HC Orders Probe Into Jagan's Assets

The Andhra Pradesh High Court on Tuesday directed the Central Bureau of Investigation (CBI) to launch a preliminary inquiry into allegations that YSR Congress Party president Y S Jaganmohan Reddy had illegally amassed huge wealth and laundered money.

A Division Bench of Chief Justice Nisar Ahmed Kakru and Justice Vilas V Afzalpurkar gave the CBI 2 weeks to complete the preliminary inquiry and submit its report. The report will have to be submitted in a sealed cover, the Bench said.

"The probe should be conducted by the CBI director or a special officer appointed by the CBI," the Court ruled.

"Prima facie, an inquiry is necessary to clear the doubts," the Court said.

A final hearing in the case will be heard after the CBI submits its report, the Justices said.

The High Court had taken up the case after Cantonment MLA P Shankar Rao, now a Minister, had written 2 letters, one on the illegal allotment of lands by the Andhra Pradesh Industrial Infrastructure Development Corporation (APIIC) and the other one about the Kadapa MP's wealth.

Taking suo moto notice of Shankar Rao's letter, the High Court had taken up a hearing.

Dr. Shankar Rao had told media persons in February that he was keen to know whether Jagan had a 'magic wand' that helped him amass wealth. He alleged that it was because he was the son of former chief minister Y S Rajasekhara Reddy that enabled his businesses to grow by leaps and bounds.

The Minister had said that Jagan laundered money by floating fictitious firms and had rerouted the money through his companies on foreign soil.

Shankar Rao had also pointed that Jagan had paid Rs. 15 lakh as tax during 2004, followed by Rs. 2 crore in 2009 and a staggering Rs. 85 crore as Advance Tax for 2011, and had said, "How can Mr. Jaganmohan Reddy's income, which was just around Rs. 11 lakh in 2004, now run into thousand of crores of rupees?". (INN)