wp-naidu f
TRANSCRIPT
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IN THE HIGH COURT OF JUDICATURE: ANDHRA PRADESH AT HYDERABAD
W.P. No. OF 2011
Between
Y. S.Vijaya W/o late Dr. Y. S. Rajasekhara Reddy Aged about 55 years , Member of Legislative Assembly Honourary President, YSR Congress Party R/o Bakarapeta, Pulivendula Y.S. R. Kadapa District …. Petitioner And
1. The Union of India rep. by its Secretary, Ministry of Home, Shastri Bhavan, New Delhi
2. The State of A.P. Rep by its Chief Secretary Secretariat Buildings, Hyderabad 3 . The Government of A.P. rep. by its Principal Secretary, Home Department Secretariat Buildings, Hyderabad 4. The Central Bureau of Investigation rep by its Director, Shastri Bhavan New Delhi. 5. The Enforcement Directorate rep.by its Director 6th floor, Loknayak Bhavan, Khan Market New Delhi – 110 003
6. The Director General of Police A.P. Hyderabad 7. The Securities Exchange Board of India Plot No C4-A. G Block, Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 rep by its Chairman 8. Sri Nara Chandrababu Naidu S/o N. Kharjura Naidu Aged about 61 years, M.L.A, R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad 9. Smt. N. Bhuvaneswari W/o N. Chandrababu Naidu Aged about 55 years Occ. business R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
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10. Sri N. Lokesh S/o N. Chandrababu Naidu Aged about 28 years Occ. business R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad 11 . Sri Ch. Ramoji Rao S/o Venkata Subba Rao Kartha of HUF. Aged about 75 years Chairman’s Residennce, Ramoji Film City, Anajpur, R.R. District, Hyderabad – 501 512 12. Ushodaya enterprises Private Limited Somajiguda, Hyderabad, Rep.by Sri Ch.Ramoji Rao, Kartha of HUF 13. M/s. Heritage Foods (India) Limited 6-1-541/C, Panjagutta, Hyderabad – 500 082 Rep by its Managing Director Smt. N. Bhuvaneswari 14. Mr. Ahobala Rao S/o P.V. Subba Rao Aged about 51 years Occ. Business Plot No. 305A, Road No. 25 Jubilee Hills, Hyderabad
15. Sri V. Nagaraja Naidu S/o Rama Naidu Aged : Major, Occ: Business, R/o Plot No. 1178, Jubilee Hills, Hyderabad
16. Sri Yelamanchili Satyanarayana Chowdhary S/o Yelamanchili Janardhana Rao, aged about 50 years R/o Plot No. 29, Sagar Co-op. Housing Society Road No. 2, Banjara Hills, Hyderabad - 34 17. Madhucon Sugar and Power Industries Limited 1-7-70, Madhu Complex, Jubileepura Khammam – 507 003, Rep.by its Founder Sri Nama Nageswara Rao. 18 . Maganti Rajababu alias Murali Mohan S/o Maganti Madhava Rao, aged : Major , Occ. Business R/o A14, Film Nagar, Jubilee Hills, Hyderabad
19. Sri Karnati Venkateswara Rao S/o Kotaiah Aged about 50 years, Occ. Chairman, M/s. Kakinada Sea Ports Limited, 8-2-418, Meenakshi House, 3rd floor, Road No. 7, Banjara Hills, Hyderabad - 500 034
20. Sri Chintakunta Munuswamy Ramesh S/o Munuswamy Naidu, Aged : Major, Occ. Chairman, Rithwik group of Companies , 8-2-269/S/91/B, Road No. 2, Sagar Society Banjara Hills, Hyderabad - 34
… Respondents
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AFFIDAVIT FILED BY THE WRIT PETITIONER
I, Smt. Y.S. Vijaya, W/o late Dr. Y.S. Rajasekhara Reddy, aged
about 55 years Occ. Member of Legislative Assembly, Pulivendula
Assembly Constituency R/o Bakarapeta, Pulivendula, Y.S.R.Kadapa
District, having temporarily come down to Hyderabad, do hereby
solemnly affirm and sincerely state on oath as follows :
1. I am the petitioner herein and as such am well acquainted with
the facts of the case.
2. I respectfully submit that the present Writ Petition is being filed
in Public Interest seeking the indulgence of this Hon’ble Court under
Article 226 of the Constitution of India in regard to causing an
enquiry/investigation by an appropriate agency, like the Central
Bureau of Investigation into many acts of criminal misconduct
committed by the unofficial Respondents during the course of
governance of the State during the years 1995-2004 while being in
positions of power and authority.
3. I respectfully submit that, I am the wife of late Dr. Y.S.
Rajasekhara Reddy, the former Chief Minister of the State. I have
long been socially and politically conscious and have been following
the political and social scenario in the State of Andhra Pradesh. I am
a sitting Member of the Legislative Assembly from Pulivendula
Constituency having been elected in the year 2011 as a candidate of
Yuvajana Sramika Rythu Congress Party ( Y.S.R.Congress Party) a
registered political Party with the Election Commission of India. I am
the honourary president of the said Political Party. I have participated
in various social movements in the Assembly Constituency and have
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been organizing programs to create awareness about the rights of the
citizens to be governed efficiently and honestly.
4. a. I submit that there are several instances of wrong doing by the
private Respondents, who have acted in concert to ensure that there
has been wrongful gain and designed advantage to them and others at
the cost of the State exchequer. These activities have continued for
several years, and it is only recently, with the advent of the Right to
Information Act and the information obtained/received by the
Petitioner from time to time from various sources including the media,
the Registrar of companies, Land Registration Department, SEBI, AP
Government Orders, Tax departments and other credible sources that
many new documents have come to light that point at the culpability
of the private Respondents at the altar of criminal law. The offences
committed by them include those under the Prevention of Corruption
Act, the Indian Penal Code, the Prevention of Money Laundering Act,
FEMA, the Representation of the People Act, the AP Land Grabbing
Act and the Benami Transactions (Prohibition) Act.
b. In regard to securing information in the manner stated above,
I had to seek the help and contribution of many people, and primarily
including Sri Vijay Sai Reddy, Chartered Accountant, who has been
the financial advisor for the family since the year 1985.
c. I respectfully submit that I hereby affirm and state on oath
that I have no personal interest in the subject matter of this petition
and I hereby undertake to pay exemplary costs and/or compensatory
damages as directed by this Hon’ble Court in the event of contrary
finding upon adjudication by this Hon’ble Court that the writ petition
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is filed for extraneous/personal consideration or with an oblique
motive.
For the convenience of this Hon’ble Court, the various
instances of wrong doing and the documents evidencing the same by
the unofficial Respondents are given below.
5. Disproportionate Assets of Sri. Nara Chandrababu Naidu The Respondent No. 8
a. Born in 1951 in a lower middle class farmer’s family in
Chittoor District of Andhra Pradesh, Sri.Naidu went to Sri
Venkateswara University College, Tirupati, from where he
directly entered politics. As a result, for a continuous period
from 1978 to today (2011), Sri.Chandrababu Naidu had no
source of income apart from his political career and the income
from his original land holding. From 1978 to 1983, he was a
Congress MLA and functioned as Minister of State for Animal
Husbandry including development of poultry, sheep and pig
rearing, dairy development including Dairy Development
Corporation, Meat and Poultry Development Corporation and
Milk Supply Scheme (1980-81). He was a Minister of State for
Archives, Archaeology, museums including Salarjung museum,
Public Garden, Public Libraries, Cinematography, Film
Development including FDC (1981-82). And also in 1982 he
held three different ministries as Minister of State. He was the
Minister of State for ground water and APSIDC, Minister of
State for Minor Irrigation and Minister of State for Technical
Education and Indian Medicine. In the year 1983, he was
defeated as a congress contestant and subsequently joined his
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father-in-law’s Telugu Desam Party (TDP) and chosen as
Chairman of Andhra Pradesh Karshaka Parishad which was
challenged in this Hon’ble Court, and it was held that the said
appointment is illegal and unconstitutional.
b. He used his clout to raise loans from APIDC and APSFC.
Sri.Chandrababu Naidu became MLA for a second term in
1989 and he was an opposition MLA till 1994. In 1994, he
became Cabinet Minister for Finance and Revenue in Mr NTR
cabinet. On 1st September, 1995, taking advantage of rumors
that were deliberately spread by certain sections that Mr NTR’s
health was not good, Mr Naidu mobilized enough support of
TDP MLAs to overthrow Mr NTR under whose leadership,
hardly in less than a year before, the TDP was able to reduce
the Congress Party to a strength of 26 MLAs in a house of 294.
It was unconceivable that a tall and honest leader could be
overthrown so easily and so brazenly with impunity. This is the
biggest ever betrayal by any son-in-law against any father-in-
law in the history of this country. This became possible only
because of the support received by Mr Naidu from Sri Ramoji
Rao of EENADU paper. Sri Ramoji Rao nursed a grouse
against Mr NTR that despite his contribution to the growth of
TDP Mr NTR never bothered about him. He firmly believed it
was only because of the support extended by his news paper
that TDP got foothold in AP and that therefore he was
excepting to be respected by TDP. Mr NTR did not believe in
this theory that Ramoji Rao was instrumental in his political
ascendency. Therefore, the conflict between the two. The very
fact that Sri Ramoji Rao in a Sworn Affidavit before the
Hon’ble AP High Court, which is reproduced below, goes to
prover his role in promoting and nursing the TDP. He averred
as follows in WP No 27065 of 2006;
“I submit that until 1983 the congress was running State in
an unchallenged and unilateral manner for the past 30 years.
The Congress Party became a threat to the democracy and in
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view of the single party and individual rule by Indira
Congress, the opposition in the state was in emaciated
condition. It has been reduced to the status of a nominal
entity. The dictatorial rule of the congress proceeding without
any hindrance. I submit that as the opposition parties were
weak and were in helpless situation where they were unable to
do any thing inspite of misrule by the ruling party, Eenadu
played the role of opposition. I submit that in the elections of
the State Assembly held in 1983, the Congress for the first
time did not secure a majority in the elections and lost the
power to the newly formed Telugu Desam Party. I submit that
on the day of poling i.e. January 5, 1983, I issued a signed
editorial on the front page of Eenadu supporting the
manifesto of Telugu Desam Party and calling on the
electorate to vote for Telugu Desam Party giving cogent
reasons for the stance taken by me”.
Mr Ramoji Rao was actively promoting Mr Naidu as an alternative to
Mr NTR became the friend, philosopher and guide of Mr Naidu.
Together, they have successfully dethroned the mighty Mr NTR, who
openly talked of the unholy nexus between Sri Ramoji Rao and Sri
Chandrababu Naidu. Sri Ramoji rao's EENADU was having a market
share of nearly 70 percent among vernacular papers in AP in 1995.
So, he had phenomenal clout in molding public opinion. He continued
to extend full guidance and support to Mr Naidu, who over his nine
years tenure, became highly influential both in AP and Delhi. Sri
Ramoji never criticized Mr Chandrababu's policies of privatization,
clandestine allotments of State largesse’s on Government to
Government basis from the Singapore and Malaysian companies, and
pivotal policies of the Government during his tenure as Chief
minister. Sri Ramoji Rao has been the backbone of Chandrababu's
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political life in the last three decades whether in power or in
opposition. It is because of the patronage of Mr Naidu that Sri Ramoji
could violate the RBI Act and AP Chitfunds Act and AP Agricultuiral
land ceilings act etc with impunity. None of the Government
departments of either the Central Government or of AP Government
including the Income Tax deparment had courage to accept any
complaint against any of the business ventures of Sri Ramoji Rao. The
fact that the Dy Prime Minister of India and Union Defence Ministetr
went to Mr Ramoji’s residence to persuade Mr Naidu not to withdraw
support tio NDA Government in the wake of Gujarat riots, shows
clearly what was the power and influence Sri Ramoji Rao has been
holding on Mr Naidu. In a routine manner, all the TDP functionaries
and Ministers would regularly call on Sri Ramoji Rao to be in his
good books. Three National Parties viz the Bharatiya Janata Party,
the Communist Party of India and the Communist Party of India
(Marxists) had published different books on Sri.Naidu’s corruption
and misuse of power as Chief Minister of Andhra Pradesh.
It is significant to note that Sri N. T. Rama Rao did not bequeath
any property to his daughter Mrs. Bhivaneshwari. Also, Sri.Naidu’s
parents were farmers in Chittoor District which is in the most
backward region of the State (Rayalaseema) where there is no
agricultural income surplus.
a. Sri Chandrababu Naidu has inherited a meager extent of 2
Acres of agricultural land from his ancestral property by virtue
of family partition before 1986 situated in his native village of
Naravaripalle in Chittoor District. In an affidavit that was filed
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by Sri Chandrababu Naidu on 30.6.1988 in W.P.No.7606/1988
after his family partitioned the property on 1.4.1986, it is
averred by him that he sold his share of the land and bought
lands in Nindali and Vakhyam villages of Nellore, from which
his income was declared by him to be Rs.36,000 per annum. He
reiterated in the affidavit that he was an agriculturist selling
hybrid groundnut.
b. The spree of amassing property by the Respondent No. 8
appears to have commenced in Nellore District. He purchased
65 acres of agricultural land through his family members at a
low rate of about Rs.1000 per acre in 1985. Soon thereafter, a
further 250 acres were purchased benami by Sri.Naidu in Sy.
Nos. 19, 20, 119, 127, 129, 131, 132 and 138. The attendant
circumstances around the transactions and the physical state of
affairs in respect of the said property, as detailed hereunder, a
detailed investigation into which would unearth the facts in
regard to the same, clearly point out that the property is held
benami by the Respondent No. 8 .
i. The sources of funds for the initial 65 acres, and the latter
250 acres are the same, i.e. Sri.Chandrababu Naidu.
ii. The entire area of 315 acres, in a single stretch encircled
by a single farm compound with a fence that runs 12
kilometers in one long stretch.
iii. Electric pumpsets (carrying water for over 3 kms from
Kaivalya river and 2 kms from Ravooru Lake) were
applied for and obtained in Sri.Naidu’s name for the
purposes of the entire land bank of 315 acres.
