Former CMD alleges foul play in Kakinada port stake sale; files case

Karnati Venkateswara Rao, former chairman and managing director of Kakinada Seaports Limited (KSPL), has filed a complaint with the Andhra Pradesh CID alleging the forcible acquisition of Kakinada Port shares worth Rs 2,500 crore for just Rs 494 crore.

 

According to the first information report (FIR), reviewed by Business Standard, former chief minister Jagan Mohan Reddy has been accused of orchestrating the illegal acquisition. The FIR also names Rajya Sabha member Vijay Sai Reddy, former Ongole member of parliament Y V Subba Reddy’s son Vikrant Reddy, Sharath Chandra Reddy, a non-executive director of Aurobindo Pharma, and auditing firm PKF Sridhar & Santhanam.

 

Later, Aurobindo Pharma distanced itself from the controversy. "We would like to clarify that Aurobindo Pharma Limited or its subsidiaries are in no way connected with the ownership or operations of Kakinada Seaports Limited and Kakinada SEZ Limited, including Auro Infra Private Limited. Please take the above information on record," it said in a statement.

 

According to the complaint, 40 per cent of Kakinada Port, valued at Rs 2,500 crore, was forcibly acquired for just Rs 494 crore. Similarly, 49 per cent of Kakinada Special Economic Zone (SEZ), worth Rs 400 crore, was purchased for a mere Rs 12 crore, even after a competing offer from GMR Group for the full amount.

 

The complaint further alleges that in May 2020, Vijay Sai Reddy informed K V Rao that Vikrant Reddy would reach out regarding the acquisition of Kakinada Port shares. The shares were subsequently transferred in the name of Aurobindo Realty and Infrastructure.