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The Central Bureau of Investigation (CBI) on Wednesday informed the trial court it had completed the investigation into the alleged quid pro quo investments case filed two years ago against Kadapa MP Y S Jagan Mohan Reddy. Jagan is the son of former chief minister YS Rajasekhara Reddy.
The case, which shook the political and business establishment in Andhra Pradesh with a potential long-term consequences on both the spheres, was filed at the behest of the state high court on August 17, 2011, after it ruled prima facie evidence in the charges levelled in a public interest litigation questioning the nature of investments that came in the firms floated by Jagan.
The CBI's submission regarding the completion of the investigation comes in the light of May 9 directions it had received from the Supreme Court to expedite and complete the investigation in four months. The apex court gave these directions while upholding the CBI's objection to a fresh application moved by the prime accused for grant of bail on grounds that he would influence the investigation process.
Incidentally, the CBI today informed the trial court that it "has completed investigation in the entire aspects of the case" in its counter affidavit against a fresh petition for grant of bail filed by Jagan in a bid to end his 16-month long confinement in a local jail.
The completion of investigation gives a fresh chance for the petitioner to seek bail as the Supreme Court also observed in its earlier orders that the petitioner was free to renew his prayer before the trial court on completion of the investigation.
<b>CBI seeks custodial trial for Jagan</b>
While Jagan had already filed a bail petition before the trial court in anticipation of the imminent end to the investigation last week, the CBI has something else in mind to scuttle his move.
The investigating agency requested the special court to dismiss Jagan's bail petition in the interest of justice stating that the petitioner at this stage would frustrate the process of trial and influence the witnesses who would be deposing before the trial court.
“The petitioner himself claimed that he is highly influential and a dominant political force. Therefore, the process of trial being derailed cannot be ruled out if he is granted bail,” CBI counsel Surendra Kumar argued before the judge.
Senior Supreme Court lawyer Suresh Kumar appearing for Jagan, however, questioned the CBI contention while asking it to provide any material to show that his client misconducted at any stage of investigation in the past as a basis for their opposition to his bail.
“There is a large difference between the custodial interrogation and the custodial trial. It will be 10 trials as the CBI had filed 10 charge sheets. Refusal of bail is against the personal liberty guaranteed in the constitution,” he argued.
The present case is at best comparable with the 2G case where all the employees and officers gave evidence against then Union minister A Raja, who was granted bail while the case was on trial, according to him. He also told the court if his client was considered as a kind of a person who has to face custodial trial it was in nobody’s wisdom.
Following the arguments, the court posted the case for orders in Jagan's bail petition to September 23.
Meanwhile, with the CBI officially stating that the investigation in this case is complete, certain instances mentioned in the FIR, including overseas investments in Sandoor Power Company owned by Jagan or the persons behind the investments made by the so-called suitcase companies from Kolkata in other firms of the accused, remained unanswered.
The investigative agency had sent out letter rogatories to the authorities of various countries seeking investigation into the transactions that took place in those countries but is yet to get any breakthrough on this front, according to some reports.
<b>Beyond Jagan</b>
While ordering a CBI enquiry in 2011, the AP high court had observed that from May 2004 when Y S Rajasekhara Reddy became chief minister, Jagan floated a number of companies wherein quid pro quo investments were made by those who benefited from the government decisions.
According to the court, these decisions included SEZs, irrigation contracts, relaxation/permission for real estate ventures and mines besides paying huge premium amounts for buying shares and investing in his companies by such beneficiaries.
In line with these observations, the CBI filed an FIR a week later against Jagan, 72 individuals and companies covering a big gamut of government decisions and the trail of investments made in Jagan firms by the alleged beneficiaries of the government largesse.
Several high-profile businessmen, including India Cements managing director N Srinivasan and founder of Matrix Laboratories Nimmagadda Prasad, promoters of pharmaceutical companies such as Aurobindo Pharma and Hetero Drugs and construction major Indu group's chairman I Shyam Prasad Reddy were named as accused in the charge sheets filed by the CBI.
On the government front, about four ministers and over half-a-dozen senior IAS officers were charge sheeted and some were also put behind the bars for a long duration. To date, the CBI has filed 10 charge sheets and a host of supplementary charge sheets in the case.
Jagan was arrested in May last year and has since been in jail following a brief police custody. The chances of courts granting him bail six months ahead of the general elections is keenly watched by all political parties as his party, YSR Congress, is expected to receive a fresh impetus in coastal Andhra and Rayalaseema regions if he comes back into active public life.
