AP High Court Orders CBI ED to conduct an investigation into the assets of former CM and TDP president N Chandrababu Naidu and others

AP High Court Orders CBI ED to conduct an investigation into the assets of former CM and TDP president N Chandrababu Naidu and others

Monday –

MLA YS Vijaya is the mother of Kadapa MP Jagan Mohan Reddy.

The Andhra Pradesh High Court ordered the Central Bureau of
Investigation (CBI), Enforcement Directorate and Securities and Exchange Board of India (SEBI) to probe into the alleged illegal assets of former Chief Minister and Telugu Desam Party president N Chandrababu Naidu.




A bench comprising justices Ghulam Mohammed and Nooti Ramamohan Rao gave these orders
The court directed CBI, ED and SEBI to complete the investigation and submit reports
independently within three months.

Last Month October 17 YSR Congress honorary President and Pulivendula MLA YS Vijaya. the widow of YSR Reddy filed a petition demanding probe by the CBI and the ED against Naidu in the Court and now Court ordered CBI and ED to conduct probe into the alleged illegal assets of former Chief Minister and Telugu Desam Party president N Chandrababu Naidu.

The petition mentions about Land Scam , benami transactions in details.

Heritage Foods (India) Ltd. –
The petition also gives complete details about the properties and money earned
When as Chief Minister of the State, Sri.Naidu made the declaration of his assets in 1999, it showed the value of aboutRs.7.83 crores, a massive and inexplicable leap, keeping inview that his agricultural income had been declared only 10years earlier as being Rs.36,000 per annum, and his income as an MLA was Rs.650/- per month and as Director of Heritage Foods was Rs.20,000/- per month

Heritage Infra merged with Srichakra Merchandising and changed its name to SCM Infra.

M/s. Bhuvaneswari Carbides and Chemicals Pvt. Ltd., and Bhuvaneswari Carbides and Alloys Pvt. Ltd

M/s. A 2 Z E multisoft Pvt.Ltd later changed the name as M/s Bizpro Technologies Pvt.Ltd

Sri Ram Agricultural Farms

Dr.Reddy’s Laboratories gets as ales tax deferment of Rs.25 crores for 14 years from the State Government

Land of Rs. 12 Lakh sold in Rs. 3 Crore –
This land is then developed by Sri.Satish Reddy with one Divyasree Soft Tech Realtors Pvt. Ltd., and a massive 5,00,000sq.ft office space is built in a phased manner, which has now been leased to Google™ at a whopping of Rs.2 crore per month. This property is alleged to be the property of Sri Chandrababu Naidu held in the name of Divyasree Group as his benami

Sri. Nara Likes, the only son of Sri.Naidu studied in Hyderabad upto his intermediate education. He was a mediocre student and never had any scholarships to his credit, finally clearing his Science stream at the intermediate stage with just over 50%. However, Sri.Lokesh obtained his Bachelors Degree(1997-2000) from the prestigious Carnegie Mellon University and his Masters (2000-2002) from Stanford University in the
USA. As Sri.Lokesh did not have the necessary grades, it was necessary for large endowments to be made to the Universities to consider him for admission. The amounts that were donated from unknown Indian sources were Rs.1o crore to Carnegie-Mellon and Rs.12 crore to Stanford. There is reason to believe that these payments came from the accounts of Satyam’sSri.Ramalinga Raju in return for the various benefits offered to
Him.

Another unanswered question was the funding of huge educational and living expenses amounting to USD 240000 of Sri.Lokesh which were not reflected in the Income Tax records of any of his family including Sri.Naidu

Sri Nara Lokesh has no source of income even as a minor and subsequent to attaining majority in 2001 as evidenced by his IT returns. However, he acquired Lands at Nindali village in Nellore Dist of AP and near Bangalore and Mumbai worth of hundreds of crores, apart from the prime property ‘gifted’ to him by his grandmother.

Sri Lokesh has been consistently increasing his stake in Heritage Foods India Limited from nil to 9%. He has substantial stake in holding and investment companies viz.,Nirvana Holdings Private Limited, Nirvana power limited, Nirvana logistics and warehousing limited, Nirvana energy limited, Nirvana estates private limited, Niravana Packing private limited, Niravana media private limited, Megabid Finance and investments private Ltd, Heritage foods retail limited, Heritage onpro limited, heritage agro marine private limited, Heritage Fin Lease Limited, Bizpro Technologies Limited, Red Hill logistics and warehousing private limited and Heritage international limited, all of which are from unknown sources.

