Jagan Reddy under ED scanner as ₹27.5 crore in shares, ₹377 crore in land attached
Hyderabad: The Enforcement Directorate (ED) has attached shares worth ₹27 crore belonging to former Andhra Pradesh Chief Minister Jagan Mohan Reddy, 14 years after the case was registered.
In the same probe, land valued at ₹377 crore linked to the Dalmia Group has also been attached, intensifying the ED’s crackdown on alleged corruption involving the former CM.
The Enforcement Directorate (ED) has provisionally attached assets valued at ₹863 crore as part of its ongoing money laundering investigation against former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy and associated firms. This action stems from a 14-year-old case concerning alleged quid pro quo investments made during Reddy's early business ventures.
Details of the Attachment:
Shares: ₹27.5 crore worth of shares belonging to Jagan Mohan Reddy.
Land: ₹377 crore worth of land assets linked to Dalmia Cements (Bharat) Limited (DCBL). DCBL has stated that the current value of these properties is ₹793.3 crore.
The ED's Hyderabad unit issued the attachment order on March 31, which was received by DCBL on April 15, according to reports.
Background of the Case:
The investigation is based on a Central Bureau of Investigation (CBI) FIR filed in 2011. The CBI alleges that DCBL invested ₹95 crore into Raghuram Cements Ltd, a company associated with Jagan Mohan Reddy, in exchange for favours granted by the Andhra Pradesh government. These favours reportedly included the grant and transfer of a mining lease for 407 hectares in Kadapa district.
Subsequently, Raghuram Cements Ltd sold its shares to a French company, PARFICIMIM, for ₹135 crore. The CBI claims that ₹55 crore of this amount was paid to Jagan Mohan Reddy through hawala channels between May 16, 2010, and June 13, 2011. The ED alleges that these transactions were part of a quid pro quo arrangement, with illegal gratification exchanged for undue benefits from the state government.
Reactions and Legal Proceedings:
DCBL has notified the Securities and Exchange Board of India (SEBI) regarding the asset attachment. The company emphasised that the ED's order does not impact its day-to-day business activities. DCBL is currently reviewing the directive and plans to pursue all necessary legal avenues to protect its interests.
Jagan Mohan Reddy and his associates have consistently denied any wrongdoing, asserting that all investments were legitimate and in compliance with applicable laws. The legal proceedings are ongoing, with further developments anticipated as the case progresses.