Hyderabad: Kadapa MP and YSR Congress chief Jagan Mohan Reddy faced a major setback on Saturday when the top investigating agency Central Bureau of Investigation (CBI) filed chargesheet against him, his financial advisor Vijay Sai Reddy and 11 others in the disproportionate assets case in a local CBI court.  

With CBI filing a chargesheet against him in a disproportionate asset case, Kadapa MP Y S Jaganmohan Reddy faces the prospect of arrest, official sources said.

The fresh move of the agency is unlike the earlier allegation of the Telugu Desam Party (TDP) chief N Chandrababu Naidu who had said that the centre was pressing the CBI not to include the name of YSR Congress party president YS Jagan Mohan Reddy in the assets case.

Jagan Mohan Reddy has been charged with offences under different provisions of Prevention of Corruption Act. There is no allegation under IPC sections, defence council Ashok Reddy said.

“CBI has charged him with aiding his father," he claimed.

In its 68-page chargesheet, the CBI has cited 263 documents and 66 witnesses.

Jagan Mohan Reddy has been named as the prime accused, followed by Vijay Sai Reddy and suspended IAS officer B P Acharya and Jagati Publications, which runs Sakshi newspaper, as the co-accused.

Vijay Sai Reddy has been charged with offences of criminal conspiracy, cheating and under other provisions of IPC.

In August 2011, the CBI, in its FIR against Jagan Mohan Reddy and 73 others including Vijay Sai Reddy, had alleged that various investors, who are beneficiaries of public properties, licenses among others invested in the companies promoted by Jagan at very high premiums as a quid-pro-quo to the favours doled out by former Andhra Pradesh Chief Minister late Y S Rajasekhar Reddy under his son's influence.

The other accused are Hetero Drugs Director M Srinivas Reddy, MD of Aurobindo Pharma K Nityananda Reddy, former MD of Trident Life Sciences P Sharat Chandra Reddy, suspended IAS officer B P Acharya, then CMD of APIIC, Y Vijayalaxmi Prasad, former Company Secretary of Aurobindo Pharma P S Chandramouli besides Jagati Publications which runs Sakshi TV and Sakshi newspaper.

Jagan's counsel, Ashok Reddy said the charges against him will not hold and liable to be rejected.

In its 68-page chargesheet, the CBI has cited 263 documents and 66 witnesses.

Citing an instance, CBI said Nityananda reddy, Srinivas Reddy in conspiracy with YSR Reddy and Acharya got allotted 75 acres of land each at Jadcherla SEZ without following the rules and regulations for Rs 7 lakh per acre which is much below the rate fixed by the Price Fixation Committee and thereby wrongfuly gained Rs 17.20 crore.

As a quid-pro-quo, some firms invested more than Rs.15 crore in his companies, the agency said.

It alleged that Vijay Sai Reddy, founder Director of Jagati Publications in conspiracy with Jagan fraudulently got the group high valued by a leading rating agency by furnishing false and exaggerated information with an intention to justify fixation of high premium for its share value.

The CBI further alleged that B P Acharya and Y Vijayalaxmi Prasad, abused their official position in extending undue favours to Trident Life Sciences which obtained wrongful gain of Rs 4.3 crore in transfer of 30.33 acres of land and as quid-pro-quo invested Rs 7 crore in Jagati Publications.

According to FIR filed by CBI in August last year, JPPL which was incorporated on June 14, 2006 and accumulated a business loss of Rs 350 crore in four years could get a total investment of Rs 1,246 crore. As on March 31, 2010, JPPL had a paid up capital and share premium of Rs 844 crore invested by various shareholders including the accused companies and individuals.

(JPN/ Agencies)