In a major development, the Enforcement Directorate (ED) has provisionally attached assets worth over ₹800 crore belonging to former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy and Dalmia Cements (Bharat) Limited (DCBL) in connection with a long-standing money laundering case.
The seizure stems from a 2011 CBI investigation, which unearthed allegations of quid pro quo investments and irregular mining lease transfers during the tenure of Jagan’s father, the late CM YS Rajasekhara Reddy. This latest action by the ED marks a significant escalation in the ongoing case.
ED’s Latest Attachment Order: Key Details
The provisional attachment order, dated March 31, 2025, was served to DCBL on April 15. As per the ED, the assets seized include:
- Shares worth ₹27.5 crore held by YS Jagan Mohan Reddy in three companies:
- Carmel Asia Holdings Limited
- Saraswati Power and Industries Private Limited
- Harsha Firm
- Land valued at ₹377.2 crore (current market worth ₹793.3 crore) owned by Dalmia Cements in Kadapa district.
The Allegations: Quid Pro Quo and Illegal Transactions
According to the ED’s findings:
- YS Jagan Mohan Reddy allegedly facilitated the transfer of a 407-hectare mining lease to DCBL in return for a ₹95 crore investment in Raghuram Cements, a company linked to him.
- He, along with V. Vijaya Sai Reddy and Puneet Dalmia, is accused of selling Raghuram Cements’ shares to French company PARFICIM for ₹135 crore, out of which ₹55 crore was allegedly paid in cash via hawala channels between 2010–2011.
Background of the Money Laundering Case
The case dates back to 2009–2010, when Jagan, then an MP, was accused of using his political influence to secure investments in his companies. The CBI’s 2011 FIR alleged that:
- Various firms invested in Jagan’s businesses in exchange for government favors.
- Land allotments, mining leases, and infrastructure contracts were misused to benefit select companies.
- A network of hawala transactions was used to illegally transfer funds.
Previous investigations under the Prevention of Money Laundering Act (PMLA) have already led to the attachment of assets worth ₹2,524 crore.
Legal Ramifications and Political Fallout
While Dalmia Cements stated that this seizure won’t impact their ongoing operations and that legal options are being considered, this action raises serious questions about Jagan’s financial dealings and political past.
As president of the YSR Congress Party (YSRCP) and a prominent figure in Andhra politics, this case could dent Jagan’s political credibility, especially with elections and party reorganization looming.
Notably, in 2019, the PMLA Appellate Tribunal had reversed an earlier attachment of ₹746 crore due to procedural flaws, suggesting a long legal road ahead.
What’s Next?
- The attachment is currently provisional and requires confirmation from the PMLA Adjudicating Authority.
- Both Jagan and DCBL have the right to appeal the order.
- With ongoing investigations, more revelations regarding Jagan’s network of companies and their financial transactions may surface.
Final Word
The ED’s move to seize ₹800 crore in assets is not just a legal milestone—it reflects the growing crackdown on corruption and illicit financial flows in Indian politics. As the investigation progresses, it could reshape the political narrative in Andhra Pradesh and beyond.
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