At a time when CBI is conducting raids on Jagan companies, a Chennai based firm disclosed that Jagan Mohan Reddy had inflated value of his companies. The Chennai Based firm, which was commissioned by Jagan Mohan Reddy, claims to have estimated the value of three of the YSR Congress chief's companies at Rs 400 crore.

The valuation report given by Chennai based Jagadisan & Company shows that Jagan's three companies Jagati Publications Pvt Ltd, Indira Television Limited and Janani Infrastructure Pvt Ltd., were initially valued at Rs. 410 crore, with Jagati at 196, Indira Television at 185 and Janani Infrastructure Private Limited at Rs 29 crore.

However, Jagan is believed to have submitted to the I-T authorities that his Jagati Publications alone was estimated by a well-known MNC consulting firm at Rs 3,500 crore and sold the shares of this company at Rs 350 apiece. According to sources, that consulting firm had given only a business plan in which it has displayed a road map for the publication company to becoming the first one in the media to earn operational profits in the first year itself.

The sources also claimed that Jagadisan and Company represented by J Prabhakar have given a written understanding to the Registar of Companies that they have valued these companies based on the information passed on by the companies.