Ujagans Assets: Dharama Booked

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[b] Jagan assets case: CBI names Andhra Pradesh minister Dharmana Prasad Rao as fifth accused[img]http://www.ndtv.com/news/images/story_page/Dharmana_Prasada_295.jpg[/img][/b]
[b]Hyderabad: [/b]Politician Jagan Mohan Reddy has spent 11 weeks in a Hyderabad jail on charges that include criminal conspiracy and corruption. Six ministers from the Congress government and an equal number of bureaucrats at least are being investigated for their alleged collusion with Mr Reddy, and his father, YSR, who was the chief minister of Andhra Pradesh till he died in a helicopter crash in 2009. One of the six ministers, Mopidevi Venkatramana, is already in jail and another, Dharmana Prasad Rao, has been named accused number five in the fourth and most recent chargesheet presented by the Central Bureau of Investigation (CBI).

The case against Mr Reddy states that he used his father's position as chief minister to push industrialists to invest in his businesses. 26 government orders reportedly helped facilitate favours to these companies in exchange for quid pro quo investments in companies owned by the chief minister's son.

The new chargesheet presented in court today relates to the Vanpic project in 2008. This was for construction of ports and an industrial corridor in the Prakasam and Guntur districts. At the time, Mr Rao was Revenue Minister. Vanpic is said to have been allotted the project and also thousands of acres of land for it in gross violation of norms in exchange for which it is said, industrialist Nimmagadda Prasad had invested some 800 crores in companies owned by Jagan Mohan Reddy.




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[/list]The CBI contends the terms of the project were violated because it was a so called 'government-to-government' project with the Emirate of Ras Al Khaimah. Less than three weeks after the Memorandum of Understanding (MoU) was signed between the Government of the Ras Al Khaimah and the Andhra Pradesh Government to develop an integrated Vodarevu and Nizampatnam Port and port-related Industrial Corridor, RAK Investment Authority wrote a letter to the Andhra Pradesh government stating that Matrix joined hands with them as an Indian partner to implement Vanpic project, the CBI said.

The agency further submitted that it was revealed during investigations that Vanpic Ports Pvt Ltd (SPV) was incorporated with Prasad and Matrix as the original subscribers to the MoU without any involvement of RAK which subsequently entered into this private company.

In 2009, the Andhra Pradesh government observed certain deviations in Government Orders (GOs) when compared with the concession agreements of other ports, and the crucial deviation was regarding extension of the concession period beyond 33 years with the word 'mutual consent' missing.

Another instance was the dilution of equity after five years of commencement date (Agreement Date) instead of commercial operation date among others, the CBI said.

One more contravention was allowing the dilution of RAK shares to 26 per cent, thus facilitating the entry of another private company, Navayuga Engineering Company Ltd, into the SPV, cornering 65 per cent equity and getting control of it whereas the project was awarded without going through the open competitive bidding process on government-to-government basis, the central agency said. Navayuga has subsequently sold off its stake.

Similarly, Prasad had exaggerated the payment made for land to [font="4e60208b5715068d08ef08e8#981800"]R[/font]s.[font="Times New Roman"] 450 crore whereas the actual payment to original landowners was about [/font]Rs.[font="Times New Roman"] 150 crore.

The CBI says Prasad invested in Mr Reddy's companies and in return, was given the Vanpic project, a shipyard and a greenfield airport at Ongole. Undue concessions were extended including alienation of huge chunks of assigned/government lands, all of which fall under the purview of the revenue department, headed by Dharmana Prasad Rao.

Interestingly, Mr Rao had headed a Congress panel asked to look into the reasons for the debacle of the Congress in the recent by-elections. His own family loyalty is divided. His brother Dharmana Krishna Das won the Narsannapet assembly seat in the recent by-elections on a YSR Congress party ticke[/font]