ED attaches Jagan Reddy's assets in decades-old money laundering case
What's the story
The Hyderabad Enforcement Directorate (ED) has attached assets worth over ₹800 crore in its probe into a money laundering case against former Andhra Pradesh CM YS Jagan Mohan Reddy and Dalmia Cements (Bharat) Limited (DCBL).
The agency attached Reddy's shares worth ₹27.5 crore and Dalmia Cements' land worth ₹377 crore. DCBL claims the property is worth ₹793.3 crore.
The move is part of a continuing investigation into alleged quid pro quo investments during Reddy's business years, before he became CM.
Investment details
DCBL's investment and alleged quid pro quo deal
In 2011, the Central Bureau of Investigation (CBI) registered an FIR against DCBL for making a ₹95 crore investment into Raghuram Cements Ltd., represented by Reddy.
As part of a 'quid pro quo' deal, Reddy allegedly got a mining lease for 407 hectares in Kadapa district granted and transferred to DCBL.
He did so using his influence over his father YS Rajasekhara Reddy, who was then CM.
Illegal transactions
Allegations of illegal gratification and hawala transactions
The ED said that Reddy, auditor and former MP V Vijaya Sai Reddy, and Puneet Dalmia of DCBL had entered an agreement.
They had allegedly sold their shares in Raghuram Cements Ltd. to French company PARFICIM for ₹135 crore.
Of this, ₹55 crore was allegedly paid to Reddy in cash through hawala channels between May 16, 2010, and June 13, 2011.
DCBL returned the purported sale proceeds to Reddy through similar channels.
Company response
DCBL responds to ED's asset attachment
DCBL has notified the Securities and Exchange Board of India (SEBI) regarding the attachment of assets.
The company reiterated that the ED's order does not impact its day-to-day business activities.
DCBL is presently examining the ED's order and will seek all necessary legal remedies to protect its interests, it said.