Jaganmohan Reddy assets case: Investment done by India Cements is bribe, ED tells court

HYDERABAD: The Enforcement Directorate (ED) probing into the India Cements episode of YS Jaganmohan Reddy assets case has contended that Rs 140 crore made as investment by N Srinivasan and his India Cements company in various firms were proceeds of crime, made on the basis of high share value projected by Jagan firms.
The investments in 2007-2008 were made in Bharati Cements, Jagathi Publications and Carmel Asia Holdings, the Enforcement Directorate said.
Opposing quash pleas filed by India Cements and its MD Srinivasan, the Enforcement Directorate said a running firm like India Cements, which is one of the major players in the cement industry, bought shares of Bharati Cement, which was yet to commence operations, at 1300 per cent higher value, indicating that it was not an investment but bribe it paid for benefits it derived unduly from Andhra Pradesh government during the chief ministerial tenure of Jagan’s father YS Rajasekhara Reddy.
India Cements, according to the chargesheet filed by the Central Bureau of Investigation (CBI), in the same case derived benefits like land, limestone allotments, additional water allocations, etc. In turn, it made huge investments in Jagan firms and the CBI is calling it a quid pro quo arrangement.
The Enforcement Directorate, in its counter, also said that India Cements sold the shares it acquired in Bharati Cements to a French company for Rs 121 crore and re-invested the same in Jagan’s firms.
The Enforcement Directorate, however, said in another para in the same counter that India Cements used this Rs 121 crore to clear its loans borrowed from HDFC bank, etc. The high court posted the case to April 15 for further hearing.