house at Habsiguda in the city was reportedly raided by the sleuths late in Tuesday night. Reddy was the special secretary, infrastructure and investment, under the YSR government. He had also been earlier accused of misusing his official position to favour companies and individuals who invested in Jagan's company. He was also the MD of Aviation Corp when YSR died in the chopper crash