Hyderabad: Spelling more trouble for Kadapa MP YS Jaganmohan Reddy and former Karnataka tourism minister Gali Janardhana Reddy - arrested in connection with an illegal mining case - fresh evidence of financial links between them have been found.
Reports, Wednesday, claimed that former Andhra Pradesh chief minister YS Rajasekhara Reddy, along with his son Jaganmohan, graced the foundation-stone laying ceremony of Janardhana Reddy`s Brahmani Steels in Kadapa district in 2007.
At that time, speculations were rife that Janardhana Reddy had got 10,670 acres of government land at throwaway prices from Andhra Pradesh government. However, YSR had then rubbished such allegations as baseless.
Today, the YSR family and the Reddy brothers of Karnataka are under intense CBI scanner, which is probing reports of financial links between them. As per reports, the two families have, for long, enjoyed a close relationship and helped each other in all ways possible.
It is alleged that former Andhra Pradesh chief minister YSR granted extended lease to Janardhana for his mining operations in Andhra Pradesh.
Moreover, a plush building in Hyderabad, which houses the registered office of Jagati Publications that runs the Jagan-owned Sakshi newspaper, shares the address with two other firms, Red Gold Enterprises and RR Global Enterprises that are alleged to be the investment link between Janardhana Reddy`s Obalapuram Mining Company (OMC) and Jagan`s companies.
Meanwhile, documents linking Red Gold as a partner of OMC are said to have been found. The documents suggests that OMC was obliged to sell 50 percent of all iron ore mined, at operational cost plus five percent, to Red Gold. This was said to be for help in identifying deposits and getting licences and permissions. Critics point out that such a consultancy worth Rs 400 crore per annum is unheard of.
Meanwhile, an estimated investment of Rs 44 crore made by RR Global Enterprises, another trading company dealing with iron ore, in Jagan’s Jagati Publications is also under scrutiny.
When quizzed by reporters about his family’s alleged financial links with Reddy brothers of Karnataka, Jagan categorically denied it.
"Ask the BJP... what do I have to do with it?" Jagan reacted angrily to the reporters when they quizzed him about Janardhana`s arrest.
Janardhana Reddy and his brother-in-law DV Srinivas Reddy were arrested on Monday by the CBI in connection with the alleged illegal mining business. Janardhana’s company, OMC, has been accused of mining in forest areas, and of illegally exporting iron ore.
The new evidence of a financial link between the two parties, if established by the CBI, can spell a catastrophe for the young Andhra Pradesh politician and the Bellary brothers.