The Enforcement Directorate (ED) has attached properties worth Rs 117.74 crore of three companies belonging to Indu Projects Ltd Managing Director Indukuri Syam Prasad Reddy for his alleged investments in a firm floated by YSR Congress Party President Y.S. Jagan Mohan Reddy.
The attached movable and immovable assets include undeveloped lands illegally allotted to the companies of Syam Prasad Reddy, properties of Indu Projects Ltd and fixed deposits held by Embassy Property Developments Pvt Ltd and Vasantha Projects Pvt Ltd.
The case is a follow up of money laundering offences in 11 chargesheets filed by the Central Bureau of Investigation (CBI) against Jagan Mohan Reddy and others, an ED official said.
The ED attached the properties under Prevention of Money Laundering Act (PMLA).
The present case is a quid pro quo investment where Syam Prasad Reddy made huge investments in the companies floated by Jagan Mohan Reddy for the favours received from Andhra Pradesh government by way of allotment of 8,844 acre of land for Lepakshi Knowledge Hub Private Ltd, 250 acres of land at Shamshabad for Indu Techzone Private Ltd and various housing projects to Indu Group.
At the time of the irregularities, YS Rajasekhara Reddy, father of Jagan Mohan Reddy, was the Chief Minister of Andhra Pradesh.
The CBI filed three chargesheets in respect of undue favours received by Syam Prasad Reddy of which the ED has already issued provisional attachment orders in connection with two cases relating to Lepakshi Knowledge Hub Private Ltd and Indu Techzone Private Ltd.
The present attachment is in connection with the CBI chargesheet relating to various housing projects allotted by the then AP Housing Board to Indu Group.
The ED investigation so far has revealed that Syam Prasad Reddy paid bribe to Jagan Mohan Reddy in the form of investments at exorbitant premiums.
"In lieu of quid pro quo payments made by Syam Prasad Reddy, he was illegally favoured by the then Andhra Pradesh government by awarding housing projects at Kukatapally (65 acres), Bandlaguda (50 acres), Gachibowli (4.575 acres) and Nandyal (75 acres) by deviating all standard norms and without examining the technical or financial capabilities.
"Syam Pasad Reddy was also unduly favoured by Andhra Pradesh Housing Board (APHB) by granting huge chunks of land for housing projects at a very cheap price as compared to prevailing market rates which caused huge loss to APHB in the form of revenue generation," an ED statement said.