Probe Jagan Mohan Reddy's assets, HC tells CBI

HYDERABAD: In a move that will generate more heat in Andhra Pradesh's surcharged political arena, the Andhra Pradesh high court on Tuesday directed the CBI to conduct a preliminary inquiry into the alleged illegal assets of YSR Congress chief, Y S Jagan Mohan Reddy, and submit a report within two weeks.

The division bench comprising Chief Justice Nisar Ahmad Kakru and Justice Vilas V Afzalpurkar passed this interim order while hearing a letter-cum-petition filed by Congress MLA and textiles minister P Shankar Rao and a separate petition filed by three TDP leaders; all have termed Jagan's wealth as "ill-gotten".

The preliminary enquiry will ascertain whether there is need to order a regular investigation, the bench said, and directed all respondent companies and individuals in the case to cooperate with the CBI. The agency was also directed to inform the court about any non-cooperation by respondents.

The complaint against Jagan is that he acquired assets worth hundreds of crores from various companies and individuals as a quid pro quo for the land allotted and licences granted to them at cheap prices for various activities when his late father Y S R Reddy was the chief minister between 2004 and 2009.

The complaint also listed the way the monies travelled into Jagan's companies such as Bharathi Cements, Jagathi Publications, the publishers of Sakshi newspaper, and Indira Television, the broadcaster of Sakshi TV, etc. The ED, too, is learnt to be awaiting a formal registration of an FIR before proceeding against Jagan. The ED will move forward under the prevention of money laundering Act only after satisfying itself about the presence of a reasonable cause, which could be in the form of either an FIR or a chargesheet.

The petitioners listed various companies of Jagan which received funds from tax havens abroad and alleged he was linked to Karnataka minister G Janardhana Reddy.