In a first-ever political fallout from the ongoing investigation into the alleged quid-pro-quo deals of Kadapa MP YS Jagan Mohan Reddy, the Central Bureau of Investigation (CBI) on Thursday arrested Cabinet minister Mopidevi Venkataramana Rao for his alleged involvement in the land alienation and other favours made to the promoters of Vadarevu and Nizampatnam Port and Industrial Corridor (Vanpic) project.
Last week, on May 16, the investigative agency had arrested Nimmagadda Prasad, the founder of Matrix Laboratories and the original Indian partner of Vanpic project, along with a government official.
Minister Venkataramana, currently holding the excise portfolio, was the minister for infrastructure and investment (I&I) that had handled the issues of the Vanpic project, including the issuance of relevant orders in the YS Rajasekhara Reddy government. The minister is being charged under various sections of the Indian Penal Code (IPC) and Prevention of Corruption Act.
The minister had been questioned for the whole day yesterday in front of the other two accused by the CBI, which asked him to appear before it again on Thursday. After a couple of hours of questioning, the CBI officials on Thursday said they were arresting him.
Later in the day, the minister was produced before the special CBI court, which sent him for judicial remand till June 7, also gave police custody of the accused to CBI for five days starting tomorrow. The CBI, in its custody petition, said that the minister was responsible for the deviations found in the concession agreement signed for the development of Vanpic project and misused his power causing loss to the government.
"The accused committed offenses punishable under sections 120-B read with (r/w) 409; 420 IPC and 13(2) r/w 13(c) & (d) of the Prevention of Corruption Act, 1988, in criminal conspiracy with Sri Nimmagadda Prasad and Sri K V Bramhananda Reddy, IRAS, the then special secretary, I&I department and other public servants and private persons in connection with awarding of Vanpic project and connected issues and caused wrongful loss to the state exchequer and wrongful gain to the private persons," the CBI said in its remand report.
Investigation revealed that in the month of June 2008, Vanpic Ports Private Limited informed the Andhra Pradesh government about the requirement of 28,000 acres of land for the development of the project and also submitted a draft concession agreement, which the minister was aware of. However, the accused approved the Cabinet Memorandum, which did not contain these details, withholding many important aspects related to the project such as the total extent of land decided for the project, the CBI alleged.
The Cabinet accorded permission for awarding the Vanpic project on a build, own, operate and transfer (BOOT) basis whereas the concession agreement approved by the minister and submitted along with the Cabinet Memorandum contains provisions making the allotment of ports on a BOOT basis, whereas the industrial corridor on a build, own and operate (BOO) basis, the CBI further stated.
The remand report also highlighted other aspects mentioned in earlier instances, including facilitation for dilution of Ras Al Khaimah's share to 26 per cent, granting several concessions, issuance of government orders for land alienation among others. While explaining the role of the minister, the CBI alleged that during this period the then chief minister YS Rajasekhara Reddy had doled out many favours in the form of awarding the Vanpic project; shipyard, a green-field airport, and various undue concessions to the project.
Minister sends resignation letter
After the arrest, the minister sent in his resignation to chief minister N Kiran Kumar Reddy. The Opposition parties demanded immediate removal of the remaining five ministers in whose tenure the decisions allegedly benefiting Jagan were made. The minister's followers in his native district resorted to stone-pelting and damaged public and private properties following the arrest of their leader.
His arrest is seen as a prelude to the likely arrest of Jagan, the prime accused in this case who was asked by the CBI to appear before the investigative team tomorrow (May 25). The CBI special court on Thursday refused to grant anticipatory bail to Jagan, who was earlier summoned to appear before the court on May 28.
Police have made extensive security arrangements, including clamping of section 144 in the city of Hyderabad as a precautionary measure to contain law and order problems in the event of his likely arrest in the following days.
Venkataramana is one of the six ministers in the YSR government responsible for issuing 26 government orders (GOs) identified by the CBI as the source of quid-pro-quo deals benefiting Jagan and his firms. Incidentally, all the six of them are currently the members of the state Cabinet. The Supreme Court had issued notices to all of them, including eleven senior IAS officers, in connection with their involvement in these decisions in response to a petition. which had alleged that these people were being intentionally excluded from the investigation.
The CBI, in its remand report pertaining to the recent arrests, alleged that Prasad invested about Rs 854 crore in companies belonging to Jagan as a quid-pro-quo for the benefits received from the government headed by the then chief minister Y S Rajasekhara Reddy. This related to the proposed development of a large integrated and industrial corridor project called Vanpic in the two coastal districts of Guntur and Prakasam.
The government had signed an MoU with the Ras Al Khaimah government for the development of the Vanpic project, in which Nimmagadda Prasad-promoted Matrix Enport Holdings Private Limited has been the Indian partner.
The CBI launched an investigation in Vanpic and a host of other deals after it was directed in August last year by the AP high court in a petition against Jagan’s assets.
