Jagan case: Andhra home minister, Dalmia Cement MD named as accused

CBI had accused Dalmia of investing Rs 50 cr in a company, which was later acquired by Jagan's Bharathi Cements in exchange for govt favours

In a charge sheet filed in a special court today, the Central Bureau of Investigation (CBI) named Andhra Pradesh home minister Sabitha Indra Reddy as an accused in the alleged quid pro quo investments case involving Kadapa Member of Parliament Y S Jagan Mohan Reddy.

CBI also named Dalmia Cements (Bharat) Managing Director Puneet Dalmia, as well as three other officials of the company, among the 13 accused in the case.

In its first information report filed in August 2011, CBI had accused Dalmia of investing Rs 50 crore in a company that was later acquired by Jagan’s Bharathi Cements in exchange for government favours. In 2009, Dalmia Cements had set up a 2.5-million-tonne (mt) cement plant in Kadapa. It had also invested in other companies owned by Jagan, CBI said. Including its plants in Tamil Nadu, Dalmia Cements has a total installed capacity of nine mt.

When the alleged transactions took place, Sabitha Indra Reddy held the mines and geology portfolio in the state government. These transactions include the transfer of a 407-hectare limestone mining lease held by Eswar Cements in the name of Dalmia Cements in 2008.

Earlier, state excise minister Mopidevi Venkata Ramana was arrested and jailed by CBI. He was accused of favouring industrialist Nimmagadda Prasad (during Ramana’s term as infrastructure and investments minister). In another charge sheet, CBI had pulled up state roads and buildings minister Dharmana Prasada Rao for his role in the allotment of land in the same project in an allegedly fraudulent manner (during Rao’s term as revenue minister). But the state chief minister had backed Rao and asked him to continue in the cabinet, despite CBI pursuing a case against him.

However, the fate of Sabitha Reddy isn’t clear. The CBI counsel told the special court there was no need for a government permission to try the minister under the Prevention of Corruption Act. CBI has filed the charge sheet under various sections of the Indian Penal Code and the Prevention of Corruption Act.