The interrogation of Y.S. Jaganmohan Reddy by the CBI centred around the allotment of land to VANPIC project as a quid pro quo benefit for Nimmagadda Prasad for investing Rs. 350 crore in Sakshi daily.
As a battery of CBI sleuths grilled Mr. Jagan on VANPIC, which has taken centre-stage in the ongoing probe after the arrests of Mr. Prasad and Excise Minister Mopidevi Venkataramana Rao, the Kadapa MP is said to have strongly defended the investments in Sakshi strictly on the ground that it was a business proposition.
While details of the interrogation are not available, Mr. Jagan said in an interview on Thursday that neither he nor Mr. Nimmagadda Prasad has committed any wrong. “What mistake did Mr. Prasad commit? There is no reason for him to be arrested by the CBI,” he said.
He contended that it was the then Congress Government that had given the VANPIC project to Ras Al Khaima (RAK) which was not a private company but a sovereign State in the United Arab Emirates.
“It was Andhra Seaports Company that had first proposed VANPIC project in 1999-2000. But, the company withdrew and the then TDP Government handed it over to the Czech Government,” he said.
A MoU was also signed with the Czech Government but the agreement was cancelled and only then did RAK come into the picture. After RAK signed an MoU with the AP Government, Nimmagadda Prasad was appointed its local partner, Mr. Jaganmohan Reddy claimed.
He said there was no link between Mr. Prasad being the local partner of RAK and his investments in his companies. While the agreement with Czech Government was cancelled in September 2007, Mr. Prasad invested money in August 2007. “The name of RAK did not crop up at that time,” he added.
The YSR Congress leader said there were instances of the Chandrababu Naidu Government favoured certain persons in respect of Krishnapatnam, Gangavaram and Kakinada ports. Gangavaram project was given away to Dubai Government but the local partner was D. V. S. Raju. Similarly, Krishnapatnam and Kakinada Ports also had foreign connections.
He said Mr. Prasad earned Rs. 600 crore by selling away his shares in Bharati Cements in which he invested Rs. 280 crores. “He invested Rs. 350 crore in Sakshi media group in April 2010 – eight months after my father passed away. How can it be a a quid pro quo arrangement,” he asked.
Referring to CBI’s objections on valuation for his media group, Mr. Jaganmohan Reddy said Eenadu group’s valuation was put at Rs. 6,700 crore where as its accumulated losses on that day was put at Rs. 1,800 crore. “We came into the market with 20 editions and high end technology. Is it wrong to give half that valuation for our publication when our print order was 12.50 lakh,” he said.
Published - May 25, 2012 11:52 am IST