Sri Naidu has evidently used his mother, his wife and his son to be the conduits of money laundering, and also to obtain benefits from the various corporate houses that he has favored. Apart from these three family members among others.

There are several ingenious ways and means adopted by Sri.Naidu to launder his money through Sri.Chowdary and his group companies. Sri.Chowdary first established a slew of companies to bring Sri.Naidu’s money under the corporate umbrella. Sri.Chowdary created circular transactions among his corporate entities, thereby orchestrating Purchases and Sale sentries running into thousands of crores, so that funds could be moved through books of accounts very effectively and without attracting income tax provisions.

The Total Turnover of Sujana Group companies having manufacturing facilities - Sujana Universal Limited and Sujana Metals Limited (the flagship companies of the Group) - for the financial year 2008-09 was Rs.2149.33 Crores. On the other hand, the group companies which indulged in circular operations involving only trading of Steel Produced by group flagship companies amounted to Rs.4639.38 crores.

Krishna Godavari (KG)Basin –

the basin is located in the State of Andhra Pradesh, the Government under Sri.Naidu chose to turn an obliging blind eye to its rights to the discovery on its soil, while allowing Sri.Naidu’s close associate Sri.Ramoji Rao to be the vehicle of the
quid pro quo .

In fact, there was also a note/letter to Sri.Naidu by the senior officers of the Government cautioning him that the State of AP should also bid for the gas by forming a company like Gujarat had done. This piece of advice was wholly ignored by Sri.Naidu.

defending the rights of local people and protecting the environment, Sri. Naidu kept a blind eye and even encouraged Reliance group of Industries with heavy exemptions and incentives

Sri.Ramoji Rao’s company Margadarsi Financiers had fallen on hard times in the year 2007 when its irregularities and violations became public. Subsequently a committee of enquiry was constituted by Govt. of AP which revealed that Rs.2,600crores of money was collected from public by violating Reserve Bank of India norms and regulations and it was declared that it was impossible for the company to repay its several depositors

Reliance group facilitated the payout of Sri Ramoji Rao’s debts to his depositors.
This was carried out through known associates and friends of Sri Mukesh Ambani.

Two of these known associates of Sri. Ambani and the Reliance Group are Sri.Nimesh Kampani and Sri.Vinay Chajlani.

Sri.Nimesh Kampani extended himself in ensuring that Sri. Ramoji Rao would be bailed out. Within a short span of 37days between December 2007 and January 2008, six “shell companies” were floated on three addresses, which are shown as Sriram Mills Compound, Worli, which is the official address of Reliance Industries Limited. Reliance diverted Rs.2604crores of its shareholders money through the shell companies to Ms.Kampani’s Equator Trading India Limited and Sri.Chajlani’s Anu Trading

It is inexplicable that within 23 days of the very company Equator Trading India Limited being registered, Sri.Ramoji Rao entered into an agreement with that company, which had no known expertise or business. Several documents were also submitted to the Registrar of Companies regarding these transactions. Of the Rs.2604 crore of Reliance money diverted through shell companies, Rs.1,454 crore was routed through Equator Trading, while Rs.1,150 crore was through Anu Trading. Despite Sri.Ramoji’s Ushodaya Enterprises having in curred a loss of Rs.59.19 crore, these companies purchased its
Rs.100 shares at an astronomical premium of Rs.5,28,630 per share. Form 2 dated 30.1.2008 filed by Ushodaya Enterprises with ROC shows shares allotted to Equator Trading Enterprises Ltd at a premium of Rs 5,28,630 per share.
The curious part of the valuation exercise that preceded this grand purchase was that a library comprising film rights of the telugu movies in which thespians like Sri N.T. Rama Rao and A.Nageswara Raoamong others acted, was shown as an asset of Ushodaya Movies one of the proprietary concerns in the HUF of SriRamoji Rao at Rs. 1200 crores. The said proprietary concern had a carry forward loss of around Rs. 1200 crores and the asset was shown as having been sold to Ushodaya Enterprises Private Limited, and shown as an asset of Rs. 1200 crores in the Company which was factored in while valuing the enterprise value of the said Company, leading to a buy-out of a stake at an astronomical premium unheard of in commercial history in the country. The twin advantages of the above operation are that Ramoji Rao HUF in which Ushodaya Movies is a proprietary concern, had the accumulated losses set off by the profits shown in the transaction of sale of film rights to the Company and the Company had swollen its asset base, which is notional, in the form of rights in respect of those movies, which have been taken into consideration for arriving at the enterprise value of Ushodaya Enterprises Private Limited at Rs. 6500crore. No dividend has been declared by the above Company which is valued to be flourishing and it is a sham transaction which is not imbued by considerations of gain and commerce and it is clear that the laundered money has been infused to protect the interests of Sri Ramoji Rao

