Register case against those who have invested in YS Jaganmohan Reddy firms: HC to CBI

HYDERABAD/NEW DELHI: The Andhra Pradesh High Court has directed CBI to register cases against all entities that invested in companies promoted by YSR Congress leader YS Jaganmohan Reddy to assess whether any quid pro quo was involved in these investments.

Jagan's business empire flourished when his father YS Rajasekhara Reddy was the chief minister of Andhra Pradesh.

Writ petitions filed by Andhra minister P Shankar Rao and two others sought CBI probe into the alleged disproportionate wealth of Jaganmohan. The three petitioners alleged that he amassed wealth when his father was chief minister from 2004-09.

A bench headed by Chief Justice Nisar Ahmad Kakru said the phenomenal growth recorded by Jagathi Publications owned by Jagan Reddy and others, directly under the control of Jagan, needs to be looked into following their "abnormal" performance.

Senior counsel KTS Tulsi, who appeared on behalf of Jagan, said one of the petitioners, Congress MLA Shankar Rao, wrote his first letter to the Chief Justice on November 27, 2010, as Congress wanted to compel his client not to resign from the party.

Jagan quit the party two days after Rao sent the letter to the Chief Justice. "The sitting MLA (Shankar Rao) was rewarded with a Cabinet berth just a week after writing the letter," Tulsi said, stating such petitions were tools employed by adversaries for reaping political gains.

Tulsi contested the allegation that Jagan amassed wealth after his father became the chief minister. "If it is true that Jagan's networth rose from a mere 11 lakh prior to 2004 to 43,000 crore, then he must undoubtedly be sent to jail for the rest of my life," Tulsi said charging that the petitioner had misled the court while suppressing facts.

Jagan's investments in 2003-04 stood at 19.43 crore and his networth rose to 407 crore in March 2011, after the divestment of his equity in Bharati Cements, promoted by him.