Jagan assets case: how BCCI chief's cement firm got favours

CBI chargesheet says India Cements invested Rs 140 crore in Bharati Cements, owned by Jagan, for water allocations, limestone mining lease

By M Suchitra
Published: Wednesday 11 September 2013

The Central Bureau of investigation (CBI), which is probing YSR Congress chief Y S Jaganmohan Reddy’s disproportionate assets case, named N Srinivasan, vice chairperson and managing director of India Cements Limited (ICL) and two senior IAS officers in Andhra Pradesh as accused. Apart from India Cements, Penna Cements and Bharati Cements (owned by Jagan) have also figured as accused in three separate chargesheets filed by the investigating agency on Tuesday. Srinivasan is the president of the Board of Control for Cricket in India (BCCI).

The agency has accused India Cements and Penna Cements of getting additional water allocations, mining and other concessions during the tenure of late Y S Rajasekhara Reddy, Jaganmohan’s father, as chief minister of the state. The CBI had disclosed that Jaganmohan, member of Parliament from Kadapa, accepted Rs 1,172 crore from various investors as bribe and in turn helped them get favours from the state government. Subsequently, Jagan was arrested on May 27 last year and he is still behind the bars.

India Cements has been accused of investing about Rs 140 crore in Bharati Cements and Jagati Publications, owned by Jagan, allegedly for getting additional water allocations for its units in Andhra Pradesh. The company was allocated 13 million cubic feet of water (one cubic foot equals 28.3 litres) from Kagna River in Ranga Reddy district. Besides, permission was given to draw 100,000 gallons (one gallon equals 3.8 litres) of water a day from the Krishna river in Nalgonda district. The company has also received a limestone mining lease for 25 years in Kadappa district. For doling out these benefits, the YSR government issued three government orders (GOs) between 2008 and 2009, says the chargesheet.

Similarly, the CBI chargesheets say that Penna Group, promoted by G Pratap Reddy, had invested Rs 45 crore in Jagati Publications and Rs 23 crore in Carmel Asia, both belonging to Jagan. In return, Penna Cements was allocated a lease for mining limestone in 231 acres (one acre equals 0.4 hectare) in Anantapur district, prospective mining license for 760 acres (304 ha) limestone mines in Kurnool district and transfer of limestone mines originally allotted to Walchand Cements in Ranga Reddy district. According to the investigating agency, the state government issued four GOs in 2008 and 2009 for favouring the company. As for Bharati Cements, it has been pointed out that the state government has gone out of the way in helping the company.

In all the three chargesheets, Jaganmohan and his financial advisor Vijaysai Reddy have been named accused No. 1 and 2. Srinivasan is  accused number three in the ICL charge-sheet. The two IAS officers who figure in this chargesheet are M Samuel and Aditya Nath Das.

There are 26 controversial GOs issued during YSR regime which are under the CBI scanner. Though CBI has filed six chargesheets and named 25 officials and industrialists as accused in the case, not a single minister has figured in the three chargesheets filed yesterday. So far, the agency has filed eight chargesheets in the case. It is expected to file three more charge-sheets in a couple of days. In March last year, the Supreme Court had directed the CBI to extend investigation to six ministers, eight senior bureaucrats for their alleged roles in issuing the controversial GOs that helped Jaganmohan amass disproportionate wealth.


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