Sandur Power: CBI grills Jagan on investments

                                                                                
The Central Bureau of Investigation (CBI) is stated to have sprung a surprise on Kadapa Member of Parliament Y.S. Jaganmohan Reddy on Monday, second day of the interrogation, by confronting him with documentary evidence on the flow of investments into his Sandur Power Company.

The documents showed the transfer of money totalling Rs. 124 crore into Sandur from Mauritius-based companies 2i Capital and Pluri Emerging. But Mr. Jagan is said to have replied that he had sold the shares to the companies and bought them back at a premium as they fetched a profit. It was another day of marathon interrogation till 5 p.m.

The CBI team produced the documents relating to Sandur to try and establish that Mr. Jagan was indulging in money laundering. Sandur was incorporated in Karnataka to carry on the business of generation and distribution of power and was taken over by Mr. Jagan from its promoters in June 2001.

The company was involved in its regular business till 2004 but started inviting investments after his father became Chief Minister. Industrialist Nimmagadda Prasad invested Rs. 140 crore by buying 21.42 lakh shares of the company at the rate of Rs. 650 a share. In a project whose net worth was not more than Rs. 150 crore, Mr. Jagan raised investments to the tune of Rs. 797 crore, creating doubts. Those in the know of things said that although the Directorate of Enforcement was keenly looking into the ‘money-laundering' and alleged violations of the Foreign Exchange Management Act, the CBI's focus was on tracking the flow of funds into Mr. Reddy's companies and establishing the ‘quid pro quo' angle.

Meanwhile, Mr. Jagan was interrogated at the CBI office at Kothi on Monday unlike on Sunday when he was taken to the Officers' Mess in Malakpet. It came as a surprise to most city police officials who were providing logistic support as it was kept a secret till the last moment.

Security personnel had to spend some anxious moments as the convoy in which Mr. Jagan was being brought to Kothi was caught in a traffic jam at Nalgonda Crossroads .
from Hindu