The Andhra Pradesh high court on Wednesday ordered the Central Bureau of Investigation to register a case against YSR Congress chief and Kadapa MP, Mr Y.S. Jagan Mohan Reddy, and his associate companies including his investors.
The high court directed the CBI to register the case under the provisions of the IPC, Prevention of Corruption Act, and Prevention of Money Laundering Act apart from criminal conspiracy.
While disposing two petitions by the textile minister, Dr P. Shankar Rao, and the Telugu Desam’s Yerrannaidu and others, a division bench comprising Chief Justice Nisar Ahmad Kakru and Justice Vilas V. Afzulpurkar pointed out that the investments made in Mr Jagan Mohan Reddy’s companies were nothing but a form of corruption that attracted Section 3 of the Prevention of Money Laundering Act.
Referring to the allegations of Dr Shankar Rao and the TD leaders, the bench pointed out that prima facie it had emerged from records that from May 2004 onwards, Mr Jagan Mohan Reddy had floated a number of companies in which investments had been made in exchange of benefits from the government in various forms like SEZs, irrigation contracts, relaxation and permission for real estate ventures, mines etc.
The bench observed that Mr Jagan Mohan Reddy was directly or indirectly connected with some of the companies which were showing phenomenal growth and these facts made it necessary to ascertain the role of individuals, firms and public servants.
The bench also refused to furnish a copy of the CBI’s preliminary enquiry report as had been sought by Mr Jagan Mohan Reddy and made it clear that it had not relied on the report but on other material available.
“Prima facie we are satisfied that there are violations of the provisions of the IPC, Prevention of Corruption Act, Prevention of Money Laundering Act apart from criminal conspiracies and commission of other related offences involving huge investments by local and foreign companies,” said Justice Kakru.
The court was of the opinion that to unearth the truth, a well-equipped and specialised agency having expertise to handle such situations was required to investigate into the allegation and the CBI would be the most appropriate agency for it.
Justice Kakru added that the material available with petitions supported a thorough probe and investigation into all the aspects of the financial misdeeds and the government’s largesse.
The bench also turned down the argument of Mr Jagan Mohan Reddy that the petitions were politically motivated. It said that the grievance urged in the petitions highlighted that a method had been devised for the systematic swindling of the state exchequer by parting with government land through allotments by favouring a selected group of companies at throw-away prices and added that with such glaring illegalities, dismissal of the PIL on grounds of political motivation could not be allowed. Justifying the decision of the court, Justice Kakru said that the court had allowed Dr Shankar Rao’s plea to survive in the greater public interest and had appointed an amicus curie, keeping Dr Rao out of picture.
“We have neither sought any kind of assistance nor allowed him to participate in the proceedings of the court,” the bench averred in its 49-page judgement.
Citing the apprehensions of the companies and investors, the bench also made it clear that “we are sure that the investigating agency will appropriately segregate the genuine investors from others in the sweep of the investigation”.