ED attaches Rs. 143 crore assets of Jaganmohan

The Enforcement Directorate (ED) on Tuesday attached assets worth Rs. 143.74 crore under the provisions of Prevention of Money Laundering Act (PMLA) in connection with the disproportionate assets case against YSR Congress party chief Y.S. Jaganmohan Reddy.

The attached assets include 135.46 acres of land belonging to Ramky Pharma City (India) Ltd., Rs. 3.20 crore mutual fund deposits and Rs. 10 crore fixed deposits of Jagati Publications Pvt. Ltd.. The properties were attached under Section 5 (1) of the Prevention of Money Laundering Act (PMLA).

The ED is conducting investigation under PMLA against Mr. Jaganmohan Reddy for the offence of money-laundering based on the FIR registered by the CBI.

Sources stated that during the course of investigation, it was revealed the Ramky Group, led by A. Ayodhya Rami Reddy, had invested Rs. 10 crore on a quid pro quo arrangement with Jagati Publications and got benefited by the allotment of 135.46 acres of land worth Rs. 133.74 crore. The Ramky Pharma City (India) Ltd. had either sold plots or leased the alloted land and made good of Rs. 133.74 crore.

In return of the favour from the State Government for land allotment, Ramky Group of Industries invested Rs. 10 crore as equity in Jagati Publications Pvt. Ltd., owned by Mr. Jaganmohan Reddy. The ED was said to have come to a conclusion that the investment of Rs. 10 crore was kickback for the favours received from the Government.

Further, it was also known in the investigation that shareholders of Ramky Pharma City (India) Ltd. are Ramky Infrastructure Ltd., Ramky Estates and Farms Ltd. and APIIC. The Ramky Pharma City (India) Ltd. had sold 23 plots in non-SEZ area and leased out 8 plots in SEZ area in the Pharma City named as Jawahar Lal Nehru Pharma City.

The illegal sale proceeds of Rs. 133.74 crore and quid pro quo investment of Rs. 10 crore was identified as criminal proceeds.