Jagan used hawala route for investments: CBI

HYDERABAD: Kadapa MP YS Jagan Mohan Reddy has swindled money of the poor and become rich in a short span of life and made assets that even Ambanis, Tatas, or Birlas can’t make, the CBI has said.Producing him in the court, CBI’s senior counsel Ashok Bhan said Jagan Mohan Reddy used ‘hawala’ route to pump investments into his companies. “Bribe amounts were sent abroad and were re-invested in his businesses through hawala transactions,’’ he said.Bhan said Reddy did not cooperate in the investigation and created a hype of his presence. “He cannot masquerade as a victim of CBI probe and political vendetta. He deprived poor people and caused them irreparable loss and enriched himself,’’ Bhan said, adding that investments worth more than Rs 1,200 cr were made in Jagan’s businesses and he became richer by Rs 300 cr.Jagan’s counsel countered saying that there was not a single complaint of cheating from any person as pointed out by the prosecution.REMAND REPORT: In its remand report filed before the court, the CBI pointed out how Jagan Mohan Reddy had floated a number of companies and got investments into them on a quid pro quo basis by investors who got benefited from the decisions of the government in the forms of special economic zones, contracts, relaxation or permission for real estate ventures.“Jagan, along with Accused no 2 V Vijay Sai Reddy, channelled more than Rs 100 crore of ill-gotten money through various paper/suitcase companies based in Kolkata and Bombay into Jagati Publications which had no business of their own. Just for routing the said ill-gotten money, the said suitcase companies were used.’’It said Jagati Publications had no dividend policy or any returns mentioned to the investors. “The company has  machinery worth Rs 234 crore and there are no tangible assets. Hence the genuine investors were fraudulently cheated.’’The agency also alleged that the MP benefited to the tune of several crores  in connivance with other public servants by getting advertisements to Sakshi newspaper without following norms.