Indu Projects was not eligible for contract
Prasad Reddy, owner of Indu Projects allegedly paid 70 crore bribes
By : DC Correspondent
Update: 2014-09-10 01:32 GMT
Hyderabad: In the 11the chargesheet, that was filed by the Central Bureau of Investigation, Subba Reddy has been named along with Jagan Mohan Reddy and Prasad Reddy of Indu Projects and senior IAS official S.N. Mohanty in the chargesheet pertaining to the AP Housing Board land scam.
Mr Subba Reddy was given 50 per cent share in Vasantha Projects as the YSR government doled out benefits to Indu Projects, according to the CBI.
The CBI has said that Indu Projects, owned by Mr Prasad Reddy paid Rs 70 crore in bribes in former investments in Mr Jagan Mohan Reddy’s Carmel Asia Holdings in lieu of undue benefits it got from the YSR government. The key allegation is that Indu Projects, though not eligible for getting the contract, entered into a consortium for the sake of bagging the contract and got the prime land of 72 acres allotted in Kukatpally and Gachibowli.
The CBI in its chargesheet also said, “Indu Project was not entitled to get the contract awarded. It formed a consortium with Embassy Realtors and others and bagged the contract. After getting the contract, it purchased shares of the partners allowing them to exit. This has been done deliberately to bag the project through backdoor operations. In a quid pro quo, Indu had invested Rs 70 crore in Mr Jagan Mohan Reddy’s company. IAS official Mohanty was at the helm of affairs and was involved in all land allocations.”
Indu Projects later sold the land at a premium and gained illegally, the CBI said. The scam took place between 2004 and 2009.
Meanwhile, the CBI court posted the proceedings in other cases involving Mr Jagan Mohan Reddy to September 23. Mr Jagan Mohan Reddy appeared in the court along with other co-accused D. Prasada Rao.
Prevention of Corruption Act.