ED seizes Rs 863-Cr assets of Jagan, Nimmagadda

NEW DELHI: In one of the biggest attachment orders in money laundering cases in the country, the Enforcement Directorate (ED) on Wednesday attached assets worth `863 crore belonging to YSR Congress Party chief YS Jagan Mohan Reddy, industrialist Nimmagadda Prasad and their companies terming them 'proceeds of crime.'

The provisional attachment order against the properties in the name of Jagan's companies Carmel Asia Holdings Pvt Ltd and Jagathi Publications Ltd as well as Prasad and his companies, G2 corporate Services Ltd, Alpha villas Pvt Ltd, Alpha Avenues Pvt Ltd, Gilchrist Investment Pvt Ltd, Suguni Constructions Pvt Ltd and Beta Avenues Pvt Ltd, was issued under Section 5 of the Prevention of Money Laundering Act and relevant Sections of the IPC.

The ED said the accused had hatched a criminal conspiracy to clear controversial Vadarevu and Nizampatnam Ports and Industrial Corridor (VANPIC) project - ostensibly for development of the two sea ports at Vadarevu and Nizampatnam and a port-based industrial corridor in Prakasam and Guntur districts.

The ED said various concessions were extended to the VANPIC project like allotment of government land to the companies floated by Nimmagadda Prasad in violation of rules, development of shipyard, green field airport, exemptions from levy of stamp duty and registration charges, seigniorage fee and other undue benefits.

The ED also alleged that the late YS Rajasekhara Reddy, during his stint as chief minister of Andhra Pradesh, abused his office to benefit his son. The ED claimed Jagan had floated a number of companies wherein quid pro quo investments have been made by the companies favoured by the then State government.

The chargesheet filed by the CBI has claimed illegal gain to the tune of Rs 1426.17 crore was extended to Prasad in the acquisition of lands and in turn Prasad and his companies made quid pro quo investment worth Rs 854.54 crore.

The attached properties are shares, plant and machinery worth Rs 365.45 crore and fixed deposit receipts of Rs 4.14 crore of Jagati Publication Public Ltd (JPPL), shares of Indira Television Pvt Ltd., (subsidiary of Jagati Publication) for Rs 100.44 crore, properties of Jagan Mohan Reddy amounting to Rs 11 crore, shares of Sandur Power Co Ltd held by Jagan worth Rs 57 crore, shares of Sandur Power Public Ltd. of Rs 35 crore and immovable assets of Rs 2.55 crore held by Nimmagadda Prasad, shares of JPPL held by Alpha Avenue of Rs 97.81 crore, share of JPPL held by Alpha Villas of Rs 35.89 crore, share of JPPL held by Gilchrist Investment Ltd of Rs 44.78 crore, land of `5.80 crore owned by G2 Corporate Services Pvt. Ltd., shares of Silicon Builders Pvt. Ltd. held by G2 Corporate Services Pvt. Ltd. of Rs 44.20 crore, shares of Silicon Builders Pvt. Ltd. held by Suguni Constructions Pvt. Ltd of Rs 7 crore, lands of Rs 23.23 crore, area 561.20 acres held by VANPIC Ports Ltd. and lands of Rs 27.72 crore, area 855.71 acres held by VANPIC Projects Ltd.