New Delhi:
Ex-Andhra Pradesh Chief Minister Jagan Reddy and members of his YSR Congress, including Rajya Sabha MP Vijaysai Reddy, have been accused of illegally acquiring 41.12 percent stake in Kakinada Seaport Private Limited (KSPL) and 48.74 percent in Kakinada Special Exports. Zone (KSEZ), at Rs 500 crore in 2020/21, when they were worth over Rs 3,600 crore.
A First Information Report, or FIR, has been filed against the YSRCP boss and his colleagues based on a complaint by Karnati Venkateswara Rao, chairman and managing director of KSPL.
The shares, he alleged, had been 'bought' by the YSRCP leaders – and routed through a company called Aurobindo Realty (now Auro Infra) – through 'cheating, criminal intimidation and conspiracy'.
According to the complainant, Y Vikranth Reddy, son of YSRCP leader YV Subba Reddy, had “asked” him to part with his shares and alleged that this was demanded in the name of Jagan Mohan Reddy, the chief minister at the time.
He claimed that if he did not agree to the transfer of shares, there would be a “wave of criminal cases and vigilance investigations, leading to his arrest and that of his family members”.
“I was also told that they would pay me a nominal amount for the transfer of my shares. All my efforts to convince them proved futile,” Mr Rao alleged in the police complaint.
The FIR also names Sarath Chandra Reddy, a non-executive director of Aurobindo Pharma, who this morning filed a note with the BSE distancing herself, and Auro Infra Pvt Ltd, from ownership or connection with the operations of Kakinada Seaports and Kakinada SEZ. .
“In this regard, we would like to clarify that (neither) Aurobindo Pharma Limited nor its subsidiaries are in any way connected with the ownership or operations of Kakinada Seaports Limited and Kakinada SEZ Limited, including Auro Infra Private Limited,” the company said.
Jagan Reddy is yet to respond to the FIR, but senior YSRCP leader Kakani Govardhan Reddy, the former food processing minister, refuted the allegations and alleged a “political vendetta”.
“It is clear that this is part of a political vendetta… part of a game being played by Chief Minister Chandrababu Naidu (whose Telugu Desam Party defeated the YSRCP in the May elections).”
“If they (Aurobindo Realty) wanted to acquire (the shares), they could have acquired the entire stake and taken control of the port. Why only a partial stake?” he asked, also asking why Mr. Rao, who still has the majority stake, waited nearly five years to file his claim.
Meanwhile, the issue has drawn sharp attacks from the two main opposition parties: the Congress and the Bharatiya Janata Party.
The first charge is led by YS Sharmila, Jagan Reddy's estranged sister. Ms Sharmila has accused leaders of her brother's party of “harassing the port owner to give up his share”.
“This deal has been made for 25 years, and the people of Andhra Pradesh have to pay the energy bills that are going up. The burden will fall on every family. They are going to pay lakhs of rupees because the government has not done this. nothing about this scam,” she told reporters outside parliament.
“Congress demands that at least the central government do something and scrap this deal. An investigation must be conducted and guilty must be punished,” she said, pointing to similar allegations involving the YSRCP and Krishnapatnam and Gangavaram ports.
BJP's CM Ramesh, the Lok Sabha MP from Andhra's Anakapelle, told DailyExpertNews that the allegations against the former prime minister do not come as a surprise.
'When he became prime minister, he threatened so many industries. Kakinada Port is just one of them… I have known this story for five years. He threatened them and said, 'If you don't want to be behind bars, you will transfer the shares.'” Mr Ramesh alleged.
With input from agencies
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