ED attaches Jagan Mohan Reddy, Dalmia Cements' assets in 14 year old money laundering case - Check details

The Enforcement Directorate (ED) has attached assets belonging to former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy and Dalmia Cements (Bharat) Limited (DCBL) as part of a case that dates back 14 years ago.

As part of its action, the ED has provisionally attached shares worth ₹27.5 crore belonging to Jagan Reddy and land worth ₹377.2 crore belonging to Dalmia Cements in connection with a money laundering case involving quid pro quo investments, according to a report by the Times of India.

ED attaches assets of Jagan Reddy, Dalmia Cements

The provisional attachment, filed on March 31 by the Hyderabad unit of ED, was received by DCBL on April 15, as per the report. The initial value of the land while purchasing was ₹377 crore, as per ToI, but the value has now increased to ₹793.3 crore the company has said.

In case of Jagan Reddy, the shares attached were in companies including Carmel Asia Holdings Limited, Saraswati Power and Industries Private Limited, and Harsha Firm.

What is the money laundering case involving Jagan Reddy?

The ED’s provisional attachment is in connection with an earlier case registered by the Central Bureau of investigation (CBI) in 2011, where Dalmia Cements had invested in Bharathi Cement Corporation Private Limited.

As per the TOI report, investigations conducted by CBI and ED found that DCBL had invested ₹95 crore into Raghuram Cements Ltd., which is represented by the YRSCP chief.

What is ED saying?

According to the report, CBI and ED have accused YS Jagan Mohan Reddy, auditor and former MP V Vijaya Sai Reddy, and Puneet Dalmia of DCBL for selling their shares in in Raghuram Cements Ltd to a French company named PARFICIM for ₹135 crore. Out of this, Reddy got ₹55 crore between May 16, 2010, and June 13, 2011, via hawala channels in cash.

The details of the payments have reportedly been found in the material seized by the income tax wing in New Delhi.

ED and CBI have further claimed that that returned the alleged sale proceeds to Jagan Reddy through hawala channels in cash. This, they allege, esa=tablishes that the initial payment of ₹95 crore was illegal gratification for the undue benefits received by the accused individuals from the Andhra Pradesh government.

The CBI had in April 2013 already filed a chargesheet against the accused, including the YRSCP chief, , under various sections of the IPC and the Prevention of Corruption Act.