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iv. On 25.08.2001, 4 transactions of large lands in these
tracts took place involving Sri.Naidu and his son Lokesh,
2 of which were gifts, and 2 were sales. Such a large
number of transactions to and fro are clearly suspicious
and lend confirmation to the fact that benami transactions
were abounding.
v. Apart from the above, large numbers of transfers of the
same lands at throwaway prices suggest severe evasion
of regulations and of land ceiling and benami transaction
law.
e. Investigation would also reveal 2 major offences continuing as
far as the lands are concerned;
i. The lands include several Government lands and four
large lakes, the occupation of which would inter alia
attract the provisions of the Andhra Pradesh Land
Grabbing Act. It is also pointed out that it squarely
violates environmental laws.
ii. As many as 14 acres of the land have been assigned by
the Government to Scheduled Castes & Scheduled
Tribes but illegally appropriated by the 8th Respondent
and members of his family.
f. Subsequently, in 1992, Sri.Naidu promoted a company known
as Heritage Foods (India) Ltd., which states in its Prospectus of
10.10.1994 that:
“During the period of 1983-88, Sri.Chandra Babu Naidu
was not associated with any industry or business
activity.”
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g. When as Chief Minister of the State, Sri.Naidu made the
declaration of his assets in 1999, it showed the value of about
Rs.7.83 crores, a massive and inexplicable leap, keeping in
view that his agricultural income had been declared only 10
years earlier as being Rs.36,000 per annum, and his income as
an MLA was Rs.650/- per month and as Director of Heritage
Foods was Rs.20,000/- per month.
h. Subsequently, 2 more declarations were made by Sri.Naidu in
2004 and 2009, on the eve of general elections, where the
valuations clearly exceeded Sri.Naidu’s known sources of
income, and also omitted mentioning several other assets of his.
Equally surprising was the exponential rise in the value of the
assets of Sri.Naidu’s immediate family – his wife who was
operating Heritage foods and his son who was a minor.
i. The chart of Mrs.Bhuvaneshwari’s – Respondent No. 9
holdings as per her husband’s declarations of 2004 and 2009
would indicate the nature and quantum of riches accumulated
during the period :
Description 2004 2009
Shares of Heritage Foods
19,24,893 26,65,413
Value of Shares of SCM Infra Developers Ltd.
NIL Rs.90.23 lakh
Value of Shares of SVEC Constructions Ltd
NIL Rs.10 lakh
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Gold (in gms) 966.70 2779.61
Silver (in gms) 8000 32700
Other assets Rs.25.42 lakh Rs.1265 lakh
Value of agricultural land
Rs.10 lakh Rs.900 lakh
Value of warehouse
NIL Rs.1049 lakh
The acquisitions in property, which is arithmetically a few
times over and above the earlier possessions, in the shortest
possible span of business time and equal time spent in political
pursuits by the family, clearly indicate that the sources of
income which enabled such acquisition of assets are clearly
illegitimate and defy an alibi of natural course of events. The
possessions of the family continue earned and held during the
period of time, continue the line adopted hitherto… the family
members of the Respondent No. 8 hold in trust, the possessions
of the Respondent No. 8 benami while the Respondent No. 8
exercises all the rights of a true owner of such property and
assets and the source of these funds being untraceable, it is
clear that the said assets have been acquired from out of the ill-
gotten earnings of the Respondent No. 8 who amassed wealth
by abusing his official position and by his corrupt methods
while being in power and authority, being the Chief Minister of
the State.
ASSETS OF SRI NARA CHANDRABABU NAIDU BETWEEN 1999 TO 2009
(Figures in Rupees)
SR. NO.
CATEGORIES OF ASSETS
CHANDRABABU NAIDU
2009 (As per the affidavit to
Election
2004 (As per the affidavit to
Election
1999 (Property Values)
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Commission) Commission)
1 CASH 23,400 27,594 46,016
2 DEPOSITS IN
BANKS & NBFCs 11,26,453 4,94,372 1,28,361
3 SHARES -- -- 1,20,77,280
4 POSTAL SAVINGS
& LIC 1,000 1,000 --
5 PROVIDENT
FUND -- -- --
6 MOTOR
VEHICLES 2,22,500 2,22,500 1,00,000
7 GOLD -- -- --
8 SILVER -- -- --
9 PRECIOUS
STONES -- -- --
10 OTHERS -
INTEREST / CLAIMS
-- -- 22,45,656
11 AGRICULTURAL
LANDS -- -- 40,00,000
12 NON-
AGRICULTURAL LANDS
3,30,00,000 30,00,000 2,00,00,000
13 COMMERCIAL &
RESIDENTIAL BUILDS.
-- -- --
14 HOUSE / APARTS. 8,89,75,000 1,20,78,000 1,50,00,000
15 OTHERS -
INTEREST IN PROPERTY
-- -- --
TOTAL 12,33,48,353 1,58,23,466 5,35,97,313
NOTE: Liabilities not included in the chart
ASSETS OF NARA BHUVANESWARI BETWEEN 1999 TO 2009 (Figures in Rupees)
SR. NO.
CATEGORIES OF ASSETS
BHUVANESWARI
2009 (As per the affidavit to
Election Commission)
2004 (As per the affidavit to
Election Commission)
1999 (Assets Details
Only)
1 CASH 32,200 14,800 Rs.7,36,932
2 DEPOSITS IN
BANKS & NBFCs 14,31,619 13,75,870
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3 SHARES 17,02,12,426 16,70,57,430
11,23,100 shares Heritage & Rs.28,01,100 investments in
others
4 POSTAL SAVINGS
& LIC -- -- --
5 PROVIDENT
FUND -- -- --
6 MOTOR
VEHICLES 91,92,945 -- --
7 GOLD 34,69,545 5,95,487 966.7 gms
8 SILVER 5,80,390 92,200 8 kgs
9 PRECIOUS
STONES -- 90,000 --
10 OTHERS -
INTEREST / CLAIMS
12,65,37,192 25,42,807 --
11 AGRICULTURAL
LANDS 9,00,00,000 18,30,000
10.23 acres @ Nindali
12 NON-
AGRICULTURAL LANDS
0 47,51,670 2.92 acres @ various places
13 COMMERCIAL &
RESIDENTIAL BUILDS.
5,69,70,000 1,50,62,000 650 Sq. Yards @ Panjagutta
14 HOUSE / APARTS. 0 0 0
15 OTHERS -
INTEREST IN PROPERTY
10,49,63,700 0 32% in Sri Rama Agri
Farm TOTAL 56,33,90,017 19,34,12,264 Not Available
NOTE: Liabilities not included in the chart
ASSETS OF NARA LOKESH BETWEEN 1999 TO 2009 (Figures in Rupees)
SR. NO.
CATEGORIES OF ASSETS
LOKESH
Assets as of date as per the
declaration of Sri N. C. Naidu
1999
(Assets Details Only)
1 CASH Rs.1,45,546
2 DEPOSITS IN
BANKS & NBFCs Rs. 12.26 lakhs
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3 SHARES Rs. 284.83 lakhs
31,500 shares in Heritate &
6,25641 shares in others
4 POSTAL SAVINGS
& LIC
5 PROVIDENT
FUND Rs. 12.90 lakhs
6 MOTOR
VEHICLES Rs. 8.76 lakhs
7 GOLD
8 SILVER
9 PRECIOUS
STONES
10 OTHERS -
INTEREST / CLAIMS
11 AGRICULTURAL
LANDS
11.60 acres in Karnataka & Maharashtra
excluding the gift of 5 acres of land
from his grandmother in
madinaguda, near HITECH City,
8.9 acres @
Nindali
12 NON-AGRL.
LANDS
13 COMMERCIAL &
RESIDENTIAL BUILDS.
14 HOUSE / APARTS. Rs. 2.36 crores
15 OTHERS -
INTEREST IN PROPERTY
33% share in
Sri Rama Agri Farm
TOTAL Not Available NOTE: Liabilities not included in the chart
The compilation of the above chart including the details of the assets
amassed by the Respondent No. 8 and his family members clearly indicate
that the nature and value of their possessions could not be secured by known
sources of income legitimately earned having regard to the modest
beginnings of the family. The details of acts of official favours, nepotism,
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blatant misuse of official machinery and the consequential benefits conferred
and received by private individuals and entities compromising public
interest, revenues of the State, show that the assets amassed by the family of
the Respondent No. 8 is out of the monies received by him as quid pro
quo for the conferment of doles and largesse to private individuals and
entities.
j . Investigation also needs to be carried out as far as Sri.Naidu’s mother
Smt.Ammanamma’s transactions are concerned. Admittedly, the only
property that she inherited was 2 acres from Sri.Naidu’s maternal
grandparents in Kuppam village. However, in 2000, she purchased 5 acres of
land in Sy. No. 59 of Madinaguda Village of Hyderabad, from one Jasti
Panduranga Vittal near Hitec City for Rs.40 lakhs and also a plot of 1,135
sq.yds. in the upmarket Banjara Hills area of Hyderabad for Rs. 35 lakhs..
k. Exactly a year later, both pieces of property are gifted by
Smt.Ammanamma to Sri.Naidu’s son Lokesh. Clearly, with no known
sources of income for carrying out these huge purchases, these transactions
are also benami by Sri.Naidu, using his mother for that purpose.
l. The said property was sold to one Mr. J. Satyanaryana within one year
thereafter, who is the father of Ms. Sudha Saradha, W/o Sri Nagaraja Naidu.
After such sale, the said Sri Satyanarayana gifted back the property to Ms.
Sudha Saradha. The line and sequence of transactions and the close
proximity of Sri Nagaraja Naidu with the family of the Respondent no. 8
would show that notwithstanding the ingenious, complex and convoluted
route of transactions to erase any link to the family in respect of those assets,
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the property journeyed back to the benami possessions of the family of the
Respondent no. 8.
m. It is pertinent to mention that one Sri D. Ranveer was holding 19 acres
of land in Sy. No. 51 of Madinaguda Village out of which he sold 10 acres
to Sri Bhaskara Rao and 9 acres to Sri Panduranga Vittal. Sri Panduranga
Vittal, in turn sold five out the nine acres to Smt. Amanamma in the manner
detailed above.
n. Sri Bhaskara Rao in turn sold five out of ten acres to one Smt. Sudha
Sarada W/o Sri Nagaraja Naidu who later on sold the same to Smt.
Bhuvaneswari W/o the Respondent No. 8. Thus the family of Respondent
No. 8 owns 10 out of 19 acres in Sy. No. 51 of Madinaguda village and the
entire extent of 19 acres is encircled by a wall and catered to commonly. In
all the business initiatives of the family of the Respondent No 8, Sri
Nagaraja Naidu is the crucial operator. He was a public servant before
joining hands with the Respondent No. 8 in the loot of the State’s assets. He
is a Director of all the group companies of the business initiatives of the
Respondent No. 6 including heritage group, nirvana group etc.
6. Other investments and assets of Sri. Naidu and his family
a. On 19-10-1994, at the time of publication of prospectus of Heritage
Foods India Ltd., Sri Naidu as Managing Director has declared that he is not
associated with any industry or business activity. But at that time, Sri Naidu
promoted M/s. Bhuvaneswari Carbides and Chemicals Pvt. Ltd., and
Bhuvaneswari Carbides and Alloys Pvt. Ltd., Both these units have
borrowed from the banks and financial institutions, this fact was concealed
in the prospectus deliberately.
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c. It is pertinent to note that the investment made by Smt
Bhuvaneswari and Sri Lokesh in the year 1999-2000 continued
till today in M/s. A 2 Z E multisoft Pvt.Ltd later changed the
name as M/s Bizpro Technologies Pvt.Ltd, has not been
declared in statement of assets and liabilities submitted to the
Election Commission of India and State Legislature of Andhra
Pradesh, a perjury liable for prosecution.
d. It is a mystery as to how Sri.Chandrababu Naidu could promote
a posh Three Star hotel in the most expensive area of Tirupati
immediately after joining TDP in 1983. Nobody knows how he
could mobilize the equity. He later sold this property to another
TDP functionary, who was later made Kadapa ZP Chairman.
7. Rama Agricultural Farms
a. In 1989, a family firm called Rama Agricultural Farms
consisting of Sri.Naidu’s mother, wife, son and a relative of
them named P.Dasaiah Naidu purchased 3.276 acres of land in
Kondapur, at a distance of only half a kilometer from Hitec
City, for Rs. 1,00,000 at a rate of Rs.30,487 per acre. The
sources of these funds remain unknown.
b. In 1996, an announcement is made by the Government headed
by Sri.Naidu that an Infotech park called Hitec City would be
established in the area abutting Kondapur. With this
announcement, the value of the land held by Rama Agricultural
Farms multiplies, providing substantial pecuniary benefit to the
holders of the land.
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c. In the year 1995, Sri P.Dasaiah Naidu exited from Sri Rama
Agricultural Farms as partner, but continued as Managing
Director of the said firm.
d. On 4.4.1998, a company named Dr.Reddy’s Laboratories gets a
sales tax deferment of Rs.25 crores for 14 years from the State
Government headed by Sri.Naidu. This itself is questionable as
such exemption is given only to a new industry/Unit.
Dr.Reddy’s was founded in 1984, and is an established, listed
company on both the NSE and the NYSE with revenues of
$1.67 billion.
e. In the year 2000, 3.14 acres of land held in Rama Agricultural
Farms is sold to one Sri.Satish Reddy, S/o. Dr. K. Anji Reddy
of Dr.Reddy’s Labs and Smt. Deepti Reddy, wife of Sri Satish
Reddy for more than Rs.3 crores, when the market price of the
land was only about Rs.12 lakhs. The sequence of events of
doling out exemption to a corporate entity and the family of the
Respondent No. 8 entering into a sale transaction of the piece of
land, at a value far in excess of the market price, would indicate
that the monies to be paid as illegal gratification for the official
favour, were disguised and paid as market value for the land by
the corporate entity.
f. This land is then developed by Sri.Satish Reddy with one
Divyasree Soft Tech Realtors Pvt. Ltd., and a massive 5,00,000
sq.ft office space is built in a phased manner, which has now
been leased to Google™ at a whopping of Rs.2 crore per
month. This property is alleged to be the property of Sri
- 20 -
Chandrababu Naidu held in the name of Divyasree Group as his
benami.
g. The Government then allotted an extent of Seven (7) acres of
land in favour of a company belonging to the group of
Divyasree Soft Tech Realtors Private Limited, under the guise
of the State policy of allotment of land to software companies
in the area of 600 acres earmarked for software development in
Kondapur. Various ingenious methods were devised to ensure
that the State Policy and the State largesse ends up in the hands
of the private individuals and firms which have had transactions
with the family of the Respondent No. 8.
h. Sri Naidu who was the pivotal policy maker of the State when
he was the Chief Minister selectively leaked the policy
formulations of the State in advance for the benefit of
individuals and private entities who are related to him. The site
and location of infrastructural projects envisaged or potential
sites for such development was leaked out to the firms and
entities owned and promoted by Sri Ramoji Rao, Sri.Maganti
Murali Mohan of Jayabheri Properties and the location and the
extents of lands owned by the above named individuals/entitites
and several others are the direct evidences in this regard. All
such favours need to be examined and misuse of power
amounting to loss of hundreds of crores of rupees to the
innocent farmers and land owners ought to be suitably
redressed.
