The Andhra Pradesh forest department has alienated reserve forest land for Penna Cements, even as the company is being investigated by the CBI in the assets’ case of Kadapa MP Y.S. Jagan Mohan Reddy. It has allotted 1.85 hectares of land in Saidulanama reserve forest at Ganeshpahad in Damacherla in Nalgonda district to Penna Cements of the Penna group for the construction of railway facility on the premises.
The proposal for the diversion of the land was submitted by the state principal chief conservator of forests. The ministry of environment and forest has also given conditional approval for 20 years.
A forest official requesting anonymity revealed, “The Penna group is facing allegations of investing in the firms belonging to Mr Jagan Mohan Reddy as a quid pro quo for getting certain benefits from the YSR government. The CBI is probing the case and is yet to file a further chargesheet. The department has now diverted land, that too in a reserve forest area, for the company in question.”
The Penna group is named as Accused No. 13 and the promoter and MD of Penna Cements, Mr P. Pratap Reddy, as Accused No. 15 in the FIR in the assets’ case of Mr Jagan Mohan Reddy. It is further alleged that Penna Cements had invested Rs 23 crore in Carmel Asia Holdings, one of the firms belonging to Mr Jagan Mohan Reddy and, in return, the company was allotted land in 2008 by the revenue department. In 2008, Penna Cements was granted a prospecting licence for limestone mining in over 304 hectares in Kurnool district by the industries and commerce department.