The Shamshabad Airport

Hitech City
L&T Hitech City Limited

Power Producers Scam –

NTR Memorial Trust

Kakinada Port

Privationsation of Properties

Chittoor Dairy - The Chittoor Dairy was a cooperative under the State, which was destroyed by Sri.Chandrababu Naidu for the benefit of his own dairy named M/s. Heritage Foods India Limited
A book titled ‘Dilemmas In Agriculture - A Personal Story’ published by Vasudaiva Kutumbakam narrates the murder of milk co-operatives by Sri Naidu as Chief Minister

As per the provisions of the New Industrial Policy 1995, Heritage Foods Limited is allowed to keep a sum of Rs.15 crore collected on behalf of the sales tax for a period of 28 years from 1996 to2024. Within this period of 28 years, Heritage Foods Limited will be saving at least a minimum of Rs.300 crore in terms of basic rate of interest given for the deposits by the National Banks.

Money laundering and Foreign assets of Sri Chandrababu Naidu –
Tehelka had revealed Sri Naidu has investments in the hospitality industry in Malaysia and Singapore

the AP Gems & Jewellery Park is concerned, Sri Naidu via APSTC gave 2.6 acres in 2002 in Banjara Hills to Chukkapalli Suresh (MD of AP Gems and the brother of a TDP candidate). A company named IOI India headed by C.Suresh gets financial funding from its holding company IOI Mauritius. Sri Naidu is the owner and beneficiary of IOI Mauritius, which is using its subsidiary in India to launder illegal moneys

In the year 2002, the newsmagazine Tehelka reported about Sri.Chandrababu Naidu’s disproportionate assets by naming him as the richest politician in India. They have further reported his indirect holdings in the Hotel industry and with having shopping complexes in Singapore and Malaysia respectively.

Further enquiries in this regard revealed that the land on which the hotel building is located in 1, Unity Street, Singapore,237983 is owned by M/s Parking property pte. limited. The hotel is managed / administered by the famous Park Group on payment on royalty basis. It is interesting to note that 100percent equity in Parksing property pte. limited is held by a company incorporated in British Virgin Islands namely Eagle Force Profits Limited, P.O.Box 957, Road Town, Tortola,British Virgin Islands. This BVI Company in turn is owned by a private discretionary trust in which family Members and relations of Sri Chandrababu Naidu are the beneficiaries

Yeleru Land Scam –
The appointment of Justice B. K. Somasekhara Commission of Inquiry to probe into Yeleru scam was quashed twice by the AP High Court on pure technicalities and never on merits and hence there is no legal impediment for the court to order a CBI probe into the matter. In fact Supreme Court found fault with the AP High Court for looking at technical aspects alone and not merits at public interest and loss to the exchequer

Yeleru scam is a combination of four scams. Yeleru, Pisinikada,Yalamanchili and vizag steel plant land acquisitions were targeted and even the orders of the Supreme Court were misinterpreted in Pisinikada case and the whole issue was sought to be shown as more a judicial scam rather than a political scam. It is all the more the reason why the judiciary to order a CBI probe into it to bring out the real truth in it

Rithwik Projects Ltd.
From a small turnover of Rs.61 Crores in 2003, Rithwik Projects returned a turnover of Rs.488 crores by 2009 as a Sub-Contractor
The IMG MoU and the Rao Brothers –
IMG is a shell company incorporated with the sole purpose of handling the assets of the State that was transferred with such haste for a throw-away price. This was clearly pursuant to a conspiracy whereby Mr.Naidu would receive his dues for the outrageous favours done to the Rao brothers, and the proceeds of this disproportionate gain would be shared by the principal actors

the sequence and contents of the events narrated above clearly and demonstrably evidence the following

1. Criminal Conspiracy between the political executive of the Government at the relevant point of time with private individuals;

2. with a view to cheat the State of its legitimate revenues accruable from the sale of public assets;

3. and to commit criminal breach of the trust reposed in them by the public at large of public resources;

4. to confer undue and illegal pecuniary and other advantages to private individuals by depriving the State of the same; and

5. abetment of criminal misconduct by known and unknown public servants with the common object of defrauding the public and belying their trust.

Read the complete Writ petition filed by the wife of late YSR Reddy, Mrs YS Vijayalakshmi before the Andhra Pradesh High Court.

WP-Naidu f

Reality views by sm –

Monday, November 14, 2011

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