- 21 -
8. Sri.Nara Lokesh
a. Sri.Nara Lokesh, the only son of Sri.Naidu studied in
Hyderabad upto his intermediate education. He was a mediocre
student and never had any scholarships to his credit, finally
clearing his Science stream at the intermediate stage with just
over 50%. However, Sri.Lokesh obtained his Bachelors Degree
(1997-2000) from the prestigious Carnegie Mellon University
and his Masters (2000-2002) from Stanford University in the
USA. As Sri.Lokesh did not have the necessary grades, it was
necessary for large endowments to be made to the Universities
to consider him for admission. The amounts that were donated
from unknown Indian sources were Rs.1o crore to Carnegie
Mellon and Rs.12 crore to Stanford. There is reason to believe
that these payments came from the accounts of Satyam’s
Sri.Ramalinga Raju in return for the various benefits offered to
him.
b. Another unanswered question was the funding of huge
educational and living expenses amounting to USD 240000 of
Sri.Lokesh which were not reflected in the Income Tax records
of any of his family including Sri.Naidu.
c. Sri Nara Lokesh has no source of income even as a minor and
subsequent to attaining majority in 2001 as evidenced by his IT
returns. However, he acquired Lands at Nindali village in
Nellore Dist of AP and near Bangalore and Mumbai worth of
hundreds of crores, apart from the prime property ‘gifted’ to
him by his grandmother.
- 22 -
d. Sri Lokesh has been consistently increasing his stake in
Heritage Foods India Limited from nil to 9%. He has
substantial stake in holding and investment companies viz.,
Nirvana Holdings Private Limited, Nirvana power limited,
Nirvana logistics and warehousing limited, Nirvana energy
limited, Nirvana estates private limited, Niravana Packing
private limited, Niravana media private limited, Megabid
Finance and investments private Ltd, Heritage foods retail
limited, Heritage onpro limited, heritage agro marine private
limited, Heritage Fin Lease Limited, Bizpro Technologies
Limited, Red Hill logistics and warehousing private limited and
Heritage international limited, all of which are from unknown
sources.
e. Sri Naidu has evidently used his mother, his wife and his son to
be the conduits of money laundering, and also to obtain benefits
from the various corporate houses that he has favoured. Apart
from these three family members among others, he has also
utilized the services of several small time businessmen, in
making them the recipients of State largesse and the benamis
for his illegal transactions, rewarding them both financially and
with posts in the TDP, apart from the prestigious Rajya Sabha
seats for certain favourites.
9. Bhuvaneshwari Carbides
c. In 1984, two companies were founded by Sri.Chandrababu
Naidu and his wife. One was named Bhuvaneshwari Carbides
and the other Bhuvaneshwari Alloys. Bhuvaneshwari Carbides
was granted a loan of Rs.40 lakh from the Andhra Pradesh State
- 23 -
Finance Corporation (APSFC), which was secured by
mortgaging 5 acres of land in Renigunta. It is unexplained as to
why these lands in Renigunta were not mentioned in the
declarations by Sri.Naidu or how he and his wife came to own
the same. The loan was to be repaid in 8 years.
d. In 1987, one Sri. Sridhar Chowdary was made the Director of
both the companies, though it is unclear what Sri.Chowdary’s
professional qualifications were, and whether any business was
being carried on by the companies at all. It would however be
important to note that Sri.Chowdary’s wife, Smt. Renuka
Chowdary was a Rajya Sabha MP owing allegiance to the
Telugu Desam Party for two terms from 1986 to 1998 and also
the Chief Whip, Telugu Desam Party in Rajya Sabha for two
terms. Despite the stewardship of Sri.Chowdary, the loan was
not repaid to APSFC, which was an undertaking of the State
Government within the 8 year period. There were no attempts
by Sri. Naidu’s Government to recover the dues during the 2
stints enjoyed by Sri. Naidu at the helm of affairs.
e. Suddenly and inexplicably, in 2001 while Sri. Naidu was the
Chief Minister, a one-time settlement was entered into between
Bhuvaneshwari Carbides and APSFC for a measly Rs.11 lakh
(a quarter of the loan amount of 17 years ago), despite the fact
that the land mortgaged to APSFC was worth about Rs.10
crores at the time.
f. This is a glaring instance of the State machinery being directed
to do the Chief Minister’s bidding to benefit himself, and
- 24 -
continue owning and possessing the very valuable land at
Renigunta. This also amounts to a blatant abuse of position by a
public servant to cause pecuniary advantage to another, as well
as swindling the State exchequer.
10. Heritage Infra Developers
g. Heritage Foods and Heritage Infra Developers are 2 companies
promoted by Sri.Naidu’s wife N.Bhuvaneswari and son Lokesh.
Having common directors, it is these two companies that are
primarily responsible for facilitating the wrongdoing of Sri.
Naidu and in covering up his illegal transactions, including
those involving money laundering and flow of foreign funds
into the country. The modus operandi followed was to transfer
assets of Heritage Foods (a widely held public limited
company) to Heritage Infra Developers (a closely held private
company) at throwaway prices, thereby circumventing
regulations to benefit Sri. Naidu and his family.
h. In 1995, on behalf of Heritage Foods India Ltd., Smt.
N.Bhuvaneswari ostensibly purchased 3 acres of land in survey
Nos 56 and 57 in Kondapur area for Rs.12 lakhs, under 6
separate transactions of 0.5 acres each. This amounted to a
payment of Rs.82/ -per sq.yd. In 2003, 1286 sq. yds. of this
land was sold for 12.8 lakhs at Rs.1,000/ per sq.yd.
i. In 2008, Heritage Foods sold the 3.23 acres in the same survey
No., i.e. 56 and 57 of Kondapur area to Heritage Infra
Developers for Rs.2.85 crores, at less than Rs.1700/- per sq.yd.
This was in a stark and glaring contrast to the then land prices
in Kondapur area that are not less than Rs.25,000 per square
- 25 -
yard. Interestingly, the actual land holding in this survey
number by Heritage foods is only 3 acres but the company sold
nearly Ac. 3.34 guntas. So, it is amply clear and evident that
Heritage foods India limited grabbed the land and legalized it
with the help of then Chief Minister none other than Sri. Naidu.
j. In 1995, Mrs. Bhuvaneswari also bought 928 sq. yds. in
Kothaguda village next to Hyderabad for Rs.1.38 lakhs on her
name and subsequently in the year 2000, this land was sold to
Heritage foods India limited for Rs.4.64 lakhs. However,
inexplicably, the same land was sold in 2008 by Heritage Foods
to Heritage Infra for Rs.92.90 lakhs. There are severe
discrepancies in the valuation of the lands, which is contrary to
any corporate prudence. In any case, the subsequent
transactions ensure there is no doubt as to the object of these
exchanges.
k. In 2008, after the various transfers of assets have taken place to
Heritage Infra, 64% of its shares are sold for about Rs.3 crores
to Srichakra Merchandising Pvt. Ltd., a company indirectly
owned by one Sri. Yelamanchili Satyanarayana Chowdary alias
Sujana Chowdary.
l. Thereafter, Heritage Infra merged with Srichakra
Merchandising and changed its name to SCM Infra. The lands
of the company are then mortgaged in June-July 2008 by SCM
Infra with Maharashtra’s STATE INDUSTRIAL &
INVESTMENT CORPORATION OF MAHARASHTRA
LIMITED (SICOM LTD) toward a loan of Rs.45 crores. It is
significant that the land which only earlier in the year was
- 26 -
accepted by Heritage Foods to be worth a little more than Rs.3
crores was the only security for the loan, and this land was
valued at a whopping Rs.85 crores. It is also important to note
that this loan which is a debt of the company is given partly to
Sri.Sujana Chowdary’s Sujana Towers limited and partly to
SCM Infra.
m. The possibility of coincidence gives way to criminal concert
and deliberate design when it is considered that very same
Sri.Sujana Chowdary is a sitting TDP Rajya Sabha MP, against
whom there are several other cases pending as well. Sri. Naidu
and Sri. Chowdary are close associates, often photographed
travelling abroad together to raise funds for the party. It is
submitted that Sri. Chowdary owns nearly 100 companies, most
of which are sham, and are merely conduits for the passing of
hawala money, that not only partly fund the election expenses
of the TDP, but also the lavish lifestyles of its leaders.
n. It is submitted that the transactions between these companies
were so timed to ensure the influx of funds in the run-up to the
Andhra Pradesh Legislative Assembly Elections in May 2009.
Importantly, shortly after this transaction, Mrs. Naidu resigned
from the company as director. The money that came in cash
from Sujana Chowdary was for campaign funding, which was
used in the May 2009 elections.
o. There exists evidence of 20 companies belonging to Sri. Sujana
Chowdary which received large amounts from abroad, which
were followed by cash withdrawals at the time of the 2004
- 27 -
elections. It is obvious that the same methods were utilized for
the 2009 elections as well.
p. There are several ingenious ways and means adopted by Sri.
Naidu to launder his money through Sri.Chowdary and his
group companies. Sri.Chowdary first established a slew of
companies to bring Sri.Naidu’s money under the corporate
umbrella. Sri.Chowdary created circular transactions among his
corporate entities, thereby orchestrating Purchases and Sales
entries running into thousands of crores, so that funds could be
moved through books of accounts very effectively and without
attracting income tax provisions. However, in the process,
Sujana Group was forced to face many Excise and Sales Tax
cases. Due to the habitual nature of the Group, these cases are
litigated at various stages of the appellate legal process. A
cursory glance of the modus operandi given below would give
more insight to the scheming and structuring of the total money
laundering operations.
q. The Total Turnover of Sujana Group companies having
manufacturing facilities - Sujana Universal Limited and Sujana
Metals Limited (the flagship companies of the Group) - for the
financial year 2008-09 was Rs.2149.33 Crores. On the other
hand, the group companies which indulged in circular
operations involving only trading of Steel Produced by group
flagship companies amounted to Rs.4639.38 crores. A perusal
of Purchases and Sales and Net Profit given below, shows the
clandestine operations indulged by the Group:
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NAME OF THE COMPANY PURCHASES (Rs. IN CRORES)
SALES (Rs. IN CRORES)
NET PROFIT (Rs. IN LAKHS)
TEJASWINI ENGINEERING PVT LTD
542.28 545.10 30
FUTURETECH INDUSTRIES LIMITED
457.05 462.88 44
HANDUM INDUSTRIES LIMITED
194.92 190.96 (-)534
GANGA EXIM PRIVATE LIMITED
320.97 326.61 24
GANGA INDUSTRIAL CORPORATION LIMITED
479.16 456.83 (-)2137
OMICRON BIO-GENESIS LIMITED
565.90 567.92 59
ENDEAVOUR INDUSRIES LIMITED
327.82 333.39 67
GODAVARI EXPORTS AND IMPORTS PRIVATE LIMITED
325.62 327.71 83
GLOBAL FORGINGS LIMITED 638.28 648.80 14 TEJDEEP ENGINEERING ENTERPRISES PVT LTD
366.59 371.37 16
VICTORIA STEEL ENTERPRISES LIMITED
401.12 400.12 16
GLADE STEEL PRIVATE LIMITED
7.51 7.69 25
TOTAL
4627.22 4639.38 378
FUNDS MOVED THROUGH THE BOOKS OF ACCOUNTS FOR THESE COMPANIES FOR THE SAME YEARS WERE AS FOLLOWS:
Name of the company
Inflow of funds RS IN CRORES
Out flow of funds RS IN CRORES
Share Capital
Share Application money
Unsecured loans
Funds from Debtors
Total
Funds paid to Creditors
Advances
Other
Total
TEJASWINI 21.51 30.04 376.00 427.55 420.24 5.98 426.22
FUTURE TECH INDUSTRIES
16.45 90.02 23.53 341.14 471.14 362.00 48.45 65.58 476.03
- 29 -
HANDUM INDUSTRIES
0.71 292.70 293.41 269.24 25.70
294.94
GANGA EXIM
4.43 281.34 285.77 297.97 297.97
GANGA INDUSRIAL CORPN LTD
37.79 446.73 484.52 316.55 115.52 52.46 484.53
OMICRON BIO-GENESIS
14.00 89.04 497.30 600.34 520.15 75.46 4.41 600.02
ENDEAVOUR INDUSTRIES
16.49 268.30 284.79 284.72 284.72
GODAVARI EXPORTS AND IMPORTS
19.48 19.65 298.80 337.93 295.58 16.09 13.05 324.72
GLOBAL
FORGINGS
36.58 30.44 405.00 472.02 396.58 70.05 0.44 416.07
TEJDEEP ENGINEERING
13.43 36.29 303.67 353.39 334.48 10.84 4.59 349.91
VICTORIA STEEL ENTERPRISE
13.45 36.09 356. N40
405.94
309.56 93.06 3.39 406.01
GLADE STEELS
0.23 8.40n 8.63
8.60 8.60
TOTAL 4425.43 435.45 4369.74
- 30 -
As against the physical moment of funds of Rs.4425.43 crores
on the face of the Balance Sheet, an amount of Rs 435.45 crores
was shown as withdrawn as advances. Ostensibly, 2009
elections were funded by Sri. Naidu using the vehicle of Sujana
Group and making Sri. Chowdary the beneficiary of the coveted
MP post. Sri Chowdary, continued his nefarious activities,
setting up the entities even outside India. He used the tax-
havens of the Cayman Islands, Mauritius, Hongkong and Dubai
for this purpose. The money laundering operations have used
the Invoice Financing Facility route, which is in vogue for such
kind of operations.
r. The modus operandi used by Sri. Chowdary for the quid pro
quo beneficiaries of Chandra Babu Naidu Government, has
been to accept the tainted money in those countries and in
return, invoices would be discounted by the banks/financial
institutions in Cayman Islands, Mauritius, Singapore, Dubai or
Hong Kong and the monies would be remitted to India as
export income and funds would be withdrawn as narrated in the
paragraphs mentioned above.
