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Satyam: Naidu wants Andhra CM's son probed

February 09, 2009 14:52 IST
Last Updated: February 09, 2009 14:54 IST

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Telugu Desam Party president and leader of Opposition in Andhra Pradesh Assembly N Chandrababu Naidu demanded on Monday that the Centre order an inquiry into illegal financial transactions, including the 'money laundering' in 14 'benami' companies promoted by chief minister Y S Rajasekhara Reddy's son Jaganmohan Reddy.

He wanted a judicial probe by a sitting judge into the affairs of Satyam Computer Services [Get Quote], Maytas Infra, Maytas Properties, the 14 companies promoted by Jaganmohan Reddy and also Heritage Foods owned by his (Naidu's) wife and family.

Initiating a heated debate on the Satyam scandal in the assembly in Hyderabad on Monday, Naidu launched a frontal attack on the chief minister alleging that the latter amassed crores of rupees through illicit means, violating all relevant laws in the process.

"The Sebi rules were violated. FEMA, FERA and the RBI Acts have been violated and even the Income Tax Act was breached in the functioning of the 14 companies promoted by the chief minister's son. The government of India should immediately conduct an inqury into the gross financial irregularities," Naidu said.

Drawing a parellel between Y S Rajasekhara Reddy and Satyam founder, the TDP chief urged the chief minister to come out with a 'self-confession' of his guilt like Raju.

As the Congress MLAs shouted 'Heritage, Heritage' in reference to the alleged financial irregularities in the company owned by Naidu's family, the Opposition leader hit back daring the government to conduct "whatever inquiry you want" into the Heritage affairs.

Listing out the 'benami' companies floated by Jaganmohan Reddy with Sandur Power as the flagship company, Chandrababu said all the ill-gotten wealth of Rajasekhara Reddy was pumped into these companies through the Mauritius channel.

"All the black money and sleaze money earned by Rajasekhara Reddy have been put in these companies. This is nothing but money laundering," he alleged.

"How can a company with its share value of just 40 paise, invest Rs 30 crore (Rs 300 million) in another company?" the TDP leader wondered referring to the investments in one of Jagan's firms.

Without investing a single rupee, Rajasekhara Reddy and his family amassed Rs 600 crore (Rs 6 billion) through dubious deals, Chandrababu charged.

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