Hyderabad: The Enforcement Directorate may file money laundering case against Y S Jaganmohan Reddy and some of his associates; days after the CBI searched various
premises belonging to the Kadapa MP.
The Directorate is understood to have made a discreet probe trailing the funds pumped by the MP and son of former Andhra Pradesh, Chief Minister, Y S Rajasekhara Reddy and his
associates into the companies owned by them.
The agency, according to sources, has gone through some official documents of transactions as part of its investigation under the provisions of the Prevention of Money laundering Act (PMLA).
The CBI has already registered a case against Reddy on the instructions of Andhra Pradesh High Court under relevant sections of the IPC pertaining to cheating, criminal conspiracy, criminal breach of trust and under provisions of Prevention of Corruption Act.
The CBI said, searches were conducted at Hyderabad, Bangalore, Chennai, Kolkata, Rajkot, Delhi and Mumbai in this connection.
"The CBI has registered a case...against a Member of Parliament from Andhra Pradesh, and others, on the orders of High Court of Andhra Pradesh...on the allegation that the investors invested in the companies owned and promoted by the MP at very high premiums as a quid-pro-quo for the favours doled out by the then chief minister of Andhra Pradesh," a CBI
spokesperson had said.
PTI
First Published: Tuesday, August 23, 2011, 19:09