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CBI probes more angles in Jagan-Janardhana nexus

Last updated on: September 6, 2011 14:57 IST

CBI probes more angles in Jagan-Janardhan nexus

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Vicky Nanjappa in Hyderabad

The nexus between former Karnataka Tourism Minister and mining baron G Janardhana Reddy and YSR Congress chief YS Jaganmohan Reddy is what the Central Bureau of Investigation will be looking for next. Vicky Nanjappa reports from Hyderabad.

Although CBI case is against Janardhan Reddy and his Obulapuram Mining Company, in the days to come they will explore into more angles that connect the Karntaka mining baron with YSR Congress chief Jaganmohan Reddy.

CBI sources say that they will now be exploring the money trail between the OMC and the assets owned by Jagan. CBI sources in Hyderabad said that the first part of the investigation would focus mainly on the manner in which Janardhana Reddy used the mining lease granted in Andhra Pradesh to carry out illegal mining in Karnataka.

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Image: Y S Jaganmohan Reddy with his supporters

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'R R Global had invested in OMC'

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However, the next part of the probe would include the money trail from the OMC to a company named R R Global. This company is owned by one Diwaker Reddy, who is a Jagan loyalist.

Diwaker Reddy's brother R Reddy is the executive director of Sakshi Telugu, a newspaper owned by Jagan.

"The money trail shows that R R Global had invested in OMC," said a source.

The other trail which would come under the scanner is concerning Red Gold Enterprises another company owned by Diwaker Reddy. Preliminary investigations by the CBI have shown that this company was given around 40 per cent of the iron ore which was mined by the OMC.

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Image: Former Karnataka Tourism Minister and mining baron G Janardhan Reddy

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The money trail is the key

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This money was once again invested in R R Global, according to the CBI.

The CBI says that the trail will be interesting to explore, since the owners of both Red Gold and R R Global (Diwaker Reddy and R Reddy) are directors in the Jagathi publications that is owned by Jagan.

The CBI also says that there was an amount of Rs 90 crore which the Red Gold Enterprises had earned through mining with the help of OMC, and that it had invested Rs 40 crore in Jagathi Publications.

There is also a trail of Rs 30 crore which was found to be invested in Indira Television (also Jagan owned) by purchasing shares of this company.

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Image: The Obulapuram Mining Company

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CBI has proof of Jagan-Janardhan nexus

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The other big trail that the CBI would be looking to link Janardhana and Jagan is the one pertaining to Brahmini Steel. The company was to be set up during the time of the late Andhra Pradesh Chief Minister Dr Y S Rajasekara Reddy and Jagan and Janardhana Reddy were to be partners.

Around 10,700 acres of land had been granted to Janardhan Reddy at a throwaway price of Rs 18,500 per acre. However, this deal did not go through due to YSR's death, and Janardhana mortgaged that land for Rs 350 crore.

Further, the CBI also found that this money was invested in GJR Holdings in Mauritius, another company owned by Janardhana.

Although the links between Jagan and Janardhana Reddy are through other members, the biggest link between the two will be the association in Brahmini Steels.

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Image: A mine in Bellary

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The questions CBI will ask

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The CBI has evidence to show that both Jagan and Janardhana were involved in this company and both had even sold their shares in this company to another firm.

While the Jagan angle will become a major part of the probe, the CBI would first look into the various incidents of illegal mining carried out by the OMC. The CBI would be questioning Janardhana in the days to come, and these are a few topics they would like to question him about:

1) The illegal export of iron ore worth Rs 5,000 crore.

2) The encroachment into forest land, in lands not falling under the lease contract which falls under the forest area.

3) The support he got from members of the YSR family and friends to carry out mining activities in the state.

4) How did he manage to carry out mining in the name of OMC in Karnataka, when he had a lease from Andhra Pradesh.

5) The investments made into Jagan-owned companies with the money raised from OMC.

6) How, despite being granted a lease for 132 hectares, he still carried out mining activity in 326 hectares of land.

7) How had he raised rising contracts and mined lands owned by others in the name of OMC.

8) How the assets owned by him are connected to illegal mining.


Image: Mining in progress in Bellary

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