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The Enforcement Directorate (ED) has attached India Cements' assets worth Rs 118 crore and properties of other companies in a quid pro quo investments case filed against Andhra businessman-politician Y S Jagan Mohan Reddy and several firms.
A couple of years ago, the Central Bureau of Investigation (CBI) had filed a charge sheet against India Cements managing director N Srinivasan, accusing him of paying bribes to Jagan Mohan Reddy in the guise of investments as quid pro quo for the undue favours received by his company from the Andhra Pradesh government when his father was the chief minister.
Based on the charge sheet, the ED had registered a money laundering case against Jagan and others under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
"Investigations revealed that Carmel Asia Holdings Private Limited, Jagati Publication Limited, Bharati Cement Corporation Private Limited (All promoted by Y S Jagan Mohan Reddy) and the India Cements Limited has laundered the proceeds of crime in the form of investments," ED joint director K S V V Prasad said in a statement on Thursday.
In all, the ED has made a provisional attachment of properties valued Rs 232.28 crore, held by five companies --Janani Infrastructure Limited, Bharati Cements, Jagati Publications Private Limited, Carmel Asia Holdings Private Limited and the India Cements Limited-- of which there were five immovable properties valued at Rs 6 crore and 24 movable properties of value Rs 226 crore.
These include three assets owned or held by India Cements, namely a constructed building located in Hyderabad, 245.86 acres of land located in Anantapur district and over 9.66 million shares of face value of Rs 100 of Trinetra Cements Limited (Rs 96.67 crore), according to the ED.
The fixed deposits of Rs 95.33 crore held by Bharati Cements was the other major asset in the provisional attachment.
Several small land parcels registered in the name of Janani Infra, which were attached by the ED, are properties where the printing and other facilities were developed for Sakshi Telugu daily owned by Jagati Publications. One of these properties was located in Bangalore city.
A share application money worth Rs 3.20 crore and 2.5 lakh shares worth Rs 25 lakh of Indira Television, both held by Carmel Asia Holdings, also figured in the provisional attachment list declared by the ED.
