CBI finds lapses in Prasad deals

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The CBI in its remand report has alleged that the concession agreement signed between the state government, represented by K.V. Brahmananda Reddy, and Vanpic Ports Private Limited, represented by Nimmagadda Prasad, was not in consonance with the one approved by the Cabinet and contained several errors and lapses.

The CBI has also alleged that Mr Prasad exaggerated the total expenditure towards payments to land owners as Rs 450 crore against actual payments of only Rs 150 crore. “The final destination and beneficiaries of Rs 300 crore are to be ascertained,” CBI SP H. Venkatesh said in his report.

CBI probe revealed that Mr Prasad had invested Rs 854 crore in companies belonging to Kadapa MP Y.S. Jagan Mohan Reddy — Carmel Asia, Bharati Cements, Jagati, Silicon Builders and Sandur Power. While he disposed some of the investments, he still has Rs 505 crore left in the firms. The major deviation that the CBI found was that the accused had diluted the equity structure in the agreement.

While the MoU had envisaged that foreign partner RAK would invest 51 per cent, which formed the base for the state to award the project, in the concession agreement it was stated that RAK’s equity should not be less than 26 per cent. This paved way for the state firms and Navayuga became the major equity holder.

Arrests give the jitters to honchos
The arrest of Vanpic Group of Companies’ chairman Nimmagadda Prasad has got top industrialists in the state named in the CBI FIR and chargesheets in the Jagan assets case worried. The CBI had so far only filed chargesheets against investors in Kadapa MP Y.S. Jagan Mohan Reddy’s companies. Mr Prasad is the first to be arrested. Other leading businessmen who are under the Bureau’s scanner are P. Pratap Reddy of Penna Group, Potluri Vara Prasad of PVP Ventures & Group companies, I. Shyam Prasad Reddy of Indu Projects, Ayodhya Rami Reddy of Ramky Group, Nityananda Reddy of Aurobindo and Srinivas Reddy of Hetero.