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Illegal mining scam: CBI summons Jagan for questioning

November 02, 2011 15:52 IST

The Central Bureau of Investigation has called Y S Jagan Mohan Reddy, son of former Andhra Pradesh Chief Minister Y S Rajasekhara Reddy, for questioning on November 4 in connection with alleged multi-crore iron ore mining scam.

The agency is probing alleged nexus between Jagan and Janardhana Reddy whose company Obulapuram Mining Company has been accused of violating mining norms in the Ananthpuram disctrict of Andhra Pradesh, CBI sources said.

The clearance for mining leases to OMC was given during the tenure of Rajasekhara Reddy as chief minister. CBI has recently questioned the then cabinet colleagues of late Rajasekhara Reddy in connection with the mining scam as it found that mining leases for OMC were cleared in an unusual haste, they said.

Kadapa MP Jagan is also facing allegations of amassing wealth disproportionate to his known sources of income as well as alleged dilution of stake of Andhra Pradesh Industrial Infrastructural Corporation which is having a joint venture with Emaar for the development of township on the outskirts of Hyderabad.

The sources said CBI has called Jagan for questioning in connection with these allegations on November 4 at the Hyderabad office of the agency.

CBI has registered a case against Jagan on the direction of Andhra Pradesh high court under relevant sections of the Indian Penal Code pertaining to cheating, criminal conspiracy, criminal breach of trust and under provisions of Prevention of Corruption Act.

Acting on separate petitions filed by state Textile Minister P Shankar Rao and Telugu Desam Party leader K Yerran Naidu, the high court had recently ordered CBI to probe the alleged illegal assets that the Kadapa MP had amassed during his father's tenure as chief minister.

CBI has also booked Jagan for allegedly "conspiring" with his father and other individuals and companies to "cheat the government of Andhra Pradesh in the matter of granting certain favours to many companies".

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