ED raids shell companies linked to Jaganmohan Reddy (Lead, superseding earlier story)

In what is more trouble for Andhra Pradesh's Leader of Opposition Y.S. Jaganmohan Reddy, the Enforcement Directorate (ED) on Saturday conducted raids on shell companies linked to him.

The shell companies linked to the YSR Congress party chief were among the bogus firms targeted by the ED in its nation-wide crackdown.

The central agency conducted simultaneous raids on around 110 premises and 300 shell companies that were suspected to be involved in dubious and illegal transactions post demonetisation.

"ED searches at shell companies related to Y.S. Jagan Reddy, Rajeshwar Exports & others to unearth their modus operandi," the ED tweeted.

The ED raids came close on the heels of the Central Bureau of Investigation (CBI) filing a petition in a special court here seeking cancellation of bail of Jaganmohan Reddy in the illegal assets case for allegedly violating his bail conditions.

Jagan, as the businessman-politician is known, spent 16 months in jail before he was granted bail in September 2013.

The CBI has so far filed 11 chargesheets in the case against Jagan and others.

The case relates to alleged investments made by private firms and individual investors in Jagan's companies in return for the favours they received when his father Y.S. Rajasekhara Reddy was Chief Minister of undivided Andhra Pradesh during 2004-09.

Jagan is also facing investigations by the ED for alleged money laundering. It has so far attached properties valued at Rs 2,524 crore in the case.

--IANS

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