The week ahead could spell more trouble for former Kadapa MP, Mr Y.S. Jagan Mohan Reddy.
The CBI is all set to undertake a detailed probe into the observations made by the Income-Tax department. It will also take into account its own findings in the preliminary inquiry into the MP’s alleged illegal assets.
The CBI is also likely to issue an FIR on Monday or Tuesday. It is to form a multi-disciplinary investigation team comprising financial experts and investigators from different agencies to probe into the case, which bears similarities to the Satyam fraud probe.
I-T reports said that the firms bought shares at 35 times their value at a huge premium amount. This may ‘have derived some form of benefit or a hope for benefit to be derived in future by association with the key management personnel’.
The proximity with the promoters of Jagati Publications Private Limited, indicates that these companies are likely to benefit from the growth of the investing personnel or company or associate group concerns.
‘In order to arrive at the total picture it is essential to consider the benefit derived by the group companies relating to other investors rather than search for immediate benefit to the investment company. There may be no direct nexus or benefits derived by the other investors but there can be benefits derived by any member of their group or key management personnel of their group or associate concerns. Thus the main reason for investing in share permits is the benefits derived or derivable, directly or indirectly, through association of the key management personnel,” the report said. Deccan Chronicle