NAME OF THE COMPANY
PURCHASESRS IN
CRORES
SALES RS IN
CRORES
NET PROFIT RS IN
LAKHS PAC VENTURES PTE LTD.,SINGAPORE
350.99 352.02 51
NAUNCE HOLDINGS LIMITED, HONGKONG
71.74
72.83 20
- 31 -
s. The following are some of the cases registered against the
Sujana Group:
1.Directorate of Revenue Intelligence, Chennai and Vizag:
Notification 53/97, dated 03.06.97 and Order No. 01/2008
dated 16.12.2008
Duty and Penalty: Rs.27.10 Crores.
2. Asst. Commissioner of Central Division VI, Customs and
Central Excise, Hyderabad.
Notice V/7215/116/98, ADJN dated 31/07/1998
Penalty : Rs.67.49 Lacs.
3. Asst. Commissioner of Central Division VI, Customs and
Central Excise, Hyderabad.
Notice V/7215/7/200 ADJN dated 3/3/2000
Penalty: Rs 12.24 Lacs.
4. Development Commissioner, Vizag
SEZ order No 8/EOUS/ADJ/QPR-242/VSEZ/2005/68 dated
04.01.2006
Penalty: Rs 100 lakhs
5. Commissioner of Customs and Central Excise Hyderabad-1
Order No.SCN92/2008/25.06.2008
Order No. 04/2008 dated 25-6-2008
Tax and Penalties: Rs.10.20 Crores
6. Additional commissioner of Customs and Central Excise,
Hyderabad-1
Order No. SCR OR No.89/2008 Hyderabad-1 ADJN,
Duty and Penalty: Rs.68.41 Lakhs
7. Dy.Commissioner, Panjagutta
Commercial tax order
Penalty: Rs.5.22 crores
8. CTO Srinagar colony,
for assessment year 2003-04
Penalty: Rs. 4.93 crores
- 32 -
9. CTO Srinagar colony,
On Deemed export turnover for FY 2002-03
Penalty: Rs.49 Lakhs
10. CTO Srinagar colony for AY 2004-05
Penalty: Rs.Rs.5.16 crores
11. Fraud case in respect of MoU with NAFED under
investigation of CBI for Rs.43.46 Crores for duty evasion.
In light of the above prima facie evidence of money laundering by
Sri.Chandrababu Naidu through the Sujana group of companies,
necessary directions are prayed to be issued to Sri Yalamanchili
Satyanarayana Chowdary, Chairman of Sujana group of companies to
submit to the High Court all the bank statements since 1995 till date in
order to facilitate further investigation.
11. Krishna Godavari (KG)Basin
t. The Krishna-Godavari basin is home to one of the most
lucrative gas deposits in the world, as was discovered in 2002,
and estimated to be almost 40 times that of the Bombay High
basin. While the basin is located in the State of Andhra Pradesh,
the Government under Sri.Naidu chose to turn an obliging blind
eye to its rights to the discovery on its soil, while allowing
Sri.Naidu’s close associate Sri.Ramoji Rao to be the vehicle of
the quid pro quo. In fact, there was also a note/letter to
Sri.Naidu by the senior officers of the Government cautioning
him that the State of AP should also bid for the gas by forming
a company like Gujarat had done. This piece of advice was
wholly ignored by Sri.Naidu. In the process of exploring gas
reserves in KG basin, Reliance industries indulged in many
- 33 -
violations by hindering fishermen and polluting large extent of
waters which caused unaccountable damage to environment and
marine life. Instead of defending the rights of local people and
protecting the environment, Sri. Naidu kept a blind eye and
even encouraged Reliance group of Industries with heavy
exemptions and incentives.
u. Sri.Ramoji Rao’s company Margadarsi Financiers had fallen on
hard times in the year 2007 when its irregularities and
violations became public. Subsequently a committee of enquiry
was constituted by Govt. of AP which revealed that Rs.2,600
crores of money was collected from public by violating Reserve
Bank of India norms and regulations and it was declared that it
was impossible for the company to repay its several depositors.
Despite the fact that almost all of Sri Rao’s companies were in
severe financial difficulties, Sri Rao surprisingly offered
through the news media to repay the full amount of Rs.2600
crores due to the depositors. This was followed by an assurance
by him to this Hon’ble Court following which the amount due
was repaid. A large portion of amount of so called deposits
accounting to nearly Rs.275 Cr was declared as unclaimed
initially. The same is deposited with the Union Bank of India in
an escrow account.
v. In consideration for the favour done by the Respondent No. 8
in allowing the State’s K.G.Basin claim to be brushed under the
carpet, the Reliance group facilitated the payout of Sri Ramoji
Rao’s debts to his depositors. This was carried out through
known associates and friends of Sri Mukesh Ambani.
- 34 -
w. Two of these known associates of Sri. Ambani and the Reliance
Group are Sri.Nimesh Kampani and Sri.Vinay Chajlani.
x. Sri.Nimesh Kampani extended himself in ensuring that
Sri.Ramoji Rao would be bailed out. Within a short span of 37
days between December 2007 and January 2008, six “shell
companies” were floated on three addresses, which are shown
as Sriram Mills Compound, Worli, which is the official address
of Reliance Industries Limited. Reliance diverted Rs.2604
crores of its shareholders money through the shell companies to
Ms.Kampani’s Equator Trading India Limited and
Sri.Chajlani’s Anu Trading.
y. It is inexplicable that within 23 days of the very company
Equator Trading India Limited being registered, Sri.Ramoji Rao
entered into an agreement with that company, which had no
known expertise or business. Several documents were also
submitted to the Registrar of Companies regarding these
transactions. Of the Rs.2604 crore of Reliance money diverted
through shell companies, Rs.1,454 crore was routed through
Equator Trading, while Rs.1,150 crore was through Anu
Trading. Despite Sri.Ramoji’s Ushodaya Enterprises having
incurred a loss of Rs.59.19 crore, these companies purchased its
Rs.100 shares at an astronomical premium of Rs.5,28,630 per
share. Form 2 dated 30.1.2008 filed by Ushodaya Enterprises
with ROC shows shares allotted to Equator Trading Enterprises
Ltd at a premium of Rs 5,28,630 per share. The curious part of
- 35 -
the valuation exercise that preceded this grand purchase was
that a library comprising film rights of the telugu movies in
which thespians like Sri N.T. Rama Rao and A.Nageswara Rao
among others acted, was shown as an asset of Ushodaya
Movies one of the proprietary concerns in the HUF of Sri
Ramoji Rao at Rs. 1200 crores. The said proprietary concern
had a carry forward loss of around Rs. 1200 crores and the asset
was shown as having been sold to Ushodaya Enterprises Private
Limited, and shown as an asset of Rs. 1200 crores in the
Company which was factored in while valuing the enterprise
value of the said Company, leading to a buy-out of a stake at a
an astronomical premium unheard of in commercial history in
the country. The twin advantages of the above operation are
that Ramoji Rao HUF in which Ushodaya Movies is a
proprietary concern, had the accumulated losses set off by the
profits shown in the transaction of sale of film rights to the
Company and the Company had swollen its asset base, which is
notional, in the form of rights in respect of those movies, which
have been taken into consideration for arriving at the enterprise
value of Ushodaya Enterprises Private Limited at Rs. 6500
crore. No dividend has been declared by the above Company
which is valued to be flourishing and it is a sham transaction
which is not imbued by considerations of gain and commerce
and it is clear that the laundered money has been infused to
protect the interests of Sri Ramoji Rao.
- 36 -
z. The following issues arise for consideration having regard to
the unnatural course of events leading to Ushodaya Enterprises
being bailed out of its financial constraints in complete defiance
of commercial prudence and established market practices :
i. The interest shown by Reliance group in coming to the
rescue of Ushodaya Enterprises headed by Sri Ramoji
Rao, whose proximity to the Respondent No. 8 and his
family is well-known, so as to impel it to invest in a loss
making firm of Ushodaya Enterprises is clearly in
defiance of any prudent profit-based corporate entity.
ii. The conduit for the above act of altruism shown by
Reliance since as per market norms, Reliance does not
get gain any returns by virtue of that investment.
There is no doubt, that just as has been discovered in the 2G Spectrum Scam
case, that the above was a payoff by Reliance towards non-interference / non
participation in the bidding process by the Government of AP in the KG
Basin issue. Undoubtedly, Sri Naidu was a monetary beneficiary as well,
and it is these funds that also have permitted him and his family to acquire
such vast assets amounting to several hundred crores. The flow chart of
funds evidencing the trail of money is depicted below.
- 37 -
- 38 -
The above structure has been designed in such a manner that it
can be dismantled at any point of time to enable Sri.Naidu to
acquire control over the Special Purpose Vehicle companies
without any further investment and loss of time. This enables
Sri.Naidu to protect his vested interests in media in Andhra
Pradesh in order to serve his political and financial interests.
aa. Reliance Industrial Investment & Holdings (RIIHL) is a 100
percent subsidiary of Reliance Industries. RIIHL is the vehicle
through which 10.47 crore (6.66 percent) treasury shares of RIL
- 39 -
were held. The RIL Annual Report 2007-08 shows RIIHL as a
100 percent subsidiary. The shareholding pattern of RIL for
December 2008 shows the shareholding of the Petroleum Trust.
The Petroleum Trust through the Trustees for the sole
beneficiary – M/s RIIHL owning 6.66 percent. Since then
Mukesh Ambani has extinguished the treasury stock through a
complicated buy back. RIIHL held the treasury stock through
the Petroleum Trust and Sri. Kampani was the Trustee of the
Petroleum Trust. The scheme of Merger of Reliance Petroleum
Ltd and Reliance Industries Ltd., of 2002 shows the provisions
of the Trust created for five years.
bb. On 9.12.2004, the newspaper Business Standard reported that
Petroleum Trust was not part of the promoter holding in RIL. It
said - “Following the amalgamation of Reliance Petroleum with
RIL, the shares of RIL were allotted to the trust. RIIHL, being a
100 percent subsidiary of RIL could not hold the shares of the
parent company under law. So, the Petroleum Trust was created
to house the newly created shares of RIL after the merger. But
since the property belonged to RIIHL, it was named the ‘sole
beneficiary’, implying that all the financial benefits arising out
of the ownership of RIL shares would flow to RIIHL.”
cc. When the merger was announced in April 2002, it was stated by
then RIL M.D. Anil Ambani that 12.2 percent (7.5 percent then
held by the Trust and 4.7 percent held by RIL associate
companies) would be sold to strategic investors, financial
institutions or overseas via ADRs or GDRs in five years. The
two trustees of the Trust were Nimesh Kampani and
- 40 -
Vishnubhai B Haribhakti. But the BSE continues to show the
Trust holding as part of promoter holding.
dd. A whole host of intermediary companies ensured that the
money trail would be obfuscated, but it cannot be hidden,
because as per Government of India norms, all transactions are
recorded with the Registrar of Companies.
ee. The Form 2 dated 30.1.2008 filed by Ushodaya with the RoC
shows shares allotted to Equator and premium of Rs.5,28,630
per share paid. Ushodaya is the holding company of Sri.Ramoji
Rao. Prior to the deal with Kampani, he owned 99.86 percent of
Ushodaya.
ff. An additional advantage to Sri.Ambani is that he has now
achieved a major foothold in the powerful regional media of
Sri. Ramoji Rao, which is important for the purpose of his
public relations campaign, especially in light of recent media
revelations about the KG Basin.
gg. It is interesting to note that the balance sheets of Ms.Ramoji
Rao’s companies (including Ushodaya Enterprises Pvt. Ltd.)
show continuous losses for nearly 2 decades, which almost
crosses Rs.1200 crores. In addition Land Ceiling litigation has
been initiated against Sri.Ramoji’s companies, concerning 1500
acres of allegedly excess land held by him. As a result, even the
land will have no value to a potential investor. Yet, Reliance
along with Sri.Kampani and Sri.Chajlani chose to pay
stratospheric and unrealistic amounts in order to acquire shares
of these largely sick and dormant entities.
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hh. Also surprising is the fact that as much as Rs.275 crores of
depositors’ money in an escrow account of Sri.Ramoji Rao’s
remain unclaimed. Clearly, all the depositors would have made
claims for the amounts due to them, and be still awaiting the
same. However, in the circumstances, there is no doubt that
almost all this amount belongs to Sri Naidu, which he is
deliberately not seeking to withdraw as this would result in the
income source of his assets being questioned. This conclusion
is supported by the fact that Sri Ramoji Rao filed an affidavit in
court with a list of depositors and the amounts deposited, but
out of that list, it is not made clear as to who have not claimed
the amount. He refuses to divulge those details, despite there
being enough safeguards to protect them. It is obvious that
many of the people on that list are benami. The flow of money
to Margadarsi Financiers from the day one to the day end has to
be investigated. It can be said that many of these deposits are
bribes received by Sri Naidu and had chosen the route that
cannot be verified by the Reserve Bank of India or the
government institutions. It is therefore submitted the entire
deposits to Margadarsi Financiers are to be investigated in the
lines of serious fraud and misuse of power.
ii. It is also important to note that, the private urban co-operative
banks in Andhra Pradesh had faced severe malicious campaign
by Sri. Ramojirao’s Eenadu newspaper and the Govt. of Andhra
Pradesh headed by Sri. Chandrababu Naidu. Sri Naidu’s Govt.
took several steps to weaken the urban co-operative banks in
the name of protecting depositors’ interests, where as the
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original idea is to assure the flow of funds to Margadarsi
financiers, contrary to the urban co-operative banks which is
not a legal entity.
