Jagan’s aide Vijay floated firms to park ill-gotten money: CBI

Seeking his 14-day police custody,the central agency filed a petition stating that Vijay Sai,vice-chairman of Jagati Publications Pvt Ltd (JPPL),facilitated the transfer of bribe money through various companies of JPPL.

“He (Vijay Sai) is kingpin behind the entire conspiracy in accommodating the ill-gotten money by floating fictitious and non-existing firms. He is also aware of the names of persons/individuals who were shown as Director of the non-existing firms/ companies,” the CBI alleged.

In its FIR against Jaganmohan and 73 others including Vijay Sai,the CBI alleged that various investors who are beneficiaries of public properties,licences among others

invested in the companies promoted by Jagan at very high premiums as a quid-pro-quo to the favours doled out by former Andhra Pradesh Chief Minister late Y S Rajasekhar Reddy on his son’s (Jagan’s) influence.

CBI said that investigation revealed that Vijay Sai got valuation of Jagathi Publication Private Limited (JPPL) done in April 2008 pre-dated to November 2007 to justify the investments already made by several companies in JPPL as quid-pro-quo for the favours received by them from Andhra Pradesh government.

CBI further said that Vijay Sai Reddy in criminal conspiracy with Jaganmohan Reddy,to route the ill-gotten amounts,urged certain ‘suitcase’ companies (carrier companies created for the purpose of carrying hidden investments) to route the amounts as investments into JPPL.

Accordingly,such suitcase companies and individuals submitted their applications for allotment of shares at a premium of Rs 350 during July 2007.

“Investigation disclosed that these investments were the bribes given by various companies to Jaganmohan Reddy at the instance of Vijay Sai and in return these companies received various benefits as quid-pro-quo from AP government,” CBI

claimed.

Vijay Sai knows the persons involved in the scam and the modus operandi of the illegal transactions done by other accused persons which he was not revealing despite being questioned several times,the CBI said.

The CBI further said that during 2007-08 Jaganmohan Reddy,who joined Sandur Power Company Limited (SPCL) had created fictitious transaction of selling 82 lakh shares of SPCL to five companies. However investigation revealed that most of the investors of these five companies were not in existence at the addresses shown in the record of the companies.

Meanwhile,CBI further said the intelligence gathered revealed as per declaration of Luxembourg-based Asia Infrastructure Sicar,its beneficial owner is Whitehall Associates. However it is also likely that the real beneficial owner of Asia Infrastructure Sicar may be the then Chief Minister of Andhra Pradesh (late Y S Rajasekhara Reddy) and his son Jaganmohan Reddy.

Details of these transactions are known to Vijay Sai Reddy which he did not reveal,the CBI said in its petition seeking his custody.