The CBI has alleged that funds into Kadapa MP Y.S. Jagan Mohan Reddy’s Jagati Publications had been routed through four sub-contractors of Ramky Infrastructure Company though they did not actually do any contract work.
The CBI has alleged that chairman of Ramky Group, Mr A. Ayodhya Rami Reddy, had invested in Jagati through two companies owned by his relatives in return for favours received.
Funds were pumped into Jagati Publications through M/s TWC Infrastructure Private Limited and M/s ERES Projects Private Limited. The money was allegedly provided by Mr Ayodhya Rami Reddy and routed into the companies through various means. The CBI has alleged that Mr Ayodhya Rami Reddy pumped funds into TWC Infrastructure through four persons who were said to be sub-contractors of M/s Ramky Infrastructure Limited but who had never done any work.
The CBI said that Mr Ayodhya Rami Reddy gave cheques worth more than `2.22 crore to Mr M.V. Koteswara Rao, Mr N. Shankar Reddy, Mr K.M. Reddy and Mr V. Rosamma, for executing works which were never done. Subsequently, the four invested `2 crore in TWC which then bought 55,555 shares in Jagati Publications.
The CBI has stated in the chargesheet that Mr M. Sambasiva Reddy and Mr Alla Venkata Reddy who are directors of TWC, are related to Mr Ayodhya Rami Reddy.
Similarly, another `8 crore was diverted into Jagati Publications through ERES. Ramky Estates and Farms Private Limited paid `8 crore to ERES towards land advance and the same was diverted into Jagati Publications on the same day, February 14, 2008.
The directors of ERES are Mr Evuri Srinivas Reddy and Mr Evuri Rajasekhara Reddy who are also relatives of Mr A.R. Reddy.
The CBI has provided a detailed flow chart of the then chief minister Y.S. Rajasekhara Reddy’s decision with regard to the Green Belt in Pharma City at Parawada where Ramky was allotted land, wrongful gain in the Green Belt and investments by Ramky Group through TWC and ERES as part of the quid pro quo arrangement. The third chargesheet alleged Mr Ayodhya Ram Reddy had fraudulently got approval for the layout plan of Ramky Pharma City with provision of only 59 acres as green belt as against 973 acres as was required in the Master Plan.
This land in the green belt inside Pharma City was developed and plots were built and sold.