AP HC orders CBI probe into Jagan`s assets

The Andhra Pradesh High Court on Wednesday ordered a thorough inquiry by CBI into alleged disproportionate assets of former Congress leader Y S Jaganmohan Reddy after registering a criminal case.

Updated: Aug 11, 2011, 00:13 AM IST

Hyderabad: The Andhra Pradesh High Court
on Wednesday ordered a thorough inquiry by CBI into alleged
disproportionate assets of former Congress leader Y S
Jaganmohan Reddy after registering a criminal case.

A division bench comprising Chief Justice Nissar Ahmad
Kakru and Justice Vilas Afzalpurkar directed the probe agency
to take the investigation into the case to its logical end.
State handlooms and textile minister P. Shankar Rao,
three members of main opposition Telugu Desam Party, and a
Kadapa-based lawyer had filed a petition in the court seeing
a CBI inquiry into the companies that had invested in Jagan
Mohan Reddy’s businesses to allegedly win favours in the form
of land allotments and mining leases from the then government
led by Jagan`s father Y S Rajasekhara Reddy.

"Writ Petition Nos.794 and 6604 of 2011 are disposed of
directing the Central Bureau of Investigation to register a
crime and investigate into the accusations indicated
hereinabove and other aspects relevant thereto and take the
investigation to its logical end in accordance with law", the
bench said in its order.

The bench set aside the arguments of Jagan’s lawyers
that the petitioner has political vendetta against him and
said the contention of the petitioner needs to be appreciated.

Shankar Rao alleged Jagan Reddy’s income rose from Rs.
11 lakhs in 2004 to Rs. 43,000 crore by the time of his
father’s death.

CBI had earlier conducted a preliminary inquiry in the
case and submitted a report in a sealed cover to the court
following a directive by the latter.
The preliminary inquiry was conducted to determine if
there was a case for a full investigation of Jagan Reddy’s
wealth.

Jagan Mohan Reddy, who was elected to Lok Sabha from
Kadapa in a bypoll held in May after he left Congress party,
has business interests in media and cement industries among
others.

The bench said the CBI inquiry should cover not only the
purpose figured in the writ petitions but also others who have
a direct or indirect participation in the "irregularities".

Responding to the High Court decision, Jagan claimed
the case is an attempt to corner him.

When I left the party, I knew I will have to face
tough times. I was served notices by the Income Tax department
after I quit the party. Then, Minister Shankar Rao was made to
file this petition. TDP joined him. There is a clandestine
understanding between Congress and main opposition TDP to
corner me. However, I have faith in judiciary and God.

"I am sure justice would prevail", Jagan told reporters
in Kadapa.

PTI