Who is Sarath Chandra Reddy, arrested by ED in the Delhi liquor policy case?

Reddy had earlier been questioned twice by the central agency in the case in which Delhi Deputy Chief Minister Manish Sisodia has been named the prime accused.

Who is P Sarath Chandra Reddy?

P Sarath Chandra Reddy is the son of Aurobindo Pharma founder P V Ram Prasad Reddy and the son-in-law of Aurobindo Pharma’s Managing Director K Nithyananda Reddy. Aurobindo Pharma is a major player in the generic drugs market globally. Sarath Chandra Reddy formerly headed the Trident Life Sciences Ltd, which has been acquired by Aurobindo Pharma. He is now a Whole-Time Director at Aurobindo Pharma. Sarath Chandra’s brother, Rohit Reddy is former Yuvajana Sramika Rythu Congress Party (YSRCP) Rajya Sabha MP V Vijaysai Reddy’s son-in-law.

Sarath Chandra Reddy first came to attention when the CBI mentioned his name in a chargesheet that the agency filed in regard to the disproportionate assets and quid pro quo case filed against Andhra Pradesh CM Y S Jagan Mohan Reddy, and others in 2012.

What is the CBI case against P Sarath Chandra Reddy?

In March 2012, the CBI had filed a case against Sarath Chandra Reddy among others for allegedly receiving favours from the then Dr Y S Rajasekhara Reddy Government in the form of land allotment at low prices, in return for investing in his son Y S Jagan Mohan Reddy’s Jagati Publications Private Ltd.

In the “quid pro quo” case filed against Y S Jagan Mohan Reddy, the CBI has alleged that Sarath Chandra Reddy, when he was MD of Trident Life Sciences Ltd, had issued two authorisation letters in November 2006. This was done in order to execute agreements of sale with AP Industrial Infrastructure Corporation (APIIC) for 30.33 acres of land near Patancheru on the outskirts of Hyderabad, knowing fully well that Trident Life Sciences was not a wholly-owned subsidiary of Aurobindo Pharma, but the majority share-holding was held by K Nithyananda Reddy’s family members.

The land transfer by APIIC, which sold it at less than the market price, allegedly benefitted Trident Life Sciences by Rs 4.3 crores. This land transfer was the second part of the land deal allegedly initiated by Aurobindo Pharma MD K Nityananda Reddy. He had sought 75 acres from APIIC at Jadcherla SEZ which was allotted at Rs 7 lakh per acre, allegedly less than the market price. Sarath Chandra Reddy was charged under IPC sections 120-B (criminal conspiracy) and 420 (cheating).

Allegations of quid pro quo

The CBI chargesheet states that in return for the the land transfer by APIIC, which benefitted Trident Life Sciences by Rs 4.3 crores, Sarath Chandra Reddy invested Rs 7 crores as quid pro quo, in Y S Jagan Mohan Reddy’s Jagati Publications Private Ltd (JPPL) at an exaggerated premium of Rs 350 per share. They also wrote to the APICC to waive off Rs 61.38 lakh towards 10 per cent process free for transfer of the land.

What is the status of the CBI probe?

The CBI has filed 11 chargesheets in the case, starting March 31, 2012. The trial is going on in a special CBI court.