The Central Bureau of Investigation, which is probing YS Jaganmohan Reddy’s disproportionate case told the CBI special court as to how Jagan procured large amounts of money for starting up his businesses including Jagathi Publications. The CBI told the court that YS Rajashekara Reddy  government allotted 15,000 acres land in Guntur and Prakasam district to Vanpic port promoted by the business tycoon Nimmagadda Prasad. Citing these reasons, the CBI sought the custody of Nimmagadda, who was arrested on Tuesday.

When YSR government allotted 15,000 acres land to Nimmagadda Prasad, the latter invested in Jagathi Publications, Silicon Buildersm Sandur Power and Bharathi Cements (which belonged to YS Jaganmohan Reddy) as quid pro quo arrangement. Notably, the allotment of land to Prasad has violated the Stamp and Registration Act.

The CBI has also told the court that Nimmagadda Prasad has invested Rs. 854 crore in the companies that were run by Y S Jaganmohan Reddy.  Although the former disposed the investments in latter’s companies, the CBI found out that Rs. 505 crores were still invested some companies including Jagathi Publications.

Meanwhile, CBI has also said that Prasad suspended the works of Matrix Enport Holdings, which entered into an agreement with RAK Investment Authority to implement Vanpic Project. CBI even mentioned that the state government run by YSR then allotted 15,000 acres land for the project only after the company run by Prasad came into the scene.

(Phani)