Companies linked to Jagan under CBI scanner

A senior CBI officer said, "Notices have been issued to 20 investment companies and not Jaganmohan." He, however, declined to give any further details about the notices.

The Andhra Pradesh high court on Tuesday directed the CBI to submit within two weeks a preliminary report into allegations that Reddy misused the office of his father, late Y S Rajasekhara Reddy, to get investments into his business empire from various beneficiary companies.

Dealing with three writ petitions -- one by Congress member of Legislative Assembly and state Textiles Minister P Shankar Rao, two separate ones by Telugu Desam Party leaders -- a division bench comprising Chief Justice Nissar Ahmed Kakru and Justice Vilas Afzulpurkar, directed the CBI to submit a preliminary report whether or not any case was made out.

The complaints allege that Jagan acquired assets worth hundreds of crores from various companies and individuals as a quid pro quo for the land allotted and licences granted to them at cheap prices for various activities when his father was the chief minister between 2004 and 2009. They had further alleged that many companies received undue benefits through questionable methods from the government.

Sources said the notices sought to know the details on the quantum of funds invested in companies of Jaganmohan, stake of the investors, the form of investment and the dates the investments were made among other information.

The respondents have been asked to reply within 48 hours to the notices, the sources added.