Court says no to de-freezing of Jagan's accounts

A CBI special court on Monday rejected the petitions filed by Y.S. Jaganmohan Reddy's companies challenging the CBI decision to freeze their bank accounts as part of its probe into the alleged disproportionate assets case against the YSR Congress party president.

The CBI, on May 8, had decided to freeze the current accounts of Jagathi Publications (it brings out the Telugu daily, Sakshi), Indira Television (the company behind Sakshi TV) and their sister concern Janani Infra, in the State Bank of India, Oriental Bank of Commerce and Indian Overseas Bank, under Section 102 of the Criminal Procedure Code.

The CBI instructed the banks not to entertain any transactions in these accounts till the investigation into the case was completed.

Jagan's companies challenged the CBI move in the special court, on the ground that the freezing of bank accounts is tantamount to gagging the freedom of the press.

They said the CBI had not given prior notices to them before freezing their accounts. 'It was illegal and politically motivated, as it is evident that the CBI, at the behest of the ruling Congress, sought to create a financial crisis in the media house,' the managements alleged.

But the Hyderabad-based court rejected their petitions and upheld the CBI argument that the freezing of bank accounts was essential to probe into the illegal flow of funds into these companies.