The Enforcement Directorate (ED) in Hyderabad has provisionally attached shares and land belonging to former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy in connection with a long-running money laundering case.
This move involves shares valued at Rs 27.5 crore from three companies: Carmel Asia Holdings Limited, Saraswati Power and Industries Private Limited, and Harsha Firm. The ED also seized land worth Rs 377.2 crore, which is owned by Dalmia Cements (Bharat) Limited (DCBL), though DCBL claims the property is valued at Rs 793.3 crore.
This legal action is tied to a money laundering case that dates back 14 years. The case was initially filed by the Central Bureau of Investigation (CBI) in 2011, concerning DCBL’s investment in Bharathi Cement Corporation Private Limited.
The provisional attachment order was issued on March 31, 2025, but DCBL received it on April 15. The land involved was originally purchased by DCBL at a value of Rs 377 crore.
Investigations conducted by the CBI and ED uncovered that DCBL had invested Rs 95 crore in Raghuram Cements Limited, a company associated with Jagan Reddy. The investigation suggests that Jagan Reddy used his influence over his father, then-Chief Minister YS Rajasekhara Reddy, to assist DCBL in securing a 407-hectare mining lease in Kadapa district.
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This is allegedly a quid pro quo arrangement in exchange for the investment. In 2013, the CBI filed a chargesheet naming Jagan Reddy, DCBL, and others under multiple sections of the Indian Penal Code and the Prevention of Corruption Act.
The case also involves the transfer of a mining lease from Eswar Cements to DCBL. Further allegations indicate that Jagan Reddy, along with auditor and former MP V Vijaya Sai Reddy and DCBL’s Puneet Dalmia, entered into an agreement to sell their shares in Raghuram Cements Limited to a French company, PARFICIM, for Rs 135 crore.
According to the allegations, Rs 55 crore of the sale proceeds were paid to Jagan Reddy in cash through hawala channels between May 16, 2010, and June 13, 2011. These cash transactions were traced from documents seized by the Income Tax Department in New Delhi.
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