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Enforcement Directorate attaches Rs 863 crore properties of YS Jaganmohan Reddy, others in laundering case

Wednesday, 5 March 2014 - 7:51pm IST | Agency: PTI
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Initiating one of its biggest criminal actions in a money laundering case, the Enforcement Directorate (ED) today attached assets worth Rs 863 crore of YSR Congress leader Jaganmohan Reddy and his associates in connection with its probe into alleged corruption in an infrastructure project in Andhra Pradesh.

The agency slapped separate notices against Jagan and Nimmagada Prasad whose companies were allegedly favoured by the then AP government (when Jagan's father YS Rajasekhara Reddy was Chief Minister) in the Vadarevu and Nizampatnam Industrial Corridor (VANPIC) project whose aim was to develop sea ports and a green field airport in coastal areas of the southern state and industrial corridors in Prakasam and Guntur districts.

The ED had in 2012 registered a criminal probe under the Prevention of Money Laundering Act (PMLA) against the individuals and associated firms based on a CBI FIR in this case. The ED probe said there was 'quid pro quo' in this deal and hence illegal money exchanged hands. "Various concessions were extended to the VANPIC project in the form of alienation of huge chunks of assigned government land to the companies floated by Nimmagadda Prasad, development of shipyard, green filed airport, exemptions from levy of stamp duty and registration charges, seigniorage (deed-signing) fee and other undue benefits were extended," the ED probe report said.

The CBI chargesheet, which the ED relied upon, said "illegal gains to the tune of Rs 1426.17 crore was made to Prasad in the acquisition of lands and Rs 854.54 crore was made to Jagan and his companies as quid pro quo by Prasad and his companies. This is one of the biggest attachments done by the ED in a money laundering case. The assets will now be seized," sources privy to the development told PTI.




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