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`Industrialist cooked up land cost in Jagan case`

Last Updated: Thursday, May 17, 2012 - 00:23

Hyderabad: Industrialist Nimmagadda Prasad, arrested by CBI in an alleged disproportionate assets case involving Kadapa MP Y S Jaganmohan Reddy, has exaggerated the land acquisition cost of Vanpic Project to the tune of Rs 300 crore, the CBI claimed on Wednesday.

Seeking a 14-day police custody of Prasad, who was today remanded in judicial custody by a CBI special court here till May 30, along with senior bureaucrat K V Brahmananda Reddy, the probe agency alleged that the Concession Agreement signed (for execution of Vanpic project) was not in tune with the Cabinet approval and contained several grave errors/lapses.

In its police custody petition, the CBI said during December 2007-January 2008, Prasad incorporated Matrix Enport Holdings Pvt Ltd and in February 2008, the Government of RAK (Ras Al Khaimah) addressed the then Andhra Pradesh government for creation of the proposed Vodarevu and Nizampatnam Port Projects (Vanpic) on Government-to-Government basis.

It, further, submitted that the YSR Cabinet approved the proposals for awarding the Vanpic project, including development of two ports at Vodarevu and Nizambapatnam in Prakasam and Guntur districts, respectively, along with the Port-based Industrial corridor -- collectively known as Vanpic Project -- on build-own-operate and transfer (BOOT) basis to the `Vanpic Ports Pvt Ltd (SPV)`.

On July 7, 2008, Brahmananda Reddy, who had earlier worked with the state`s ports, investment and infrastructure wing as its special secretary, and Prasad signed the Concession Agreement on behalf of the Andhra government and `Vanpic Ports Pvt Ltd (SPV) respectively.

Investigation, however, revealed that the said agreement signed was not in tune with the Cabinet approval, the CBI said in its police custody petition, adding that Vanpic Projects Pvt Ltd had so far cornered about 13,000 acres of land in the Vanpic Project area.


First Published: Thursday, May 17, 2012 - 00:23

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