Apart from CBI, the state government is also tightening the screws on the investors in Jagan's enterprise which sprang up during his dad's tenure as CM. In line with this, the state government has issued notices to Investors in Jagan's companies. Hetero drugs which has invested in Jagati publications, is also under Govt. scanner on allegations that company has not fulfilled its promise of giving employment to local people.

APIIC had taken over 1,000 acres of land in 10-15 villages for setting up an SEZ in Polepally in Jedcherla mandal in 2007 for pharmaceutical park. During procurement of land, as part of rehabilitation the land losers in the SEZ area were promised jobs. Now, the displaced people of Mudireddypally, Gollapalli, Polepally, Chenelli and nearby villages are demanding jobs, but to no avail. Last week a woman named Sungunti Anjamma who failed to get any job in the SEZ, committed suicide. Government has sought details about the employment provided by the companies and benefits received from the government. Hetero has invested in companies managed by Jagan and his wife Bharathi. Recently, CBI also seized some files related to Polepally SEZ and correspondence of Hetero drugs on that allotment.

Another Major jolt for Jagan is expected from the state government’s examination of sale of shares as lead promoter in Raghuram Cements (now Bharati Cements) to a foreign company after obtaining huge tracts of Lime stone mines in Kadapa district during his fathers regime. YS Jaganmohan Reddy sold a 51 per cent stake in Bharathi Cements to French firm Vicat SA for a huge undisclosed sum. In less than four years, Jagan constructed the cement factory and sold his majority share for a huge sum as the company owns 2307 acres of lime stone mines. State Govt. officials are also exploring the options available under the law to cancel the lease holding of mines to a Cement factory with more than 51% holding by a foreign entity.

Govt. officials are examining steps that the state government can take to resume the lands given to these companies. All possible ways are being explored to book these companies if they are found to be indulging in any irregularities, according to a top official in the government.