Hyderabad: In a significant development in the decade-old quid pro quo investment case, the Enforcement Directorate (ED) has attached assets worth over ₹820 crore as part of a money laundering investigation involving former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy and Dalmia Cements (Bharat) Limited (DCBL).
According to the ED, assets worth ₹27.5 crore in shares owned by Jagan Reddy and land and property worth ₹793.3 crore belonging to DCBL have been provisionally attached under the Prevention of Money Laundering Act (PMLA). The move comes in connection with allegations of corrupt investments in return for undue favours during Reddy’s tenure.
The case stems from a 2011 FIR filed by the Central Bureau of Investigation (CBI), which alleged that DCBL made quid pro quo investments worth ₹95 crore in Bharti Cement Corporation Pvt Ltd — a company owned by Jagan Reddy. In exchange, the Andhra Pradesh government had allegedly granted a mining lease for 407 hectares in Kadapa district to DCBL.
The ED stated that, “The investment was structured to benefit Reddy’s businesses, which included the indirect sale of shares in Raghuram Cements Ltd to French firm PARFICIM for ₹135 crore.” It further alleged that ₹55 crore out of this deal was routed to Reddy in cash via hawala networks, while a plan to transfer ₹139 crore through similar illegal channels was also uncovered — of which a significant portion had already been paid.
The CBI had filed a chargesheet against Jagan Reddy and other accused under the Prevention of Corruption Act and Indian Penal Code on April 8, 2013.
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