Sujana could have faced big trouble: Speculation that agencies may take it easy now

Hyderabad: The buzz in high offices in New Delhi is that Rajya Sabha MP-cum-industrialist Y.S. Chowdary, who has been on the radar of the CBI, Enforcement Directorate and Income Tax department, over the last couple of years, would have been in deep trouble in the coming months.

Back home in Andhra Pradesh, the ruling YSRC under Y.S. Jagan Mohan Reddy would have compounded his problems as he was very close to former chief minister N. Chandrababu Naidu.

But now that Mr Chowdary along with three other Rajya Sabha members, including Mr C.M. Ramesh, have joined the BJP, the investigation by the top three agencies might well end up in cold storage.

Political observers say that by joining the BJP, Mr Chowdary has got himself a new lease of life, both politically and also with regard to probes by various agencies against him.

Just a day after he was sworn in as minister of state for science and technology and earth sciences in November 2014, Mr Chowdary came under the media scanner for an allegation by the Mauritius Commercial Bank Limited that his company had defaulted on a Rs 192-crore loan it had availed of through one of its subsidiaries. Mr Chowdary said he had not borrowed, that it was his group firm, Sujana Universal Industries, that had, and that he just stood guarantor.

That was just the beginning. On November 23 and 24, 2018, the Enforcement Directorate (ED) conducted searches at the office and residence of Mr Chowdary, who was a close aide of former AP chief minister N. Chandrababu Naidu. The ED claimed that the Sujana group had defrauded banks to the tune of Rs 5,700 crore. The documents seized by the ED indicated that the Sujana group was controlling over 120 companies that were only on paper, without doing any business. He dismissed the allegations as baseless.

The ED's action came after the CBI's Bengaluru unit filed three FIRs based on complaints from three banks that Best and Crompton Engineering Projects Limited, Chennai, owned by Mr Chowdary, caused a loss of Rs 364 crore to the consortium of banks by obtaining loans by submitting false statements and accounts.

The loss caused to the consortium was: Rs 133 crore to Central Bank of India, `71 crore to Andhra Bank and Rs 159 crore to the Corporation Bank. The ED was investigating the cases under the Prevention of Money Laundering Act (PMLA). Mr Chowdary approached the High Court against the CBI summons.

“'I feel that they have joined the BJP at the behest of Mr Naidu to safeguard their interests,” YSR Congress MP P.V. Midhun Reddy told Deccan Chronicle.
Asked specifically whether joining the BJP will get them “immunity” from the various investigations, the Mr Midhun Reddy said: “We should wait and see.” He added that AP Chief Minister Y.S. Jagan Mohan Reddy was not targeting anyone nor was there any witch hunt.

In April this year, the ED had attached assets worth Rs 315 crore in connection with the money laundering and alleged bank fraud case against a firm promoted by Mr  Chowdary.

Asked about the cases against him, he told reporters: “'The cases have got nothing to do with politics. There is no chargesheet against me. Anyone can be examined by agencies and mere examination does not mean that I am involved in it. I left all those companies which I had founded 15 years ago. I am not involved in a murder, bribery or forgery. The investigation in those (CBI, ED) cases can go on. This is a political decision I have taken.”

AP tourism minister Avanti Srinivas said that the TD MPs joining the BJP may be a political stunt of former Mr Naidu. “As he cannot get access to the BJP, he might have sent his MPs to join. The doors of the BJP are permanently closed to Mr Naidu and he knows that he cannot fight Jagan and is resorting to these tricks.”

When it comes to probes by central agencies, Mr Chowdary’s aide C.M. Ramesh, also a confidant of Naidu, is not far behind. His name cropped up in the CBI vs CBI case, where it was alleged that he mediated with then CBI director Alok Verma on behalf of Satish Sana, another businessman, to secure relief in a case against him. Mr Ramesh said there was a conspiracy to drag his name into the case.

In October 2018, income-tax sleuths raided his offices and residence over suspicious transactions to the tune of over Rs 100 crore. The taxmen believe that the transactions were done through a firm, Rithwik Projects Private Limited, in which Mr Ramesh is a director. Mr Ramesh alleged it was a political vendetta. The matter is still under investigation.

Reiterating the party’s stand, YSRC spokesperson Vasireddy Padma said the four TS members had joined BJP very much under the directions of Mr Naidu so that they would be insulated from trouble by the BJP. “This way, the Rajya Sabha members who have been facing various cases from central agencies will get insulation and they will act as TD coverts (agents) in the BJP, discouraging the Centre from taking any vindictive steps against Mr Naidu,'” said Ms Padma.

Both Mr Chowdary and Mr Ramesh were the backbone of the TD, insiders say. “'They were the big two who took care of the finances of the party. All that they had was money power and that was all. Naidu went out of his way to support them and vehemently opposed every move by the CBI, ED or I-T, calling it vendetta. Both have never fought an election and cannot attract the masses,”' said a TD leader.