Home » Hyderabad » Probe all those investing with Jagan: High Court

Probe all those investing with Jagan: High Court

Posted by on August 10, 2011 0 Comment

Hyderabad: In a major setback to YSR Congress Party president YS Jaganmohan Reddy, the state High Court on Wednesday directed the Central Bureau of Investigations to inquire whether investors pumped in money with the Kadapa MP to earn favours from the state government.

A Division Bench of the High Court, comprising of Chief Justice Nisar Ahmed Kakru and Justice Vilas V Afzalpurkar directed the CBI to register cases against all the investors who invested in the companies promoted by Mr Jaganmohan Reddy and prove if these investments were made in order to gain undue favours.

The Division Bench further said that the inquiry should cover not only the stated purpose in the writ petitions, filed by Minister P Shankar Rao and TDP leader K Yerrannaidu, but cover other areas which have a direct or indirect participation in the irregularities.
The Division Bench said that the abnormal performance of the companies, reflected by their phenomenal growth trajectory, must be looked into. The Court also directed the CBI’s corporate wing to probe into the abnormal performance and said that the body is quite well equipped to do so.

Earlier, the High Court had ordered the CBI to conduct a preliminary inquiry into the amassing of wealth by Mr Jaganmohan Reddy. Based on the report of the CBI’s preliminary inquiry, the Division Bench said that the CBI must conduct a full-fledged probe into the investments made into Jagathi Publication.

Besides this, the Bench also ordered the CBI to probe into the alleged irregularities of allotment of lands to Emaar Properties.

Meanwhile, welcoming the High Court’s ruling, the YSR Congress party said that it has nothing to fear and Mr Jaganmohan Reddy will emerge clean from the allegations.

In a statement, the YSR Congress party further said that it is yet to receive copies of the Court’s judgement and will evolve a future plan after going through it.(INN)

No comments yet... Be the first to leave a reply!

Leave a Reply