In a landmark judgement delivered on Wednesday severely indicting former chief minister YS Rajasekhara Reddy and his son YS Jagan Mohan Reddy, the AP High Court held that several companies have pumped in 'corrupt money' in the various firms floated by Jagan in return for land allotments made by the then state government. The court ordered for a thorough probe by the CBI into all aspects of the financial misdeeds.

The bench comprising Chief Justice Nisar Ahmed Kakru and Justice Vilas V Afzulpurkar widened  the scope of CBI probe and several ministers in the YSR cabinet who held important portfolios including revenue, industries, IT and irrigation as well as bureaucrats who granted key approvals are likely to come under  its scanner.

The court directed the CBI to investigate in to these charges:
• Former chief minister Y S Rajasekhara Reddy extended huge benefits in the form of allotment of lands, mineral rights, licences, SEZ rights to develop ports all along the eastern coast, permission for star hotels and complexes in and around Hyderabad and other major cities the state.

• Corporates and individuals who benefited from these favours were made to invest kickback amounts into individual and corporate businesses of
Jaganmohan. On account of the quid pro quo arrangement, Jagan’s income rose from Rs 11 lakh in 2004 to Rs 43,000 crore by the time of YSR's demise.

• Jagan and his family defrauded the public exchequer under the clout of YSR and managed transfer of public properties and permissions, leases and licences favouring various companies at throwaway prices in lieu of thousands of crores of kickbacks to Jagan. Beneficiaries of official favours resorted to money laundering by adopting hawala routes through tax haven countries such as Mauritius.

• Quid pro quo arrangement example: Eres Projects Pvt Ltd, promoted by Ramky Group, bought 2,22,222 shares of face value of Rs 10 each for a premium value of Rs 340 each in a Jagan-promoted company in return for allotment of government land at Gachibowli and SEZ land at Visakhapatnam.

• Marutius-based companies invested Rs 125 crore in Sandur Power Company owned by Jagan, the personal auditor of YSR was appointed as the foreign investments nominee in Sandur Power.

• Pioneer Infrastructure Holding Ltd, promoted by Pratap Reddy of Penna Group bought 5,55,555 shares of face value of Rs 10 each at a premium value of Rs 340 each in a Jagan company in return for relaxation of building regulations for construction of a star hotel on Road No 2, Banjara Hills.

•Trident Life Sciences Pvt Ltd belonging to the Hetero Group, was allotted 13,889 shares of face value of Rs 10 each at a premium value of Rs 340 each in a Jagan company in return for allotment of government land for a SEZ at Mahbubnagar.