Hyderabad: Central Bureau of Investigation sleuths probing into the illegal assets case against companies of the Kadapa MP, Mr Y.S. Jagan Mohan Reddy, on Saturday served notices to major investors Hetero Pharma, Matrix Labs and the Ramky Group asking for reasons behind their buying shares of Jagati Publications Private Limited at huge premiums. Notices were issued to 15 companies who are major investors. The companies have been asked to reply by Monday. Notices are also served to Jagati Publications and Bharati Cements to explain the investments in their companies.
The CBI investigators, lead by joint director, Mr V.V. Lakshminarayana, speeded up the preliminary inquiry probe into the case following directions of the Andhra Pradesh High Court to submit a report in two weeks. The income-tax department had earlier observed that the reasons given by the investors for buying shares at huge premiums in JPPL were incorrect. The companies had bought shares at the rate of Rs 350 per share of JPPL. It has been alleged that they paid huge premiums for the shares because they had received benefits or had hoped for the same as Mr Jagan Mohan Reddy was the son of the then Andhra Pradesh CM.
In its notice, the I-T department alleged that JPPL had suffered losses as on March 2010 to the tune of `319.84 crore and the share capital had consequently eroded substantially. This clearly indicated that the valuation reports were unrealistic, over optimistic and not based on real appreciation of facts.
The department had asked how the promoters, who invested only 20 per cent of the total share capital, could hold 90 per cent of the equity. I-T department said the promoters, JPPL chairman Mr Jagan Mohan Reddy, Mr Harish C. Kamarthy and Caramel Asia Holdings Private Limited held about 7,35,67,800 shares on March 31, 2008 which were acquired by them at the rate of `10 per share with a total investment of Rs 73.56 crore.
The outside share holders (other investo=rs) were allotted 83,47,201 shares representing only about 10 per cent of the total shares held though the total investment made by them was nearly 80 per cent of the share capital and share premium. These outside investors bought the shares at face values of Rs 10 with premiums of Rs 350 per share. The total contribution of the investors was about Rs 300.49 crore of which the share premium component was Rs 292.15 crore. Investigators also observed that on the date of the valuation of report and receipt of funds from the “other investors” there was no significant plant and machinery or other assets of the company. CBI officials also visited the office of AP Industrial Infrastructure Corporation at Parisrama Bhavan in Basheerbagh and scrutinised the documents pertaining to the Emaar deal. Deccan Chronicle