Quid pro quo investments case: Jagan Mohan Reddy's Lotus Pond property attached
Hyderabad: The Enforcement Directorate on Thursday issued a public notice under the Prevention of Money Laundering Act (PMLA) taking possession of the properties of AP Opposition leader Y.S. Jagan Mohan Reddy and his companies, his house and the building hosting the YSR Congress headquarters at Lotus Pond in Banjara Hills, in connection with the quid pro quo investments case.
The ED’s Hyderabad zonal office stated in the notice that the provisional attachment order issued in June 2016 was subsequently confirmed by the Adjudicating Authority in November. It was alleged that companies owned by Mr Reddy received bribes as investments for the favours done by his father, the then chief minister of AP, the late YSR.
ED bars property transfer
The ED notice said: “We have taken possession of properties which shall be at the disposal of the Enforcement Directorate until further order and the properties shall be kept intact by all the concerned for the further proceedings under the PMLA.”
The ED has prohibited and restricted until further order transferring or charging in any manner and it is prohibited to receive the properties by purchase gift, mortgage, pledge or any other means.
An ED official said, “We have issued notice for possession and 10 days time will be given to them as per the procedure. High Court also mentioned that notice has to be given. Those concerned may come and represent or produce documents related to rental agreements if any and any other issues pertaining to the properties. The properties include those in Lotus Pond. We will act further after the notice period ends.”
Mr Jagan Mohan Reddy and his family continue to live in the Lotus Pond residence and YSRC headquarters. YSRC MP and Mr Jagan Mohan Reddy’s auditor V. Vijay Sai Reddy said, “The High Court has already issued a stay regarding the fixed deposits possession. We will approach the court regarding this notice on the immovable properties. Immovable properties can’t be taken into possession without giving time as per the rules.”
On December 21, 2016, the Hyderabad High Court had granted stay on the provisional attachment of properties of one of the companies, Bharathi Cements. Mr Jagan Mohan Reddy’s counsel had argued that there is a statutory period of 45 days time to avail of legal remedies against the order of the adjudicating authority.
The ED told the court that for taking possession of immovable properties, it would issue notices to the petitioners and give them an opportunity to avail of legal remedies under the Act. The judge had said that the status quo shall be maintained with regard to the fixed deposits.