12. The Shamshabad Airport
jj. Between 1997 to 2001, in Palmakole village just adjoining
Shamshabad, Margadarsi Chit fund private limited (a company
in which Sri.Ramoji Rao and his family members were
partners), along with many of Sri.Ramoji Rao’s employees with
as low income as Rs.10,000/- p.m. bought a huge extent of 360
acres of land, when the market value was just Rs.50,000/-. As
agricultural land ceiling was in existence, it was not possible for
a single individual to hold large tracts of this land. Sri.Ramoji
Rao bankrolled the transactions entered into by his employees
in order to facilitate this single piece of land to be transferred.
kk. The fact that this land was purchased at ten times its market
price ought to have been enough to arouse the suspicion of the
authorities. Shortly after the purchase, Sri.Naidu directed the
Government to grant permissions to the benami holders to
convert their land to non-agricultural purposes, thereby
avoiding the application of the ceiling law in regard to
agricultural holdings.
ll. Immediate upon conversion, all the various pieces of land were
sold to Sri.Ramoji Rao at almost the same price1. For example,
there were as many as 10 transactions in the name of Sri.Kolli
Bapineedu Choudhary (now Vice President of Ramoji Film
City), but not a single land stands in his name now. Sri.Naidu’s
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role during the period has to be examined not only because of
his silence during his regime on the huge land banks of
Sri.Ramoji Rao amounting to nearly 2500 acres in the State
capital, but also in facilitating clearances and favours from the
State Government to Ramoji Film City. This is a matter of
conspiracy against public interest and a blatant concentration of
wealth at their cost. It is strange that one of the oldest and
respected of national dailies – the Hindu - has more or less the
same circulation as that of Sri Rao’s Eenadu and is running
with little or no profit margins, Eenadu’s owner’s accumulation
of huge wealth is a matter of concern, as there are no other
sources of revenue, with all his other companies suffering
severe losses for over 2 decades now. This must be thoroughly
investigated to ascertain the benefits heaped on Sri.Ramoji Rao
when Sri.Chandrababu Naidu was the Chief Minister.
mm. Sri. Naidu, as Chief Minister had shortlisted 2 locations
for the new airport, which were Shamshabad and Ibrahim
patnam. Both locations would be of unique benefit to one
person who was Sri Naidu’s close friend Sri Ramoji Rao.
Adjoining Shamshabad, Sri.Ramoji Rao now owned 360 acres
as outlined above, and in Ibrahimpatnam he already held 1800
acres where his Ramoji Film City was located.
nn. In 1998 , Sri.Naidu announced Shamshabad as the location for
the airport. The G.O. formalizing the same followed shortly
thereafter in 2003. With this announcement, the value of the
land in Palmakole became almost Rs.20 lakh/acre, which was 4
times at which Sri. Ramojirao bought. As of now, the land is
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worth about Rs.3 crores per acre. Hence, Rs.18 crores spent by
Sri.Ramoji Rao then has now become Rs.1080 crores, by virtue
of the decision of the Government headed by the Respondent
No.8 to locate the airport at Shamshabad. Wastage of public
money, favouring his own people and treating new and giant
projects as milking cows of political corruption are the three
dimensions in Sri Naidu announcing the Shamshabad Airport.
Sri Ramoji Rao had started banking of land in the State Capital
in the name of constructing Film City. Naidu’s Government
accepting such a huge land banking on the name of Film City,
and subsequently trying to build another airport near to two
huge land banks of Ramoji is showing the biggest land cum
power scandal in the entire history of the nation. One can note
that there is no need of constructing such a huge international
airport with the private participation and allotting 5500 acres of
government land, by shutting down the government owned
airport in the heart of the city.
oo. Not only has a policy decision been dictated by the personal
benefit for an individual, but this has involved a conspiracy to
cheat the State for the profit of Sri.Ramoji Rao and the policy
decisions of the State were manicured to suit the personal
benefits and possessions of Sri Ramoji Rao.
pp. The other dimension of their relation is to be enquired. The
Entire episode of Margadarsi Financiers hasbeen challanged on
the technical grounds, that is whether Ramoji as HUF has any
right to take the deposits from the public. It is also important to
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note that these deposits were never verified before 2006, and
genuineness of these depositors has not been verified. CBCID
of Andhra Pradesh had verified and found that majority of the
depositors are fictitious. It is clearly evident that the quantum
rise in the deposits significantly during 1995 to 2004 in
Margadarsi Financiers when Chandrababu was the chief
minister indicates the fact that the ill-gotten money of Sri
Chandrababu Naidu earned through ingenious ways has been
routed through in the fictitious names to Margadarsi Financiers.
In the absence of any controls, investigations, verifications by
RBI, Union Government and State Government the ill-gotten
money was safely parked with Margadarsi Financiers. This is
precisely the reason why Sri Ramoji has consistently been
refusing to divulge the details of unclaimed depositors in
Margadarsi Financiers. The funds in the escrow account created
in the Union Bank of India is a clear proof of the unholy nexus,
quid pro quos defeating public interests and loot which can be
established by further probe.
13. Hitech City
qq. In 1996, one Sri. Maganti Murali Mohan of Jayabheri
Properties / MM Financiers purchased 2.34 acres in the village
of Gachchibowli. These purchases were made for a total
consideration of Rs.10 lakh. Sri.Murali Mohan is a close friend
and associate of Sri.Naidu, who was then the Chief Minister of
the State. Shortly thereafter, Sri Naidu announced the Hitec
City Project, which was to be coincidentally located in the
villages of Kondapur, Gachchibowli and Madhapur.
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Immediately thereafter, the prices of the lands in those villages
rose dramatically, which was taken advantage by Sri.Murali
Mohan who entered into several Development Agreements (8
projects) between 1996 and 1997 around Hitec City. Sri Naidu
showcaused the internationally reputed IT/Software/ ITES
companies by allotting approximately 1/3rd of 645 Acres in
Sy.No.65 of Madhapur area fuelling escalation in real estate
prices and grabbed the rest of 2/3rd land through a slew of
fictitious / benami paper companies at his behest. The very fact
that most of these companies were Non IT/ software objective
based companies and very few of them just start up Software
companies incorporated with the sole intention of getting the
land and other tax benefits from Government of Andhra
Pradesh lends credence to the fact that Sri Naidu benefited from
the same. In all these allotments, Sri Naidu either received
illegal gratification in the form of cash or end beneficiary
through Sri Maganti Murali Mohan and others. For instance,
companies floated by one Sri.Valluripalli Nagarjun in several
names like Valluripalli Agrotech and Arjun Computers and
Software got the lands from the government agencies for throw
away prices. After getting allotment, some of the said
companies transferred the lands to Murali Mohan and his group
companies.
rr. The Hitech City Project was first announced in 1996 initially
for 600 acres, to be developed in a 3-phased manner. Bids were
invited for the project, and even though the bid of M/s. Larsen
& Toubro Ltd., (L&T) was higher by more than Rs.500 crores,
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the same was accepted by the Government headed by Sri
Naidu. In addition, L&T benefitted from the munificence of the
State by getting as much as 150 acres of the land for itself.
ss. The Project is fashioned as being developed by L&T through its
Special Purpose Vehicle, L&T Hitech City Limited, a joint
venture company of L&T Infocity Limited and Andhra Pradesh
Industrial Infrastructure Corporation Limited. The L&T
Infocity is the first software technology park layout in Hitech
City, which attracted some of the major information
technology companies like Accenture, Microsoft, Oracle, Dell,
Motorola, Deloitte, HSBC, GE and Convergys. What is
important to note is that several plots were sold to infrastructure
companies ostensibly to enable faster delivery to the customer
companies. In this, these middlemen have also profited at the
cost of the people of Andhra Pradesh and severe losses have
been suffered by the State. Some of the instances of such abuse
of state largesse are:
iii. The sale of plots between 1000 sq. yds. to 110 acres
being made to relatives and associates of Sri Naidu.
iv. 7 acres of land were given to Divyasree Soft Tech
Realtors Pvt. Ltd., which, as submitted above, already
had a close personal and political nexus with Sri Naidu.
The very fact that Divyasree dictated the price at which
the purchase would be made suggests certain underhand
dealings with Sri Naidu.
v. Meanwhile the Government of Andhra Pradesh in the
year 2001, through G.O.Ms.No.538 dated October 28,
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2001 announced a plan to add another city to the Twin
cities namely Cyberabad. A Cyberabad Development
Authority was created for this and 51.70 sq.km of land
came under this authority. This authority got the powers
of imposing more betterment charges and strict
guidelines regarding constructions in that area. The
astonishing fact is that the Kondapur area which is in the
center of Cyberabad Development Authority plan is not
included in this plan merely because Sri Naidu, Sri.
Muralimohan and their friends had lands in this area and
they subsequently built huge buildings on the said lands
without paying the charges which are being paid by
remaining areas of CDA. This caused huge losses to the
Government exchequer and the real beneficiary of this is
the then Chief Minister Sri Naidu himself.
tt. Sri.Murali Mohan’s Jayabheri properties and Sri.Naidu’s family
have large properties in Kondapur which are all exempt from
the Government’s betterment charges at the instance of Sri
Naidu. Despite the fact that all other lands around have severe
restrictions, the isolated tracts in Kondapur village occupied by
these entities have been exempted without any rationale. This in
itself shows the misdeeds of Sri Naidu in indulging in
malfeasance, favouritism and embezzlement.
14. Power Producers Scam
The Government of Andhra Pradesh, with a view to
overcoming the power shortages that the State was facing in
1994, on the basis of a report of Sri Hiten Bhayya, a former
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member of the Planning Commission of India, decided to
promote in the private sector several projects, as short
gestation power projects, that were expected to be completed
within 24 months from the date of signing the PPAs. The
global competitive bids were invited when Mr. NTR was the
Chief Minister. In the mean time, on 1st September 1995, Mr
Naidu became the Chief Minister, who entrusted the job of
evaluation of various bids received in the global competitive
bids to ICICI. The ICICI had carried out a detailed
evaluation of the bids and awarded marks seperately for the
(a) background of the promoters, (b) background of the EPC
contractor, (c) location (d) financial closure support
certificates and (e) schedule of implementation. So the entire
evaluation was highly promoter specific and EPC contractor
specific. The State Government signed PPAs with six
developers for implementation of 8 short gestation power
projects on 31-03-1997, with the last of the projects to come
up within 24 months from the date of signing of PPAs i.e. on
or before 01-04-1999. Wheat happened later is that Mr.
Naidu permitted virtual sale of the projects by bargaining
with each of the promoters with whom the PPAs were
signed and has given his consent for change of the promoter,
change of the EPC contractor, change of the fuel and change
of the due date for implementation several times. None of
the projects were implemented even after the five years from
the first due date. None of the original promoters of any
these projects continued to be the actually implemented
projects, thus making the entire process of the global
competitive bids a big mockery only with a clear design to
personally benefit financially by allowing concessions and
changes to PPAs to the disadvantage of the State
Government. The opposition Parties raised this issue several
times both inside and outside the Assembly without any
avail. Same is the case with the two gas based projects viz
GVK and Spectrum, which were allowed huge increases in
capital outlays to the utter disadvantage to APSEB and much
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against the then prevailing industry norms. The State
Government itself implemented in October 1997 a 174 MW
combined cycle gas base power project at Vijjeswaram for
Rs.474 Crores i.e.at Rs.2.72 Crores per MW. What is
shocking is that Mr. Naidu, by collecting huge monies,
allowed a capital cost of Rs 875 Crores to Spectrum Project
@ Rs 4.20 per MW and Rs.925 Crores for GVKs 216 MW
project @ Rs4.28 per MW. Both these projects have come
up around the same time as that of the Vijjeswaram Project.
This was a huge loss to State Government. Despite the entire
Opposition raising hue and cry the capital cost increases to
these projects could not be stopped because of the personal
interest of Mr Naidu. If it was a genuine mistake, Mr Naidu
would have easily corrected this blatant hike. He did not do
so because of the money he allegedly got from the
promoters. In fact, based on a complaint from
APTRANSCO, the CBCID is probing the hike in the capital
cost of SPECTRUM.
uu. The whole issue therefore has to be entrusted to CBI for a
thorough probe.
vv. As part of allowing the change of promoters for short gestation
projects, Mr Nadu, clearly with a view to doing favour to his
colleague in TDP and a major fund raiser for that party allowed
change of promoter of Konaseema Oakvell Project in favour of
Sri M V V S Murthy, a TDP MP from Visakhapatnam. The
Government of Andhra Pradesh originally had agreement with
Singapore based OAKWEL group as a barge mounted project
using furnace oil as fuel. With a view to benefitting Mr Murthy,
Mr Naidu not only allowed change of status from barge
mounted to land based project but also unilaterally allowed
change of promoter from OAKWEL to Mr Murthy and also the
change of fuel and schedule of implementation by more than
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three years for a project that was already delayed by five years.
Later they formed a new entity named Konaseema gas power
limited. It is argued in the Legislative Assembly by the then
opposition congress party that the whole episode is illegal and
against the norms laid by Govt. One Sri M.V.Mysoora Reddy
who was an MLA of Congerss Party now turned as Telugu
Desam Party’s MP openly alleged that ‘Big Boss’ got all the
money in Konaseema power issue. Every one concerned with
this issue knows that the said Big Boss is none other than Sri.
Chandrababu Naidu, the then Chief Minister of the State. This
Konaseema gas power limited is owned by Sri Naidu’s close
aide Sri. M.V.V.S.Murthy, who was also a MP of TDP.
Interestingly a prime area of 80 acres of land next to the sea in
Visakhapatnam was allotted to Sri M.V.V.S.Murthy’s
GITHAM University by then Chief Minister Sri Naidu at a
throwaway price of Rs.18,000/- per acre.
ww. Towards these favours done by him, many of the owners
of the power projects have made payments to Sri Naidu in cash,
which have been either routed to land purchases which are all
traceable to Sri Naidu or to Sujana Group Companies held in
Mauritius, Cayman Islands and Dubai through which the
laundering of the same takes place.
15. NTR Memorial Trust
xx. On 15.2.1997, the NTR Memorial Trust was founded, with the
Chief Minister Sri Naidu as both the Settlor and the Trustee,
and Sri Seetharamaiah (his auditor) and Sri D.Srinivasa Rao
(Member, TDP) as the other Trustees. Ostensibly the object of
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the Trust was charitable in nature. It is to be understood in no
uncertain terms that although NTR Trust is registered as a
Public Charitable Trust, Mr Naidu has absolute strangle hold on
the organization. The Trust holds highly valuable real estate and
other projects, all of which can become the private empire of
Mr Naidu as the present Members of the so called Public
Charitable Trust are Mr Naidu, his wife and his auditor, who
has no personal stake.
yy. Within a few months, this Trust applied to the Government for
allotment of land, which was granted by Sri Naidu with
alacrity. As a result, a piece of land in the prime area of Banjara
Hills admeasuring 4000 sq. yds. was granted to the Trust on a
30-year lease on a nominal lease/rent. The G.O. issued in this
regard made it clear as a condition of the lease that the land
would not be used for political activities or commercial
purposes.
zz. However, within a few weeks, the Trust applied once again to
the Government to grant a relaxation to permit it to rent the
land for the purpose of political activity. Unsurprisingly, the
Government obliged and the G.O was duly amended permitting
for political use occasionally. But is has been used continuously
for the political purposes and the basic concept of Charity and
other motives of the trust are totally defeated.
aaa. It is submitted that Sri Naidu was declared a lifetime
trustee in his personal capacity, and the Trust cannot in any way
be inherited by his political party, the TDP.
