Ponnala quizzed by CBI over GOs during YSR rule

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Information Technology Minister Ponnala Lakshmaiah was grilled by the CBI at their office in Koti for more than eight hours on Thursday over the government orders issued when he held the portfolio of major irrigation in the late chief minister Y.S. Rajasekhar Reddy’s cabinet. The CBI also summoned senior IAS officer Adityanath Das, who earlier handled the subject of irrigation.

The investigating agency also summoned officials from the Secretariat, irrigation and CAD department requisitioning note files. Representatives of Bharati Cements and India Cements were also grilled. Mr Lakshmaiah was summoned by the CBI in connection with its probe into the Jagan Mohan Reddy illegal investments case. Six ministers and eight IAS officers were involved in issuance of 26 controversial GOs. Mr Lakshmaiah reached the CBI office around 11am. It was during Mr Lakshmaiah’s tenure that the then government had issued orders allocating three lakh gallons of water a day from the Krishna and 13 million cubic feet annually from the Kagna river to India Cements.

It is believed that India Cements had sought to double its production capacity and hence needed water from Kagna and Krishna rivers. The GOs pertained to allocation of water from the Kagna and Krishna rivers to the manufacturing plants of India Cements in Rangareddy and Nalgonda districts respectively. Incidentally, India Cements had invested Rs 15 crore in Raghuram Cements, renamed Bharati Cements after its acquisition by the Kadapa MP Y.S. Jagan Mohan Reddy, and Rs 5 crore in M/s Carmel Asia Holdings.

Meanwhile, Jagan Mohan Reddy’s five day CBI custody ended on Thursday. He was questioned on Day 5 pertaining to his role in the allegations of quidpro quo deals in India Cements, Penna Cements and Bharati Cements. Jagan Mohan Reddy’s judicial custody comes to end on June 11.

Srikakulam collector next in line
Chief Minister N. Kiran Kumar Reddy had sanctioned prosecution agai-nst B.P. Acharya while denying the same for Tirumala Tirupati Devasthanams executive officer L.V. Subrahmanyam, though officials had recommended that he deny sanctions for both. In IAS official Y. Srilakshmi’s case too, the Chief Minister had differed with officials who had argued that the CBI had failed to provide material in support of its charges of criminal conspiracy against the bureaucrats.

Mr Kiran Kumar Reddy has now created a record of sorts by approving prosecution of two IAS officials. He will now need to take a decision regarding another IAS official, Srikakulam Collector G. Venkataram Reddy, who is facing CBI probe. The collector has been named as an accused in the investments case of Kadapa MP Y.S. Jagan Mohan Reddy for allegedly extending favours to the Ramky Group and the CBI has sought the state’s permission for prosecuting him.