The Supreme Court has rejected bail plea of Kadapa MP YS Jagan Mohan Reddy, who has been in judicial custody for over one year in a disproportionate asset case being probed by CBI against him and 73 others.
The son of former Andhra Pradesh Chief Minister YS Rajashekhara Reddy has been accused of receiving kickbacks from companies which illegally benefited from the decisions of the AP Government during the period when his father was Chief Minister.
The bench of Justices P Sathasivam and MY Eqbal refused to release Jagan on bail as it noted that CBI investigations against him was incomplete in six of the seven cases. “We are of the opinion that the release of the appellant at this stage may hamper the investigation,” the bench said, fixing a four-month period for CBI to complete its probe.
“Thereafter, the appellant is free to renew his prayer for bail before the trial court and if any such petition is filed, the trial court is free to consider the prayer for bail independently on its own merits without being influenced by dismissal of the present appeal.”
In further setback to Jagan, the apex court also cancelled bail granted by the AP High Court to Vijay Sai Reddy, who was the brain behind the conspiracy and operated by floating fictitious companies in Chennai and abroad so as to enable round tripping or touting routing monies into the companies where Jagan held stake. The Court denied bail to another accused in the conspiracy, Nimmagadda Prasad who had a hand in routing the ill-gotten money via Mauritus-based firms.
The SC bench said, “Economic offences constitute a class apart and need to be visited with a different approach in the matter of bail.” Unfortunately, in the last few years, the country has witnessed an alarming rise in white-collar crimes, which has affected the fiber of the country’s economic structure, it added.
CBI informed the Court that it will shortly file chargesheet against Jagan with respect to conspiracy involving India Cements, Penna Cements and Investments through Kolkata-based companies. With respect to Dalmia Cements investigation was complete and quid pro quo had been established, CBI informed the Court. In lieu of mining lease granted to Dalmia to the extent of 407 hectares of land in Kadapa district by the appellant’s father, an investment of Rs 95 crore was made into Raghuram Cements, a front company of Jagan. The CBI unearthed evidence to show this was part of illegal gratification for the favour received.
So far, the CBI has examined 140 witnesses including IAS officers and concerned Ministers and some crucial witnesses still remain to be examined. Considering the huge magnitude of transactions, various beneficiaries, companies/persons involved with Jagan and his associates, CBI urged for additional five-six months, although Court was willing to grant only four months time.