ED to Question Jagan First, Then Attach Assets

According to reliable sources, the Enforcement Department (ED) is first going to question Kadapa MP and YSRCP president YS Jagan Mohan Reddy and then attach his assets. The ED ahs already drawn up a list of assets belonging to Jagan and looking for more, based on the findings of the CBI investigation. Sources said ED officials are likely to question Jagan, who is in judicial custody, before any attachment order is issued. Two ED officials from headquarters in Delhi have arrived in Hyderabad for recording Jagan’s statements. Jagan Mohan Reddy was arrested by the CBI on Sunday in a disproportionate assets case. Besides CBI and ED, he is also is facing probe from the Income Tax department. At least 15 of his companies have come under the scanner that includes Jagathi Publication, Sandur Power Co Ltd, Saraswati Power and a few real estate firms. The ED is looking into foreign investments made into some of these companies. Cases have been registered under both PMLA and Foreign Exchange Management Act. These companies had seen sudden jump in their share values. The probe had revealed that foreign investments made in some of these companies were later diverted to Jagan’s publication in alleged violation of FEMA guidelines. Jaganmohan Reddy first came on the radar of the investigating agency in 2010, soon after his father’s death in a copter crash a year before. The Income Tax department started investigating his wealth when he deposited an advance tax of Rs 84 crore for April-September of 2010-11. This was a huge jump compared to the previous two years when his tax outgo was a paltry Rs 2.92 lakh for 2008-09 and Rs 6.72 crore for 2009-10. The probe revealed that the payments resulted from the sale of a portion of his shares in the familyheld Bharathi Cement Company Ltd. The sale had earned him Rs 416 crore and he was still left with shares worth more than Rs 2,600 crore in the company at that point. Both the CBI and ED later started their probe by registering cases against Jagan and his close aides and companies that had invested in his firms.  

Jagan Day 1 in Chanchalguda Jail

It is natural for any first timer to be a bit nervous to step into jail, but it was not so with YS Jagan Mohan Reddy. He was calm and cool, unperturbed, as if he was on his routine 'Odarpu Yatra'. On Monday, at the entrance of Chanchalguda Central Prison, a cheerful and smiling Jagan greeted the huge contingent of policemen and media persons who were present there. Inside the jail, he continued with the same demeanour, shaking hands with the jail staff and even enquiring about their well being. After completing the formalities, he was sent to the block where special category prisoners are lodged. Jagan was allotted Prisoner No. 6093 and he is the 10th special catogary prisoner lodged over there currently. According to prison sources, Jagan was allotted a special room. Usually special category prisoners have to share a room but an exception was made in the case of Jagan due to security reasons. The room measures 10 ft by 10 ft but it has an attached toilet. He has been provided with a cot and a mattress, which is as per the jail manual. A television set is also in the room that also has a chair and a table, but only Doordarshan channels can be accessed on it. Jagan reached few minutes late to the block and missed his dinner as the lock-up of prisoners starts at 5.30 PM after dinner. However in the morning, he can have khichdi or upma for breakfast, if he wants to give it a try. For that he has to wake up early in the morning and get ready by 6.30 am. But being a special category prisoner, Jagan does not really have to stick to any schedule. At a separate kitchen provided exclusively for special category prisoners, Jagan can get his choice of food cooked. "If he wants, he can get 115gm of nonvegetarian stuff every day. He can ask the jail staff to cook for him or get it cooked at the special kitchen," a prison official said. On Monday night, Jagan took along with him some fruits and biscuits into the prison. He also took with him two pairs of clothes which he carried in a bag, sources said. As per sources, it is learnt that immediately upon arrival to special catogary prisoners' area, Jagan met Nimmagadda Prasad and Brahmananda Reddy, who were also arrested in the his assets case, Koneru Prasad, Sunil Reddy and Vijayaraghavan arrested in the Emaar scam case, Srinivas Reddy, BP Acharya, and Rajagopal arrested in the Obulapuram mining scam and Surya newspaper owner Nookarapu Surya Prakash arrested in a cheating case.