N Srinivasan gets relief from CBI case

The case about an alleged quid pro quo deal related to his company's investments in firms floated by Y S Jagan Mohan Reddy

Hyderabad high court today quashed a case against India Cements' managing director N Srinivasan in an alleged quid pro quo deal related to his company's investments in firms floated by Y S Jagan Mohan Reddy.

Setting aside the cognisance orders issued by the trial court in respect of a CBI charge sheet filed against him and the company in September, 2013, Justice B Siva Shankar Rao observed that Srinivasan in his individual capacity was not privy to the agreements entered by his company with the then Andhra Pradesh government.

Justice Siva Shankar Rao delivered the judgement in a petition filed by Srinivasan in August, 2015 seeking the quashing of the case filed against him. His lawyers argued that the investigating agency had neither filed any documents along with the charge sheet to explain how it was going to prove the case against the petitioner nor he had made any investments in his personal capacity into the companies owned by former Andhra Pradesh chief minister Y S Rajasekhara Reddy's son.

In his orders the judge also held that no benefits were extended to Srinivasan in his individual capacity and all the transactions were done by the India Cement. "No vicarious liability can be attached to him. Hence the case against him was quashed and the cognisance order was set aside in support of him," justice Rao said.

The judgement comes as a personal relief for Srinivasan though the case against the company will remain for trial in the court of law.

India Cements had invested about Rs 40 crore in Jagathi Publications, which owns a Telugu newspaper and a Telugu television news channel under the name Sakshi, and over Rs 100 crore in other firms including Bharathi Cements originally promoted by the Y S R Congress party president Jagan Mohan Reddy.

CBI linked these investments to the orders issued by the state government in the year 2008 through which the company was given permission to draw an additional 1 million gallons of water from Krishna river in addition to extension of lease on lands that were already in possession of the company.