Disproportionate Assets Worth ₹863 crore Belonging to Jagan Mohan Reddy, Associate Seized

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By Rama Mohan | March 7, 2014 1:00 AM EST

In the disproportionate assets case, the Enforcement Directorate (ED) on 5 March issued orders to seize ₹863 crore worth property of YSR Congress Party chief Y.S Jagan Mohan Reddy and his associate, industrialist Nimmagadda Prasad.

The ED's probe is in connection with alleged corruption in a mega infrastructure project in Andhra Pradesh. It is one of the biggest attachments of properties, a statement from the Enforcement Directorate noted. 

The ED termed the amassed wealth as "proceeds of crime," and the assets have been seized under the Prevention  of Money Laundering Act and relevant sections of the Indian Penal Code (IPC). 

The accused, in a criminal conspiracy,  have amassed the wealth during the tenure of late Y.S Rajasekhara Reddy as the Chief Minister of the state,the ED noted.

Jagan is the son of Rajasekhara Reddy. The directorate was probing the allegation that the then AP government under YSR had favoured Nimmagadda Prasad's companies in the Vadarevu and Nizampatnam Industrial Corridor (VANPIC) project. VANPIC's aim was to develop industrial corridors, build sea ports and a greenfield airport in the AP's coastal area.

In 2012, based on a CBI FIR, the ED registered a criminal probe against the duo under the Prevention of Money Laundering Act (PMLA).

Illegal money exchanged hands in the "quid pro quo" deal between the  two conspirators, the ED added.  

"Various concessions were extended to the VANPIC project in the form of alienation of huge chunks of assigned government land to the companies floated by Nimmagadda Prasad, development of shipyard, green field airport, exemptions from levy of stamp duty and registration charges, seigniorage (deed-signing) fee and other undue benefits were extended," a report quoted the ED probe narration.

Based on the CBI's FIR chargesheet, the ED stated that illegal gains to the tune of ₹1,426.17 crore was made to Nimmagadda Prasad in the acquisition of lands and ₹ 854.54 crore was made to Jagan and his companies as quid pro quo by Prasad and his companies. The assets will now be seized, the ED said. 

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