Probe Jagan's Investors: High Court

In a major setback to YSR Congress Party president Y S Jaganmohan Reddy, the state High Court on Wednesday directed the CBI to inquire whether investors pumped in money along with the Kadapa MP to earn favours from the state government.

A Division Bench of the High Court, comprising Chief Justice Nisar Ahmed Kakru and Justice Vilas V Afzalpurkar, directed the CBI to register cases against all those who had invested in the companies promoted by Y S Jagan, and prove if these investments were made in order to gain undue favours.

The Division Bench further said that the inquiry should cover not only the stated purpose in the writ petitions, filed by Minister P Shankar Rao and TDP leader K Yerrannaidu, but cover other areas which have direct or indirect participation in the irregularities.

The Bench said that the abnormal performance of the companies, reflected by their phenomenal growth trajectory, must be looked into.

The Court directed the CBI's corporate wing to probe these abnormal performances, stating that the body is equipped enough to do so.

Earlier, the High Court had ordered the CBI to conduct a preliminary inquiry into the amassing of wealth by Y S Jagan. Based on the report of the CBI's preliminary inquiry, the Division Bench said that the CBI must conduct a full-fledged probe into the investments made into Jagathi Publications.

Besides this, the Bench also ordered the CBI to probe into the alleged irregularities of the allotment of lands to Emaar Properties.

Meanwhile, welcoming the High Court's ruling, the YSR Congress party said that it has nothing to fear, and that Jagan would emerge clean.

In a statement, the YSR Congress party further said that it is yet to receive copies of the Court's judgement, and that it would evolve a plan after going through it. (INN)