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Tuesday, July 17, 2018

Naidu to approach Centre on YSR’s ‘Satyam route of corruption’

After last week’s unruly scenes in the Andhra Pradesh Assembly,a battery of state Opposition leaders,led by former chief minister N Chandrababu Naidu...

Written by Express News Service | New Delhi/hyderabad | Published: February 19, 2009 11:49:37 pm

After last week’s unruly scenes in the Andhra Pradesh Assembly,a battery of state Opposition leaders,led by former chief minister N Chandrababu Naidu,arrived in New Delhi armed with thick bound volumes containing allegations against Chief Minister Y S Rajashekhar Reddy for distribution to the media. Naidu began his tirade against his successor in a crowded press conference where an audio-visual presentation was arranged as an expose on the “Raja of corruption”. Eventually,a technical snag left the presentation bereft of its visual element and only a loud commentary remained to go through the alleged corporate scams involving YSR and his family.

“If Satyam is the largest corporate scam in the country,the acts of the CM make his’ the largest political scam. Ramajingam Raju has confessed to his misdeeds and gone to jail and now it is the turn of the CM to do so,” Naidu said. After the press meet,Naidu said he and leaders of the TDP,TRS,CPI,CPI(M) will meet the President and the Prime Minister to “expose the manner in which the CM has floated front companies with jet speed and violated a host of Central laws”.

Naidu admitted that till now,they have been able to unearth official records in respect to only three companies owned by YSR’s family — Sandur Power Company,Jagathi Publications and Bharathi Cement Corporation — but charged that these were enough to show the blatant manner in which YSR’s wealth had increased from his declared family income of Rs 41 lakh (in 2003-04 in income tax records) to what he estimated was more than Rs 10,000 crore.

Among the network of family concerns which Naidu spoke about,the fiscal details on Jagathi publications were the most interesting. According to the documents distributed in the press conference,the company,owned by the CM’s son,Jagan Reddy,was incorporated in 2006 with a share capital of Rs 50 lakh. It was first pumped with funds from Jagan’s other company,Sandur Power Company,and then from 14 Kolkata-based companies who invested Rs 42.50 crore. Naidu said,“all these firms have little worth of their own,they run from the same building and have the same directors. This is the ‘Satyam route’ of corruption.”

Reacting to Naidu’s allegations,the Congress Legislature Party in Hyderabad on Wednesday dismissed all the accusations and instead,accused Naidu of committing fraud in his family-owned company,Heritage Foods Limited,and sought a CBI inquiry. The CLP listed more than a dozen allegations against Naidu. Reacting to Naidu’s decision to appraise the President of the Satyam scam,the CLP sent a representation to the President alleging that Naidu was involved in “illegal insider trading,fraudulent land deals,selling of inflated shares using fictitious companies in Heritage Foods Ltd”.

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