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bbb. Over the next 2 years, a massive building was
constructed at the site and that too by the very L&T who were
beneficiaries of Sri Naidu’s generosity in granting them the
contract for Hitech City. That such favours were illegal is borne
out by the fact that the entire construction was done free of cost.
It may be noted that while the income of the Trust was only
Rs.8 lakh, the value of the construction ran into several crores.
ccc. In 1999, after the construction of the building was
completed, it became the official headquarters of Sri Naidu’s
Telugu Desam Party and promptly started being used for
political purposes. The TDP has also been paying rent to the
Trust for this purpose.
ddd. It is submitted that with the Trust and the TDP
headquarters in the same location, large infusions of foreign
funds are being made via the Trust, and then being utilized for
the purposes of the party and Sri Naidu, without being
accounted for or shown in the books of accounts. This amounts
to a violation of both the Foreign Exchange Management Act
and the Prevention of Money Laundering Act.
eee. Nearly Rs.2-5 crores is donated to the Trust annually, and
this commenced from 2000 onwards. Notable donations in
India include Rs.1 crore by the Satyam Group and Rs. 20 lakhs
each by Madhucon Sugars and the Hayagreeva Estates Pvt.
Ltd., all of whom have been the beneficiaries of Sri Naidu’s
decisions while in power. A parallel may be drawn with the
CBI investigation in the 2G scam into ‘Chennai Sangamam’, a
so-called charitable trust of which Ms.Kanimozhi was a Trustee
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and who received substantial donations from companies who
were beneficiaries of allotment of spectrum. In the same vein,
Sri Naidu also ought to be investigated.
fff. In addition, the Trust is in violation of its own Deed by carrying
on non-charitable activity carried on at trust land by having a
party office there. Clearly, the substantial/ major purpose of the
activity carried on there is political. Hence, the very purpose of
the trust is defeated, and must be considered by the Government
to terminate the lease.
16. Kakinada Port
a. With a pre-determined mind to award the Kakinada Sea Port
deep water project to a consortium comprising the son of the
former Prime Minister of Malaysia and son of the former TDP
Minister of Commercial Taxes, Smt J Padmavathi who was
allegedly acting as a benami of Sri Chandrababu Naidu, Mr. Naidu
in a brazen way, manipulating the advice tendered by RITES, the
independent agency entrusted with the responsibility to evaluate
the global competitive bids received in response an advertisement
of the AP Government for privatization of Kakinada deep water
Port, has managed to hand over the said project to the said
consortium. Smt. Padamvathi is incidentally is the daughter of
elder brother of Sri Bolla Bulli Ramaiah, a TDP functionary and a
former Union Minister for Commerce. The Government of Andhra
Pradesh has indeed called for a global competitive bid to privatize
Kakinada Sea Port and entrusted the job of evaluation of various
bids to RITES, a Government of India Organization. The RITES,
after carrying out detailed analysis of the bids, has assigned marks
to each of the applicants and forwarded the same to the
Government of Andhra Pradesh. Mr. Naidu, the then Chief
Minister, on finding out that the in the evaluation report of the
RITES, the consortium he wanted to favour did not figure,
completely altered the recommendation made by the RITEs and
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awarded the project to the consortium that he was interested
namely to the consortium led by the then Malaysian Prime
Minister. The terms and conditions of the award of the contractor
was, on several occasions, amended to the benefit of the private
developers, entailing huge loss to the State Exchequer. This project
has since become highly profitable. Just off the coast of Andhra
Pradesh at Kakinada, the presence of a small island called Hope
Island provides a natural harbor. There are 2 ports here, an
Anchorage port and a Deep water port, of which the decision was
taken by Sri.Naidu that the latter must be privatized in order to
expand and develop 15 more berths for the ships.
b. The Government had constructed 3 berths with in a span of 3
years i.e. from 1996 to 1999, and there was an increase
exponentially every year for the cargo taken. As per the
statistics available for the year 1998-99, thirteen lakh tonnes
were moved at this port.
c. In 1999, pursuant to the decision taken by Sri.Naidu, the port
handed over to International seaports consortium led by
Malaysian Prime Ministers son Mirzan bin Mahatir on
Devolop-operate-Transfer (DOT) basis. They have given 18
months time period to develop another 2 berths. But the
consortium failed to fulfil it's commitment and the construction
work of another berth started only 5 years later in 2004,
thereby belying Sri.Naidu’s claim that present load exigencies
required the project to be set up immediately. In addition, as per
the contract, the consortium needs to pay Minimum guaranty
amount (MGA) every year but it didn't do so even though
started making revenue from Day 1 itself, which was found
fault with by the CAG, with losses to the State exchequer
calculated at Rs.53 crores for the period from 1999-2007.
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d. In fact, to make matter worse, when the contract was re-
negotiated with Sri.Naidu’s government in 2003, the
amendments carried out were to the benefit of the consortium
so that instead of paying Minimum Guarantee Amounts
(MGA), they agreed to pay a share of the profits, which would
of course await their completion of the project and its
commencement.
e. Significantly, partners of the consortium created sham
Mauritius companies like PSA Bulk terminal limited, SSA Asia
holdings limited which were allotted shares in Kakinada
Seaports Ltd and subsequently, those shares transferred to L
and T. So, it is evident that Sri.Naidu who violated all the
norms for this consortium largely benefited from these
companies. Interestingly, Everlink Asia Investment (a
mysterious company which made misrepresentations to the
RoC, ICRA and Ministry of finance (PPP toolkit) regarding its
location and registration) had a substantial stake holding, which
was later claimed to be transferred to L&T. Here a purported
beneficiary of the entire transaction is amply clear and it is none
other than Sri. Naidu. It may be noted that L&T was a major
beneficiary of Sri.Naidu’s largesse in the State, as is evident
from Hitec City and the construction of the NTR Trust Bhavan
free of cost.
f. Shares were also found to be allotted to Sri.Bolla Bulli
Ramaiah’s South India Infrastructure development Company.
Sri.Ramaiah was a TDP MP from Eluru constituency between
1999 and 2004, which was the critical time when the port
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transactions were made. Notably, he was also a founder
member of Sri.Naidu’s Heritage Foods India Ltd.
g. The role of Sri.Karnati Venkateswara Rao who is presently
CEO of Kakinada port is to be investigated as he is holding
Chandrababu’s interests in fiduciary capacity in the name of
various companies incorporated in Singapore, Malaysia and
Mauritius mentioned supra.
h. Infact, instead of expanding Kakinada port, The consortium
expanded to SEZ operations with Kakinada SEZ limited. Sri.
Karnati Venkateswara Rao is holding the entire shares in this
company through Kakinada investments and holding limited
(KIHL).
17. Privatization Policies under Sri Naidu
a. The Public Sector Undertakings (PSUs) in Andhra Pradesh
have received a major jolt with the policies of the State
Government under Sri Naidu. Sri Naidu with the help of
Implementation Secretariat had undertaken a so-called Public
Enterprise Reform Programme with three major objectives
namely – a) to foster sustainable economic and social
development and a competitive market economy that
encourages investment, employment and trade, b) to withdraw
Govt. from commercial activities and reduce and eventually
eliminate Govt. financial support to commercial enterprises and
c) to increase ownership, management and control of economic
activities by the private sector. Since 1999 the state government
had identified 87 State Level Public Enterprises (SLPE) for
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initiate the reforms. Out of these 87 SLPEs, the state
government has changed the fortune of 54 state level
enterprises by closing 22, restructuring 12, privatizing 11 and
disinvesting 9 between 1999 to March 2004. This was the most
in the country for any State.
b. Sri Naidu’s one sided approach was criticized by Opposition
and industry experts. According to the reports of CPI (M), the
State Government has lost huge amounts by doing favours to
certain industries by liquidating the assets for nominal rates.
The Government had ignored the reports of District Collectors
and higher officials of firms and liquidated the state level
enterprises and cooperatives for a sum of mere Rs.209 crore
where the market value of those firms was accounted for
Rs.636 crore. There was also clear suspicion that most of the
lands and enterprises were handed over to the ruling party
members and their associates.
STATE LEVEL PUBLIC ENTERPRISES IN ANDHRA PRADESH - REFORMS (Rs. in Crores)
SR.NO PUBLIC ENTERPRISES DATES VALUE OF
IMMOVABLE ASSETS
TAKE OVER PRICE
HANDED OVER TO
ENTERPRISES PRIVATISED / DISINVESTED
1 Sri Hanuman Co-operative Sugar Mill 31-Dec-02 7.10 11.40 Delta Paper Mills Limited
2 ASM Co-operative Sugar Mill 25-Feb-03 2.44 3.30 Delta Sugars Limited
3 Adilabad Co-operative Spinning Mill 23-Oct-02 2.11 4.75 Sree Astalaxmi Spinning Mills
Pvt. Ltd
4 Rajahmundry Co-operative Spinning Mill 10-May-01 3.52 Krishna Enterprises (Tadi
Tata Rao)
5 Nizam Sugars Limited
a) Chagallu Distillery 11-Jul-01 3.95 9.00 Jeypore Sugar Company
b) Shakarnagar sugar Mill 03-Apr-02 Goldstone Exports (Gelcon) Joint Venture - 51% for Delta
and 49% for NSL/AP Govt. Delta Paper Mills Limited
c) Shakarnagar Distillery 03-Apr-02 Goldstone Exports (Gelcon) Joint Venture - 51% for Delta
and 49% for NSL/AP Govt. Delta Paper Mills Limited
d) Mombojipalli Sugar Mill 03-Apr-02 Goldstone Exports (Gelcon) Joint Venture - 51% for Delta
and 49% for NSL/AP Govt. Delta Paper Mills Limited
e) Metpalli Sugar Mill 03-Apr-02 Goldstone Exports (Gelcon) Joint Venture - 51% for Delta
and 49% for NSL/AP Govt. Delta Paper Mills Limited
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f) Latchayapet Sugar Mill 10-Jan-03 9.49 NCS Estates Pvt. Ltd.
g) Madhunagar Sugar Mill 16-Aug-03 9.40 18.10 Trident Sugars Limited
h) Mombojipalli Distillery 07-Oct-02 7.00 Continental Coffee Ltd
6 Nandyal Co-operative Spinning Mill 15-Sep-03 3.52 6.01 Sree Rayalaseema Sugar &
Energy Limited
7 Nagarjuna Co-operative Sugar Mill 23-Oct-02 2.65 5.25 Nuziveedu Seeds Limited
8 Parchur Co-operative Spinning Mill 04-Feb-03 2.47 4.59 Jayavenkataramana
Industries
9 Palair Co-operative Sugar Factory 17-Dec-03 5.75 9.58 Madhucon Sugars Limited
10 West Godavari Co-operative Sugar Mill 15-Oct-03 36.00 Andhra Sugars
11 NVR Co-operative Sugar Mill, Jampani 29-Dec-02 14.50 Jeypore Sugar Company
(Smt. Rajeswary Ramakrishnan)
12 Voltas Limited 10-Jun-03 8.78 5.31 TATA Sons Limited
13 Rural Electricity Supply Co-operative, Anakapalli 08-May-03 DISINVESTED
14 Rural Electricity Supply Co-operative, Chipurapalli 08-May-03 DISINVESTED
15 Godavari Fertilisers and Chemicals Limited 07-Jun-03 DISINVESTED
16 Vazir Sultan Tobacco (VST) 23-Mar-03 DISINVESTED
17 Tata Motors (TELCO) 23-Mar-03 DISINVESTED
18 Associated Cement Companies (ACC) 23-Mar-03 DISINVESTED
19 Sirpur Paper Mills 23-Mar-03 DISINVESTED
20 Andhra Pradesh Paper Mill 23-Mar-03 DISINVESTED
STATE LEVEL PUBLIC ENTERPRISES IN ANDHRA PRADESH - REFORMS (Rs. in Crores)
SR.NO PUBLIC ENTERPRISES DATES VALUE OF
IMMOVABLE ASSETS
TAKE OVER PRICE
HANDED OVER
TO
ENTERPRISES CLOSED
1 AP Small Scale Industries Development Corporation Phase I
(1999-2002) CLOSED
2 AP Textile Development Corporation Phase I
(1999-2002) CLOSED
3 Allwyn Watches Limited 18-Oct-99 CLOSED
4 Nellore Co-operative Spinning Mill 26-Jun-01 CLOSED
5 Chirala Co-operative Spinning Mill 2000 December CLOSED
6 Chilakaluripeta Co-operative Spinning Mill Phase I
(1999-2002) CLOSED
7 Andhra Pradesh Non-Resident Indian Investment Corporation (ANRICH)
Phase II (2002-2004)
CLOSED
8 Andhra Pradesh Federation of Consumer Co-operative Societies (FEDCON)
16-Nov-01 CLOSED
9 AP Fisher Development Corporation Phase II
(2002-2004) CLOSED
10 AP Electronics Development Corporation Phase II
(2002-2004) CLOSED
11 Sri Krishnadevaraya Oil Seeds Growers Union Phase II
(2002-2004) CLOSED
12 Sri Vijayavardhani Oil Seeds Growers Union Phase II
(2002-2004) CLOSED
13 AP State Federation of Cooperative Spinning Mills Limited (SPINFED)
Phase II (2002-2004)
CLOSED
14 Karimnagar Co-operative Spinning Mills 01-Nov-91 CLOSED
15 AP SUGARFED Phase II
(2002-2004) CLOSED
16 Chittoor District Co-operative Milk Producers Union 31-Aug-02 CLOSED
17 Sri Rajarajeswara Co-operative Spinning Mills 1999 CLOSED
18 Rural Electricity Supply Co-operative, Atmakur 01-Jul-03
Rs. 65 crore liabilities in total
for all the five RESCOs
CLOSED
19 Rural Electricity Supply Co-operative, Rayachoti 01-Jul-03 CLOSED
20 Rural Electricity Supply Co-operative, Kadiri East 01-Jul-03 CLOSED
21 Rural Electricity Supply Co-operative, Kadiri West 01-Jul-03 CLOSED
22 Rrural Electricity Supply Co-operative, Jogipet. 01-Jul-03 CLOSED
ENTERPRISES RESTRUCTURED
1 AP State Irrigation Development Corporation
2 AP State Meat Development Corporation
3 AP State Agro Industries Development Corporation
4 AP Handicrafts Development Corporation
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5 AP Seeds Development Corporation
6 Girijan Co-operative Corporation
7 AP Technology Services
8 AP Film Theatre and Television Development Corporaton
9 AP State Warehousing Corporation
10 AP SERIFED
11 APCO
12 NEDCAP
c. The decision-making process of the then policy leading to
disinvestment and privatization of State owned entities
conducted with the Respondent No. 8 at the helm, and decisions
were taken by fine-tuning the valuation of the enterprises got
done by valuers who had no track-record in assessing the
potential of the state-owned enterprises. M/s. Vignewswara
Technical and Management Consultants Private Limited,
Hyderabad an obscure entity in the field, was entrusted the job
of valuation of the above Firms while discarding the credible
agencies like CRISIL. The valuation in respect of Palair Sugars
and Nizam Sugars was got done perfunctorily without any real
time assessment of the potential of the enterprise to get back to
profiting ways. In regard to Palair Sugars, the same was
privatized and sold out to M/s. Madhucon Sugars, which was a
company registered a month prior to the agreement of takeover.
