The Enforcement Directorate (ED) has intensified its probe into the alleged illegal acquisition of shares in Kakinada Sea Port Limited (KSPL) and Kakinada SEZ (KSEZ) during the YSRCP government. The ED had conducted an initial investigation on an FIR filed by the AP CID based on a complaint from KSPL owner Karnati Venkateswara Rao, popularly known as KV Rao, and found huge money laundering activities. It then invoked the Prevention of Money Laundering Act (PMLA) and registered an Enforcement Case Information Report (ECIR). Latest ED notices have been issued to YSRCP MP Vijayasai Reddy and his brother-in-law, Penaka Sarathchandra Reddy, another brother-in-law, namely Y. Vikrant Reddy, son of MP of YSRCP. In addition, directors at PKF Sridhar and Santhanam LLP-a firm believed to be backed by Reddy-have been sent ED notices.
The accused persons went on to cite a laundry list of excuses for failure to appear before the summons from the ED. Vijayasai Reddy cited a parliamentary duty, Vikrant Reddy health issues, while Sarathchandra Reddy did not appear. Thereby, the ED likely to re-issue the notice. Besides, notices shall be issued to Aurobindo Realty and Infrastructure Private Limited herein after Arrow Infra Private Ltd, which is identified to be the ultimate beneficiary. Further steps would depend on their investigations. Even the directors of the company could also undergo the grilling process, and evidence of other misdoings may follow. AP CID has expedited the process simultaneously. The agency gave summons to Sarathchandra Reddy and intends to summon others.
The AP CID has registered cases related to the allegations of KSPL shares worth ₹2,500 crore having been forcibly acquired for ₹494 crore and shares worth ₹1,109 crore in KSEZ acquired for a mere ₹12 crore. According to the FIR, the then Chief Minister Jaganmohan Reddy had planned the whole scheme through threats of fake legal cases, arrests, and imprisonment. The alleged conspiracy resulted in a financial loss of ₹3,000 crore. The charges have been framed for criminal intimidation, cheating, forgery, criminal conspiracy, and organized crime. The ED involvement had been based on probing money laundering connected with the above activities.
KV Rao accused the then Chief Minister Jaganmohan Reddy and his supporters, Vikrant Reddy and Sarathchandra Reddy, of creating a plan on false pretenses to shift shares of KSPL and KSEZ. In addition to that, the audit reports were also forged to malign KSPL. The reports led to claims for ₹965.65 crore against the government and also aided in the fabrication of cases and threats of arrest against Rao and his family. False share purchase agreements were executed, bypassing the normal legal procedures for determining share values and eventually shares were transferred to Aurobindo.
The ED has reportedly gathered critical evidence related to the flow of funds before and after the alleged share transfers. It is probing deeper into these allegations, looking into the conspiracy, false audits, and fraudulent agreements to ascertain the extent of the financial misconduct.
