Probe reveals Prasad paid bribe to Reddy in the form of investments at exorbitant premiums
The Enforcement Directorate (ED) on Friday attached over 11,804 acres of land worth about Rs 149 crore, in Prakasam and Guntur districts of Andhra Pradesh, in connection with its money laundering probe in cases related to YSR Congress leader Jagan Mohan Reddy and others. The land was "illegally" allotted to companies of Nimmagadda Prasad in connection with a money laundering case involving Reddy.
A senior officer of ED stated, "This is a quid pro quo investment case where Prasad, various companies and individuals made huge investments in companies floated by YS Jagan Mohan Reddy for the favours received from erstwhile Andhra Pradesh government, by way of allotment of land for development of port and industrial corridor, exemption under Urban Land (Ceiling and Regulation) Act when Late YS Rajasekhara Reddy, father Jagan Mohan Reddy was the chief minister."
The agency carried out a probe based on the charge sheet filed by CBI under various section of Indian penal Code and Prevention of Corruption Act.
In this case, previously an attachment order was issued attaching properties worth Rs 538.31 crore from Jagan Mohan Reddy and his companies and Rs 325.02 crore from Prasad and his companies including 1,416 acres of land from Vanpic Projects Private Limited and Vanpic Ports Private Limited which were acquired by those companies for VANPIC Project.
Further, the Proceeds of Crime identified in the form of lands illegally allotted to the companies of Prasad to the extent of 11804.78 acres in Prakasam and Guntur Districts valued at Rs 148.89 crore as per the government order are now attached.
Investigation conducted under PMLA revealed that Prasad paid bribe amounts to Jagan Mohan Reddy in the form of investments at exorbitant premiums in the companies of Reddy to the tune of Rs 779.50 Crore apart from making payment of Rs 57 crore in the guise of secondary purchase of shares and donation of Rs 7 crore to YSR Foundation.
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