M/s. Madhucon Sugars, which has had no past track record of
prudent management of enterprises, was the purchaser of Palair
Sugars, owned by and promoted by Sri Nama Nageswara Rao,
presently Member of Parliament, TDP. Sri Nama Nageswara
Rao owes allegiance to the Respondent No. 8 politically and
personally and has been a close associate of Sri Naidu. Thus,
the valuation of a State-owned enterprise, was deliberately
diminuted without exploring the prospects of reviving the said
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enterprise, and sold for a farthing to M/s. Madhucon. A state
owned enterprise, built by public funds and State contributions,
was allowed to be dissipated and designed to be handed over
for exploitation by private entities, for a price which caused
considerable loss to the State, its citizens and the public
exchequer.
d. The Government of Andhra Pradesh had appointed a committee
to enquire into the allegations on privatization of the above said
state public sector undertakings and the committee inter alia,
made the following recommendations regarding Nizam Sugars
privatization.:
i. To cancel joint venture which was fraudulently
approved by a single member cabinet sub-
committee and order probe against CSC members
especially Yanamala Ramakrishnudu, the then
finance minister in Sri Naidu’s Government.
ii. Recommended to enquire with regard to three CSC
members i.e. Ministers for finance, sugar and
major industries for violating all rules and norms
under the Swiss challenge method.
iii. The detailed recommendations made by the above
committee are enclosed.
18. Chittoor Dairy
a. The Chittoor Dairy was a cooperative under the State, which
was destroyed by Sri.Chandrababu Naidu for the benefit of his own
dairy named M/s. Heritage Foods India Limited. How he misused his
power is depicted in several studies. The National Institute of Rural
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Development has published a case study about this, the excerpts of
which are as follows:
“The Chittoor Dairy, which was established in 1969
with 6000 litres. per day, reached to the capacity of
2.5 lakh litres per day in 1989-1990. The huge
surplus milk was converted in to milk powder and the
dairy could not sell the milk powder due to slump in
the prices in the country. The dairy could not pay the
farmers milk bills and the dairy went into loss making
unit and finally was closed down on 31-08-02. Due to
liberalization policy for privatization, number of
private milk dairies started procuring milk from the
villages. Their number in the district increased from
16 to 37 from the year 1999-2000 to 2004-05. Due to
continuous drought years owing to crop failures,
more farmers started keeping cows for their
livelihoods and started selling milk to Private Dairies.
The Private Dairies joined together and formed a
syndicate to exploit the milk producers by paying Rs.
5 to 7 per litre from 2000 to 2005. In absence of
competition from public sector/ district milk co-
operative unions, private dairies exploited the farmers
without enhancing the milk price till 2005”.
b. A book titled ‘Dilemmas In Agriculture - A Personal Story’
published by Vasudaiva Kutumbakam narrates the murder of
milk co-operatives by Sri Naidu as Chief Minister, excerpts are
as follows:
“Elections to the cooperatives right from the village to
the district level were a big political affair and even the
secretary of the cooperative at the village used to make a
lot of money, taking a little extra milk officially for
testing and asking people to pour over the brim of the
liter measured, etc. The milk for testing would never be
tested. The society dairy was soon reeking of corruption
and they were unable to pay bills to farmers for milk
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supplied to them for over a year. After much agitation,
the bills were paid, but the cycle repeated. At this
juncture the Government allowed private dairies to
operate, with our Chief Minister Chandrababu Naidu (in
opposition then) taking a lead by starting a big dairy
(Heritage Foods). The private dairies have formed a
cartel and they do not raise the price of milk, despite
there being several buyers (so much for the multi buyer
model of the World Bank).”
II. One of the major policy decisions taken by the then Chief Minister
Chandrababu Naidu within a few days after he took over the office
helped his own firm, Heritage Foods Limited by the way of
deferment of sales tax payments. According to the Tax Deferment
Scheme of New Industrial Policy 1995, a certain percentage of
payment of sales tax is postponed depending on the expenditure
incurred for installation of machinery by the industries. The New
Industrial Policy 1995 authorized the Government of Andhra
Pradesh to decide the percentage of sales tax amount and the
period for which the payment of the same could be postponed, as
an incentive.
III. Sri.Chandrababu Naidu issued all the necessary orders in favour of
Heritage Foods Limited to make use of the benefits under Tax
Deferment Scheme. Within three weeks after he became Chief
Minister, all the relevant permissions were given to postpone the
payment of sales tax for a period of 14 years and Narkatpalli
facility of Heritage Foods was given tax incentives on 21.11.1995.
Heritage Foods has gained a total of Rs.15,23,46,180 by the way of
subsidies and sales tax concessions from the Government of
Andhra Pradesh during 1996 to 2002. It also indicates that
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Heritage didn’t wait for the maximum period of 14 years to collect
the tax incentive amount for the total of Rs.15 crore. To achieve
this target Heritage Foods have followed a clever method to
immediately increase the percentage of sales tax on milk from 6 %
to 10% and then roll it back to the normal after collecting the total
allowed amount on the basis of sales tax incentive. Heritage Foods
Limited has earned at least a minimum of Rs.100 crore during the
last 14 years under Tax Deferment Scheme of New Industrial
Policy 1995.
IV. As per the provisions of the New Industrial Policy 1995, Heritage
Foods Limited is allowed to keep a sum of Rs.15 crore collected
on behalf of the sales tax for a period of 28 years from 1996 to
2024. Within this period of 28 years, Heritage Foods Limited will
be saving at least a minimum of Rs.300 crore in terms of basic rate
of interest given for the deposits by the National Banks.
V. Heritage Foods Limited has opted for the initial public issue (IPO)
on 17th November 1994 and the promoter’s share capital was
Rs.4.3 crore when compared to the Rs.6.5 crore of public share
capital.
DETAILS OF FINANCIAL ASSISTANCE FROM GOVERNMENT NAME OF THE
UNIT PERMISSION
DATE SALES TAX
CONCESSION SUBSIDY
Chandragiri, Chittoor
19.06.1997 11,32,13,650 20,00,000
Bayyavaram, Vizag 12.11.1996 2,08,23,030 20,00,000 Narketpalli, Nalgonda
13.1.1996 1,07,77,500 15,00,000
Putturipalem, Ongole
24.1.2001 N/A 10,32,000
Madhira, Khammam 6.4.2002 N/A 10,00,000 TOTAL 14,48,14,180 75,32,000
h. It is clear from all the above that Sri Naidu has abused his
office yet again to provide his own company with severe
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monetary advantages, while at the same time totally causing the
demise of the State co-operative. This is blatant instance of
fraud, cheating and corruption that must be brought to book.
i. It is evidently clear that the Heritage Public Issue was never
subscribed/contributed by the public but Sri Naidu siphoned off
his bribe monies, put them in finance companies and then,
through his agents put back those amounts as public
contribution in response to the public issue. In reality, the entire
amount of share money through public issue is Sri Naidu’s own
ill-gotten money and reinvested back in the name of the
Company, which is nothing but the parking place of Sri Naidu.
19. Money laundering and Foreign assets of Sri Chandrababu Naidu
a. Despite the partnership summits which were organized in
Hyderabad during Sri.Naidu’s regime, and his official trips to
Europe and USA, no substantial FDI was received by the state
of Andhra Pradesh from the West. Interestingly, almost all the
contracts like Kakinada Sea Ports, Raintree park situated at
Hyderabad, GMR International Airport, Ascendas IT park, AP
Gems and Jewellery Park, and Emaar township were awarded
to international companies of Malaysia, Singapore or UAE.
b. The then Prime Minister of Malaysia Sri. Mahathir Mohammed
had stepped down after facing severe corruption charges in his
country. Sri.Naidu’s personal friendship with Mahathir is not a
secret to the observers of international relations. Sri Mirzan Bin
Mahathir, the elder son of Mahathir Mohammed was the
Chairman of the International Seaports Consortium and even
has a majority stake in the said company which got the
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Kakinada sea port contract under Public-private partnership
basis. It is also equally important to note that the national press
in India and investigative journals like Tehelka had revealed Sri
Naidu has investments in the hospitality industry in Malaysia
and Singapore. One can understand the nature of bribes in such
a case which were not taken here, but were received and
invested in the same country. An ordinary citizen of India
cannot investigate the facts of the matter and it is the
Enforcement Directorate under the aegis of the Union
Government that can only examine this by issuing Letters of
Request under the PMLA Act.
c. In addition, as far as the AP Gems & Jewellery Park is
concerned, Sri Naidu via APSTC gave 2.6 acres in 2002 in
Banjara Hills to Chukkapalli Suresh (MD of AP Gems and the
brother of a TDP candidate). A company named IOI India
headed by C.Suresh gets financial funding from its holding
company IOI Mauritius. Sri Naidu is the owner and beneficiary
of IOI Mauritius, which is using its subsidiary in India to
launder illegal moneys.
d. In the year 2002, the newsmagazine Tehelka reported about
Sri.Chandrababu Naidu’s disproportionate assets by naming
him as the richest politician in India. They have further reported
his indirect holdings in the Hotel industry and with having
shopping complexes in Singapore and Malaysia respectively.
Further enquiries in this regard revealed that the land on which
the hotel building is located in 1, Unity Street, Singapore,
237983 is owned by M/s Parksing property pte. limited. The
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hotel is managed / administered by the famous Park Group on
payment on royalty basis. It is interesting to note that 100
percent equity in Parksing property pte. limited is held by a
company incorporated in British Virgin Islands namely Eagle
Force Profits Limited, P.O.Box 957, Road Town, Tortola,
British Virgin Islands. This BVI Company in turn is owned by
a private discretionary trust in which family Members and
relations of Sri Chandrababu Naidu are the beneficiaries. This is
yet another aspect that requires examination.
20. Yeleru Land Scam
i. Is 15 years now eversince the infamous Yeleru Scam was unearthed in
our state. In the name of paying enhanced compensation to farmers
who lost their lands for the construction of Yeleru canal, politicians
and top bureaucrats ate crores of rupees. Though the perpetrators of
the fraud planned and executed their design with a combination of
bureaucratic and political power, none of the representatives of these
two domains were punished so far. If the scam was unearthed and a
further plunder of Rs 400 crore was stopped, it was mainly because of
the joint effort made by a vibrant judiciary and a dynamic media. Both
the bureaucracy and the political class looked with contempt at this
joint effort launched by the third and fourth estates of our constitution.
A larger investigation into this episode is essential mainly because of
the following grounds.
ii. The prime accused Peela Pothinaidu opened a joint account and made
fixed deposit for Rs 2 crore in 1996 at Vella branch of Vysya Bank in
East Godavari district immediately after the state government headed
by the then chief minister N Chandrababu Naidu released an amount
of Rs 6.5 crore in the name of `compensation' to the farmers. Though
this FD was supposed to contain two names, it carries the name of
Pothinaidu as the second beneficiary while leaving blank the space
meant to fill the name of the first beneficiary. This name is believed
to be that of the then chief minister himself. Hence a CBI probe is
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essential to find out the truth in it because the CID which was
entrusted to look into the matter had failed to do so in the last 15
years. It could not even pinpoint the role of senior IAS officers who
unlawfully processed the files and facilitated the release of funds in
Yeleru scam. The authorities were willing to release exhorbitant
compensations rather than filing appeals against them in the higher
courts. This was part of the modus operandi of a clever design that
kept the judiciary in the forefront of the scam. A sub judge was
suspended, jailed and dismissed and not a single politician that
masterminded the fraud was booked in the scam so far. This was
despite a letter reaching the Chief Minister forewarning him about the
ongoing Yeleru fraud and the involvement of Ministers and Chief
Minister himself. Even after this letter was officially received by the
CM's office, further troches of money was released.
iii. The appointment of Justice B. K. Somasekhara Commission of
Inquiry to probe into Yeleru scam was quashed twice by the AP High
Court on pure technicalities and never on merits and hence there is no
legal impediment for the court to order a CBI probe into the matter. In
fact Supreme Court found fault with the AP High Court for looking at
technical aspects alone and not merits at public interest and loss to the
exchequer.
iv. Yeleru scam is a combination of four scams. Yeleru, Pisinikada,
Yalamanchili and vizag steel plant land acquisitions were targeted and
even the orders of the Supreme Court were misinterpreted in
Pisinikada case and the whole issue was sought to be shown as more a
judicial scam rather than a political scam. It is all the more the reason
why the judiciary to order a CBI probe into it to bring out the real
truth in it.
21. Rithwik Projects Ltd.,
a. Mr.C.M. Ramesh is a senior TDP functionary and a close aide of
Sri Chandra Babu Naidu. Sri Ramesh is the Chairman of Rithwik
Projects Limited, a Contracting company. Rithwik Projects Private
Limited is another company which holds Sri Chandra Babu
Naidu’s ill-gotten money. This is the reason for the elevation of
Mr.C.M.Ramesh as the top functionary in the TDP.
