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CBI makes Rs 135 cr link between BCCI chief and Jagan Reddy

Last updated on: June 8, 2012 13:07 IST

Image: BCCI chief N Srinivasan

Investments worth a whopping Rs 135 crore may be the link between BCCI chief N Srinivasan and YSR Congress chief Jagan Reddy, says Vicky Nanjappa

The Central Bureau of Investigation has summoned Board of Cricket Control in India chief N Srinivasan in connection with an investment of Rs 135 crore that it says was made in Jagathi Publications and Bharathi Cements. These firms are owned by YSR Congress chief Jagan Mohan Reddy, who is currently being probed by the agency in connection with a disproportionate assets case.

Srinivasan is also the managing director of India Cements, apart from being the owner of the Indian Premier League team Chennai Super Kings.

The CBI is also set to question the managing directors of Penna Cements and Dalmia Cements. According to sources, Srinivasan will be questioned on Saturday.

The CBI is trying to find out whether these companies received any favours from the government headed by Jagan's father Dr YS Rajasekhara Reddy, in the form of water allocation. CBI sleuths suspect that water was allocated out of turn and in a bigger quantity due to their investments in the companies owned by Jagan.

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BCCI chief's Rs 135 crore link to Jagan Reddy

Image: YSR Congress president Jagan Mohan Reddy with mother Vijayalakshmi

Srinivasan will also be questioned about certain benefits that he reportedly received in the form of limestone mine allocations in return of investments in Jagan's companies.

Jagan was arrested a little over a week ago by the CBI for various financial offences. He was initially sent to judicial custody and later to CBI custody for five days.

The CBI has also started questioning Ponnala Lakshmaiah, a cabinet ranked minister who had earlier served as the state irrigation minister, about the limestone mine allocation which was allegedly granted under then Revenue Minister Dharmana Prasada Rao's tenure.

CBI officials believe that India Cements received a massive allocation of water to boost its production in return for its investment in firms owned by Jagan.

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BCCI chief's Rs 135 crore link to Jagan Reddy

Image: A Bharati Cements plant
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The CBI is trying to find out whether these allocations were connected to the investments made in Jagan's firms. It has been alleged that during YSR's regime, two allocations of water were made through government order to India Cements, from the Ranga Reddy and Nalgonda districts.

The CBI will seek an explanation from the MD of India Cements about how the allocation of water was suddenly enhanced from 3 lakh gallons per day to 10 lakh gallons per day from the Ranga Reddy district water plant, which was drawing water from Kagna river.

It has been alleged that as a result of these allocations, the production of India Cements had doubled. The first investment worth Rs 15 crore was made in Raghuram Cements, which was renamed Bharthi cements after Jagan acquired the company.

Both parties reportedly made a profit after part of the stake belonging to Jagan Reddy was acquired by a French company. The CBI suspects that India Cements had also invested in M/s Carmel Asia Holdings apart from the investments it made in Jagathi Publications.

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