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CBI grills Jagan over illegal mining, Rs 4,000 crore assets

Last updated on: November 4, 2011 17:01 IST

CBI grills Jagan over illegal mining, Rs 4000 crore assets

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Vicky Nanjappa

The Central Bureau of Investigation on Friday started questioning YSR Congress president Jagan Mohan Reddy at his Koti office in Hyderabad. The CBI is planning to ask Jagan over a 1,000 questions about the alleged link between his front companies and the Obulapuram Mining Company.

OMC is owned by Bellary mining baron Janardhan Reddy, who is currently cooling his heels in jail.

The CBI now needs to prove that there is a link between R R Global, Red Gold and the OMC. It has been alleged that 50 per cent of the iron ore, mined illegally by the OMC, was being given to RRG and RG (companies being probed by the CBI).

Reportage: Vicky Nanjappa


Image: YSR Congress President Jaganmohan Reddy
Photographs: Snaps India
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CBI grills Jagan over illegal mining

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The revenue generated by this deal with the OMC is allegedly being pumped into companies like Jagathi publications owned by Jagan.

The CBI claims that it has enough proof to prove the nexus between Jagan's firm and OMC. According to sources, the agency has found that RRG, RG and Jagathi Publications share the same directors. The Lokayukta report on illegal mining also states that RRG was involved in illegal mining in Karnataka.

The report states: List of exports of iron ore after the ban on issue of permits for destinations for exports by the government on 28/07/2010. R R Global Enterprises had two transactions after the ban on mining in Karnataka.


Image: Jagan Mohan Reddy

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CBI grills Jagan over illegal mining

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On August 18, 2010, the company had through the vessel M V Yong Ping 5 transported 31,000 metric tonnes of iron ore from Krishnapatanam port. In another transaction, the same company had -- through M V Bosco Sun vessel -- transported 2,000 metric tonnes of ore from the same port.

Jagan has denied these allegations, claiming there are no links between his company and OMC. Though there was an agreement on paper to provide ore, says Jagan, it has never been acted upon.

"This agreement is just on paper but it has never been honoured. The allegations are not true," Jagan has said.


Image: Mining in progress in Bellary

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CBI grills Jagan over illegal mining

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The contract was sealed during the tenure of his father, the late Y S Rajasekara Reddy, as chief minister of Andhra Pradesh. But Jagan has pointed out that it was a decision taken by the state government and he had nothing to do with it.

CBI sleuths have kept certain documents a closely guarded secret and they are likely to reveal the contents during today's interrogation.

In a major operation at the Krishnapatanam port, several port officials have been questioned by the agency. The CBI has seized several documents and conducted several searches at Sandur in Bellary.

The agency will also try to track the money trail of Jagan's operations. His companies have reportedly earned a staggering Rs 4,000 crore. Nearly Rs 44 crore has been invested into publications owned by Jagan.


Image: Supporters of Jagan goes violent outside the CBI court

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CBI will ask Jagan about his investments

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The CBI will also ask Jagan if why Jagathi Publications and R R Global are registered under the same address with the same directors.

The agency is also looking into the investment of Rs 74 crore in Jagathi publications and Indira Television, made through R R Global. This money was reportedly raised by illegal mining carried out by OMC that was offered at a discounted rate.

The CBI may continue to question Jagan on Saturday.

Meanwhile, the police had a tough time keeping Jagan's supporters -- who had been protesting that the probe was just a "witch hunt" by the ruling Congress party -- away from the CBI office.


Image: A Jagan supporter threatens to end his life

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