The AP High Court on Tuesday directed the CBI to conduct a preliminary inquiry into the alleged illegal assets of YSR Congress chief Y S Jaganmohan Reddy and submit a report to it in a sealed cover within two weeks.  The bench asked CBI to conduct a preliminary inquiry to ascertain whether there is a need to order a regular investigation. The court also directed all the respondent companies and individuals in the case to extend their co-operation to the CBI during the preliminary inquiry.

A division bench of the High Court comprising Chief Justice Nisar Ahmad Kakru and Justice Vilas V Afzalpurkar passed this interim order while hearing a letter-cum-petition filed by Secunderabad Cantonment Congress MLA and textiles minister P Shankar Rao and a separate petition filed by three TDP leaders. The crux of the complaint in both the petitions filed against Jagan is that he acquired assets worth hundreds of crores of rupees from various companies and individuals as a quid pro quo for the land allotted and licences granted to them at cheap prices for various activities when his late father Y S Rajasekhara Reddy was the chief minister of the state between 2004 and 2009.

The advocates representing Jagan stoutly opposed the entrustment of the matter to CBI for a preliminary report on the grounds that it would adversely affect the image of their companies. The bench asked them to show a law that prevents the court from seeking a preliminary report from the CBI to ascertain the facts of the case. The bench said, "We have applied our mind to the case on hand and our conscience is asking us to get things verified before going further."