The High Court’s direction to the CBI to conduct preliminary inquiry into the alleged accumulation of illegal wealth by the YSR Congress chief Mr. YS Jaganmohan Reddy has had its first adverse affect on the corporate world.

Mr Nimmagadda Prasad-led Matrix Enport, which got the Vanpic project in collaboration with Ras al Khaima group of the UAE under the government-to-government model, has sold off its majority stake to the Navayuga group.

Vanpic is the mega infrastructure project of the Vadarevu and Nizampatnam Ports Industrial Corridor and the reason for Nimmagadda Prasad to come out of the project is said to be the controversy surrounding his investments into the business and industrial group led by Jagan.

It might be mentioned that Matrix group came under the CBI scanner for its investments in the Sakshi Media House and Bharati Cements owned by Jagan. Mr Prasad has already submitted a letter to the concerned government officials about the selling of the majority stake to the UAE group, according to sources.