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b. From a small turnover of Rs.61 Crores in 2003, Rithwik Projects
returned a turnover of Rs.488 crores by 2009 as a Sub-Contractor
which speaks about the inexplicable and phenomenal growth of the
company. There was regular infusion of capital into the company
annually, which is surprising, especially when even a Singapore
based Private Equity Firm - Baring Private Equity Asia IV
Mauritius invested in this small contract firm from Andhra
Pradesh. The list of Shareholders is enclosed herewith.
c. The infusion of Share Capital into Rithwik Projects Limited is
illustrated below:
YEAR SHARE CAPITAL
RS IN CRORES
SHARE PREMIUM RS IN CRORES
SHARE APPLICATION MONEY RS IN CRORES
TOTAL RS IN CRORES
2003-2004
1.80
3.60 0.62 6.02
2004-2005
4.29 4.29
2005-2006
2006-2007
2007-2008
3.72
116.27 8.50 128.49
2008-2009
TOTAL
5.52
119.87 13.41 138.80
a. Funds moved through the operations of Rithwik Projects
Private Ltd. and indicative expenditure heads of cash nature are
depicted below:
Year Share Capital Rs in cr
Collections From Debtors Rs in cr
Others Rs. in cr
Total Rs in cr
Payment To Creditors
Fixed Assets Rs in cr
Others Total
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Rs in cr
2003-04 6.02 99.43 9.45 114.90 5.42 17.98 91.50 114.90 2004-05 4.29 111.14 29.23 144.66 5.14 37.94 101.58 144.66 2005-06 173.20 41.21 214.41 16.67 28.84 168.90 214.41 2006-07 219.75 27.95 247.70 12.35 14.25 221.10 247.70 2007-08 128.49 312.33 47.66 488.48 21.29 27.87 439.32 488.48 2008-09 437.02 242.56 679.58 93.55 33.68 552.35 679.58 2009-10 138.80 1352.87 398.06 1889.73 154.42 160.56 1574.75 1889.73
b. Foreign currency transactions were carried out in a Sub-
Contracting company which need a thorough verification as
foreign exchange outflow has been shown as below:
YEAR Rs in Cr 2004-05 3.89 2005-06 3.13 2006-07 9.34 2007-08 5.86 2008-09 6.31
c. By the year 2009 when the Elections for the AP State Assembly
were conducted, enormous amounts of cash balances were
accumulated and a lot of cash expenses were booked running into
Crores of Rupees. In view of this, the Hon’ble Court may direct the
investigation of the affairs of Rithwik Projects Private Limited to
unearth the ill-gotten money of Sri Chandra Babu Naidu.
22. The IMG MoU and the Rao Brothers
a. The Government of A.P. headed by Mr.Chandrababu Naidu as
the Chief Minister of the State entered into a MoU on 9.8.2003
with IMG, a company registered under the Companies Act,
1956 incorporated by Mr.Ahobala Rao and Mr.Prabhakara
Rao for transfer of 855 Acres of land and to develop Stadia in
Hyderabad and Ranga Reddy District. Of this, 400 Acres of
land was at the University of Hyderabad, to develop, own and
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operate sports academies and do all lawful business, and
another 450 Acres of land in Sy.No. 99/1 at Mamidipalli was
for extensions of facilities and activities relevant to its sporting
academies. A further 1(one) to 5 (five) acres of land on the
main road of Banjara Hills was offered to establish its head
office and to do all lawful business. The terms of this MoU
clearly indicate that the invaluable public property and lands
were provided to be alienated without there being any control of
the Government in regard thereto. The said company was
registered under the Companies Act, 1956 on 5.8.2003 with a
paid up share capital of Rs.1.00 (ONE) Lakh. Of this, 999
shares of Rs 100/- denomination were held by Mr.Ahobala Rao
and one share by his brother Mr.Prabhakar Rao.
b. It is interesting to note that these very 2 brothers were earlier
engaged by Mr.Naidu in the Kuppam Project in his own
Assembly constituency of Chittor. Mr.Ahobala Rao is a close
associate and confidante of Mr.Naidu since 1994 according to
the print and electronic media. He acted hand in glove with
Mr.Naidu, and since the entrustment of the Kuppam Project to
the Rao brothers, they became very close to Mr.Naidu. IMG
did not even have a proposed office or address to function at the
time of incorporation. In the Memorandum of Association
submitted to the Registrar of companies, the registered office
address was shown as the “State of Andhra Pradesh”.
According to the MoU the 400 Acres of the lands agreed to be
transferred to IMG were part of the University of Hyderabad
Campus which is serving the best interests of the State and the
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General public. It is a prestigious institution imparting several
courses to the students and conducting research studies in
various subjects. The other block of land was an extent of 450
Acres near the proposed Shamshabad International Airport
which has now become very prime and valuable after the
commencement of International Airport.
c. The Stadia promised to be conveyed under the MoU were
recently developed, spending nearly 125 Crores of Rupees. The
Government further agreed to pass on several concessions on
Tax, Power, Water and sewerage tariffs in addition to the
concessions that are available to the educational institutions in
the State, under clause 2(XV) of the MoU.
d. The terms of the MoU were settled in such a way that even
when the State in exercise of its legislative powers annuls the
deal, the Rao brothers were provided protective clauses to
enforce damages against the State.
e. Yet another facet of the MoU is clause 2(II)(ii) and Annexure-5
of the MoU. According to the said clause all the existing stadia
in Hyderabad and Ranga Reddy district shall be leased out to
IMG (Maintenance grant of Rs. 2.5 Crores payable by the
landlord, the State) for a period not less than 45 years with the
option to IMG to purchase all such properties at the price
deduced according to the formula in Annexure-5 of the MoU.
According to Annexure -5 the price of the Property shall be the
basic value of the property around the Stadia as on the date
immediately prior to the date of the MoU (9.8.2003) minus (-)
expenditure incurred by IMG towards the maintenance and
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upkeep (MU) and the depreciation on the buildings. In the
course of 45 years lease period the value of the buildings will
become negligible. In this regard, when elections were held in
2004 and Mr.Naidu was a caretaker Chief Minister of the State,
he ensured that the State Government executed a hurried sale
deed dated 10.2.2004 conveying 400 Acres of land in Sy.No.25
Kancha Gachchibowli village to IMG. It is respectfully
submitted that the entire transaction was conducted with
collusive haste and speed with the sole aim of conferring
pecuniary and other benefits to the Rao brothers, thereby
depriving the State and its people of the fruits of
disposal/alienation of State largesse. The entire transaction is
unconscionable and was a result of a conspiracy hatched by
Mr.Naidu and the Rao brothers with the connivance of the
Principal Secretary of the Ministry of Youth, Tourism &
Culture, Mrs.Chandana Khan.
f. After the general elections in the year 2004, a review of the
same was directed and having regard to the clear compromise
with public interest and the loss to the State, the Government
issued an ordinance, which was later enacted as the A.P.
Government Property (Preservation, Protection and
Resumption) Act, 2006 to nullify the above referred transaction
between the State and IMG. This legislation was challenged by
IMG in W.P. No. 24781/2006 and the matter is pending
resolution before this Hon’ble Court.
g. According to the counter affidavit dated 01.02.2007 filed in the
above pending matter by Sri. J.R.Anand, the subsequent
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Principal Secretary to Government, Youth, Tourism and
Culture Department, in the following sequence, the entire
transaction was completed, with sinister intent and motive
underpinning every movement of the transaction:
i. A note file bearing No. 111080/S1/03 was moved by the
Prl. Secretary YAT&C Dept on 06.08.2003 for approval
of the Draft MOU.
ii. Four Ministers of the State Cabinet of the then
Government of Mr. N.Chandrababu Naidu and the then
Chief Secretary of the State approved the note file
(MOU) on the same day and the Chief Minister approved
the note file on 08.08.2003 with an endorsement to place
the file in the next cabinet meeting for approval.
iii. The MoU was clandestinely signed in haste on
09.08.2003 by the then Prl. Secretary YAT&C Dept
Smt.Chandana Khan on behalf of the State Government
without even placing the same before the cabinet for
approval. Therefore, from conception to actual
completion, the entire transaction was done in under 3
days.
iv. IMG has also falsely claimed to be the subsidiary of IMG
Academies, Florida, USA, an expert Sports School.
Except in the note file, there was no record of any
deliberations or dialogue between the Government and
the Florida Company.
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v. Office note bearing No. 111080/S1/03 is the only
foundation for the MoU for transfer of 400 Acres of land
belonging to the University of Hyderabad, and promise
for transfer of other lands and developed properties.
There was not even a notice to the Vice Chancellor of the
University to part with the land when the MoU came into
existence. The Executive council/Managing committee is
the lawful owner of all the properties of the University.
The Price of the land agreed to be sold was settled at Rs.
50,000 per acre. The Market price of the land at that time
was about Rs.3 crores per Acre.
vi. Another 450 Acres of Government lands at
Mamamidipalli near Shamshabad airport was promised
to be sold at Rs. 25,000/- per acre at the time of
Registration and another Rs 25,000/- to be paid after the
commencement of International Airport which should be
spent for the development of the roads and infrastructure
to the site. The market price of the said land was about
Rs. 1 Crore per acre.
vii. Further the State Government undertook to establish a
company called AP Sports Events Company which was
to be conferred with the title and ownership of all the
Government Sports Stadia and IMG was given the liberty
to take on lease or purchase all the Stadia owned by
A.P.Sports Events Company after it came into existence
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at a price to be worked out according to the formula
annexed to the MoU.
viii. Thus A.P.Sports Events Company was conceived and
destined to act as a Special Purpose Vehicle to perish
after effecting transfer of its properties to IMG,
especially when these properties were recently
constructed and developed at an expense of Rs 125
Crores by the State.
ix. Further, so long as IMG does not please to take over the
ownership of the Stadia of APSEC, the Government was
to pay a sum of Rs. 2.5 Crores per year towards
maintenance and upkeep of the leased stadia.
x. According to Annexure 5 to the MoU the price of the
Stadia shall be the basic value of the land around the
stadia as on the date immediately prior to the MOU +
Actual construction costs of the Stadia less (-) the amount
spent for maintenance by the company and depreciation
thereof. The basic rate of the surrounding properties in
the year 2003 is just 10% of today’s price. During 45
years of lease, after deducting the depreciation, IMG can
just payback the maintenance costs received from the
Government of A.P towards the price of the Stadia on the
day when it so pleases to purchase. It is surprising to note
that for the purpose of valuation of the stadia properties,
the criteria is the basic value of the lands surrounding the
stadia as on August 2003 and for the purpose of valuation
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of buildings thereon the value is that of the building -
(minus) depreciation.
xi. There are absolutely no returns to the State and the
general Public out of the said MoU, but only concessions
to IMG.
xii. The entire contract was entered into in conspiracy by the
political and bureaucratic executive of the day with the
Rao brothers to cause loss to the State exchequer.
xiii. It is respectfully submitted that each and every term of
the MoU entered into between the Government and IMG
was deliberately entered into without due diligence, to
cause illegitimate gain and benefit to the private
individuals and IMG and deliberately cause loss to the
Government and the public at large. This was clearly a
reciprocal arrangement between the Chief Minister and
the Rao brothers, where Mrs.Khan was a necessary and
willing accomplice. Lands worth several thousands of
crores were bartered away with no protection to the State
and no assured return to the State to a fledgling company
with no qualifications or competence.
xiv. The rights created for IMG over the properties were
worth Rs. 7000-8000 Crores, and IMG itself had paid up
capital of just Rs. 1.00 Lakh. It is reiterated that IMG was
incorporated on 05.08.2003 and the MoU running into
nearly 40 pages was prepared and approved on
06.08.2003 and signed on 09.08.2003. The self styled
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description of the company that it is a 100% subsidiary of
IMG Academies East Ltd. Florida is not verified either
by the Authorities of the State nor has the Chairman Mr.
Andrew Krieger signed on the Articles of association
submitted to the Registrar of companies. Curiously, the
Registrar of Companies registered the said company
without the signature of the Chairman of IMGAE whose
name was shown in the Articles of Association and
without disclosing the registered address for the office.
xv. Mr.Ahobala Rao signed the Articles of Association as
Director, but in W.P.No. 24781/2006 he has deposed as
co-chairman of IMG, in an attempt to try and avoid the
obvious culpability that will follow.
xvi. The State Assembly was dissolved on 14.11.2003 and the
State Government executed a sale deed conveying 400
Acres of land in Gachchibowli and delivered advance
possession of 450 acres of land at Mamidipalli to IMG. It
is also reliably learnt that major part of the consideration
towards University lands was met from the fee paid by
the State Government as consultancy for advice in
conducting the Afro-Asian games during the relevant
period.
xvii. Subsequently, with the change in Government at the
State, when this scam surfaced, the new dispensation
decided to secure investigation into it by issuing its
consent for investigation by the CBI under Sec. 6 of the
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Delhi Special Police Establishment Act, 1946 vide
G.O.Ms.No. 310 Home (SC.A) Department dated
13.12.2006 for exercise of powers and jurisdiction of the
members of the Delhi Special Police Establishment in the
State. Before issuing the notification, the State
Government addressed a letter to the Central Government
marking a copy to the CBI to investigate into the above
said deal, and after several reminders the above said
Notification was issued as it was done in several cases
like the Outer ring road case, Paritala Ravindra murder
case and Obulapuram Mining Company Case. Nearly
five years have lapsed after the State Government
accorded its consent under Section 6 of the 1946 Act.
xviii. Having regard to the delineated spheres of activity under
the Act on legal advice, it is submitted that once the State
is prima facie satisfied of the commission of the offences
and is of the view that having regard to the contours of
the same, it needs to be investigated by the CBI, the
Central Government is duty bound to honour and respect
the said request of the State as a matter of course and
ought not to be guided by convenience or expediency of
the time and matter, and effectuate the same by issuing a
consequential notification under section 5 of the Act, in
public interest to facilitate investigation into an offence.
xix. Alternatively, it is submitted that once a notification
under Section 6 of the Act is issued by the State, the
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Central Government ought to apply its mind to the
subject matter and the material before the State
Government, and take immediate action in regard thereto,
on objective consideration of the material available. In
the event of the Central Government not being in favour
of facilitating a CBI investigation, the same has also to be
communicated to the State in order to enable the State to
take a decision on entrusting the investigation to any of
the State Agencies. The power of the Central
Government under section 5 of the Act is coupled with a
duty to act expeditiously in accordance with law, with
due application of mind to the facts and circumstances of
the case.
xx. The Central Government cannot be permitted to abdicate
its duty towards the people, conferred on it under the Act,
having regard to the involvement of public interest in the
matter. By reason of the inaction of the UoI, no case is
registered by the CBI and no investigation is conducted.
There is existence of material and circumstances which
show that offences under Section 34, 120B, 409, 420,
IPC r/ w Sections 13(2) and 13(1)(c)&(d) and also
sections 8 and 9 of Prevention of Corruption Act have
been committed.
h. