Hyderabad: While facing the repercussion, YSR Congress president Jagan Reddy is likely to face arrest by Central Bureau of Investigation (CBI) soon in disproportionate asset case, sources said.
Before he is arrested, Jagan is likely to be quizzed by the Enforcement Directorate which is also investigating the manner in which funds from some tax haven countries have been routed to his businesses, the sources added.
The Central Bureau of Investigation on Saturday filed a 68-page chargesheet against Kadapa MP and YSR Congress president YS Jagan Mohan Reddy, son of former Andhra Pradesh chief minister YS Rajasekhara Reddy in disproportionate assets case here.
The CBI has also charged 12 other members of the party in the case. The investigating agency, which registered the case on August 17 last year, has listed 72 persons and organisations including Jagan as accused.
The agency has already arrested Jagan’s confidant and auditor Vijayasai Reddy in the case and is gearing up for more arrests.
Meanwhile, Jagan has hit out at CBI calling the chargesheet “fraudulent”. he is contemplating to challenge the chargesheet legally.
The large-scale investments in various companies floated by Jagan, particularly the Telugu newspaper and television channel Sakshi, first came under the scanner of the Income Tax Department in 2010.
The Income Tax authorities established that several "investors" who put in huge money in Jagati Publications, that publishes Sakshi daily, were "non-existent".
CBI then picked up the case on the direction of the Andhra Pradesh High Court and expanded the purview of its investigations to cover the alleged quid pro quo deals benefitting Jagan when his father YS Rajasekhara Reddy was the state Chief Minister.
The ED investigation into the case ran parallel to the CBI probe.
CBI alleged large-scale investments came into Jagan`s companies allegedly as a quid pro quo to the largesse of Rajasekhara Reddy in the form of allotment of government land.
The Comptroller and Auditor General too castigated the YSR government for land distribution spree that had allegedly caused monetary loss running into several thousand crores of rupees to the state exchequer.
But political factors could well determine whether Jagan will indeed be arrested as ruling Congress party, which he quit in November 2010, is said to be desperate to take him back or at least join hands.
Meanwhile, the YSR Congress party claimed that the charge sheet was filed even before the investigation concluded.
The entire YSR cabinet is under scanner for a long time in the illegal assets case due to which the state Congress did face a tough time. With today’s development, the entire situation has become more embarrassing. But by standing tall with the YSR regime, the party definitely has tried to put a brave face; although YSR Congress is trying hard to put a lid on the entire scam by assuring repeatedly that necessary steps would be taken in the matter.