Special CBI court dismisses Jagan`s bail plea

Jagan is accused of conspiring with his father and then CM YS Rajasekhara Reddy to dole out favours to certain companies.

Last Updated: Jun 02, 2012, 00:40 AM IST

Hyderabad: A special CBI court on Friday dismissed the bail plea of YSR Congress Party Chief YS Jaganmohan Reddy, who was arrested in connection with a disproportionate assets case registered against him.

The Principal Special Court for CBI cases in its orders upheld the contention of the investigating agency that the petitioner (Jagan) may tamper with evidences.

Earlier, strongly opposing Jagan`s bail plea, CBI senior counsel Ashok Bhan had yesterday alleged, "This is a case of a handful of white-collar criminals who are trying to subvert the Constitution.

"He (Jagan) is among the over 100 MPs, who are facing various criminal charges and just because that he is a party (YSR Congress) President, he cannot claim bail," Bhan contended and alleged that funds were funnelled through hawala transactions and brought back into his businesses as investments.

"Land of poor was given to big people in the name of SEZs. Money swindled in a conspiracy which was taken and given for a song to corporates," the CBI counsel argued.

"He misused power by influencing his father (late YS Rajasekhara Reddy, former CM of Andhra Pradesh)," Bhan further contend.

The defence which had earlier requested that the YSR Congress chief be granted bail to enable him to campaign for June 12 by-polls in the state for his party candidates, who are contesting bye-elections in 18 Assembly seats and one Lok Sabha constituency, made an offer that Jagan be given interim bail till June 10 and he would surrender himself on June 11.

However, CBI did not agree to it saying Jagan is not a candidate in the elections.

Jagan, who was arrested by CBI on May 27 is in judicial remand till June 11 and lodged at the Chanchalguda Central Prison here and CBI has so far filed three charge sheets against him and others charging them under various sections of the IPC.

The CBI maintains that Jagan "influenced" his father to dole out favours to select investors as a quid pro quo for investing in his businesses.

Meanwhile, the Andhra Pradesh High Court reserved for tomorrow its order on the pleas of Jagan Reddy and the CBI over quash petition and custody petition respectively after completion of arguments and counter arguments by defence and prosecution.

The central agency in its petition before the high court had challenged the order of the special court for CBI cases refusing to grant the police remand of Jagan.

The YSR Congress chief, in his petition, challenged his arrest and his subsequent custody.