Citizens' Issues
ED attaches Rs143 crore assets in Jagan money laundering case

The attachment order, under criminal provisions of the PMLA is the third by the agency after it issued two separate attachment orders of Rs51 crore and Rs71 crore earlier

Hyderabad/New Delhi: The Enforcement Directorate (ED) has attached assets worth Rs143.74 crore in connection with its probe in the money laundering case against YSR Congress party chief Jagan Mohan Reddy, reports PTI.

 

The attachment order, under criminal provisions of the Prevention of Money Laundering Act (PMLA), is the third by the agency after it issued two separate attachment orders of Rs51 crore and Rs71 crore earlier, in this case.

 

The agency, according to sources, has few more similar orders in the pipeline as it plans to build a water-tight case against Jagan and his associates.

 

"Immovable properties and movable assets worth Rs143.74 crore under section 5(1) of PMLA are being attached. The properties attached from Ramky Pharma City (India) Ltd are about 135.46 acres of land and deposit of Rs3.20 crore in mutual funds and fixed deposits for Rs10 Crore from Jagati Publications Pvt Ltd (held by Jagan Reddy)," the attachment order said.

 

The agency is probing the case on the basis of the FIR filed by CBI to investigate alleged disproportionate assets amassed by Jagan especially during the tenure of his father—the late Andhra Pradesh chief minister YS Rajasekhara Reddy

 

An ED attachment is an enforcement action under anti-money laundering laws to restrict the accused from taking benefit out of the properties or assets they have created through illegal means.

 

The accused parties can appeal against the order at the Adjudicating Authority of the PMLA based here.

 

During the course of investigation, the ED alleged, “It was revealed that Ramky Pharma City (India) illegally sold land falling in greenbelt area and acquired a sum of Rs133.74 crore. In lieu of the favour from the state government of Andhra Pradesh, A Ayodhya Rami Reddy, chairman of Ramky Group paid a sum of Rs10 crore in equity of Jagati Publications Pvt Ltd (a company owned and controlled by Jagan Mohan Reddy).

 

“The payment of Rs10 crore was kickback for the favours done by the state government. Thus, the investigation under PMLA has so far revealed that shareholders of Ramky Pharma City (India) are  Ramky Infrastructure, Ramky Estates and Farms Ltd and APIIC,” it alleged.

 

The ED further said that “Ramky Pharma City (India) had sold the plots in non-SEZ area and leased out plots in SEZ area in the Pharma City named as Jawahar Lal Nehru Pharma City. In the illegal sale and lease of land falling under the greenbelt area, by sale of 23 plots in non-SEZ area and eight plots in SEZ area the generation of proceeds of crime was to the tune of Rs 133.74 crore.

 

“Ramky Pharma City (India) was illegally benefited by this amount as a result of criminal activity. Further payment of Rs10 crore by Ramky Group of Companies to Jagati Publications is the proceeds of crime which was transferred as equity contribution in the company. Thus, total amount of the proceeds of crime is Rs143.74 crore,” the ED alleged.

 

An ED attachment is an enforcement action under anti-money laundering laws to restrict the accused from taking benefit out of the properties or assets they have created/earned through illegal means.

 

The accused parties can appeal against the order at the Adjudicating Authority of the PMLA.

User

Fake bail bond scam at Kurla: CBI to file charge-sheet by 31st January

CBI told the high court that it would file a charge-sheet against four RPF personnel by 31st January during the hearing of a PIL filed by social activist Samir Zaveri

Mumbai: The Central Bureau of Investigation (CBI) on Tuesday told the Bombay High Court that it would file a charge-sheet against four Railway Protection Force (RPF) personnel by 31st January for their involvement in the fake bail bond scam at suburban Kurla railway station, reports PTI.

 

A division bench of justices AM Khanwilkar and KK Tated was hearing a public interest litigation filed by social activist Samir Zaveri alleging that certain RPF personnel were releasing persons booked for trespassing and crossing railway tracks on fake cash bail bonds.

 

The court had last year transferred probe in the case to CBI.

 

Additional solicitor general Kevic Setalvad, appearing for the CBI, today told the court that 23 RPF personnel have been identified as being involved in the scam.

 

“The investigating agency has sufficient evidence against nine officials who are the main accused. Out of the nine, sanction for prosecution needs to be taken from the government for five officers. Charge-sheet against the remaining four will be filed by 31st January,” he said.

 

Accepting the statement, the bench asked CBI to file proposals for sanction of prosecution of the five officers immediately and directed the government to decide the proposals expeditiously.

 

The agency, after getting sanctions, will file supplementary charge-sheets.

 

In his PIL, Zaveri had alleged that a head constable acted as a magistrate and granted bail to the alleged offenders and the money collected was misappropriated by the RPF personnel themselves.

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COMMENTS

Samir Zaveri

4 years ago

If Railway Protection Force (RPF) department had made honest efforts when received complaint dated 31-07-2008 requesting for probe to unearth fake bail bond scam / running fake Court by group of RPF personnel at Kurla suburban railway station of Central Railway, Mumbai, this days would NOT have seen by Indian Railway.

Kaya Skin Clinic: Marico throws in the towel

Patience amongst Marico shareholders for the Kaya business to break even was running out and the vertical slicing of Marico should provide some respite

After more than a deacde of losses, Marico has decided to cut loose Kaya, the “skin care solutions company”. Marico Kaya Enterprises (MaKE, to be formed). will run the Kaya beauty and wellness chain and will be a separately listed. The appointed date of the demerger is 1 April 2013. It may take about six months to obtain the necessary approvals and complete all formalities, the company said in a statement. Following the demerger, the shareholders of Marico will get one share of Marico Kaya Enterprises with a face value of Rs10 each to be issued at a premium of Rs200 per share for every 50 shares of Marico with a face value of Re1 each.

 

“This corporate restructuring will lead to enhanced shareholder value through sharper focus and greater energy across both organizations and businesses,” Marico said in the release. Unfortunately, the current proposal does not give an option to minority shareholders in Marico not to participate in the MaKE business, according to the analysts in Espirito Santo Securities. Kaya has tried several measures to break even and the analysts were not enthused by the Kaya business. It is believed that a further cash infusion (or strategic investor) might be required in the MaKE business before it can turn into a sustainable business model.

 

The shareholding structure of the to-be listed MaKE business will mirror the shareholding structure of Marico on the date of the demerger, with no holding from the current listed FMCG (fast moving consumer goods) business.

 

The Marico share, after the demerger, is not considered to be an attractive buy by Espirito Santo, and it maintains a ‘sell’ rating.

 

The accumulated losses of Kaya since inception in FY 2003 are estimated to be Rs145 crore in comparison to the existing direct capital employed by the Marico group in the Kaya business of Rs179 crore.

User

COMMENTS

AlbertSmith

3 years ago

A decade of losses? Perhaps they should have thrown in the towel a long time ago.

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AlbertSmith

3 years ago

This is a nice post in an interesting line of content.Thanks for sharing this article, great way of bring such topic to discussion.

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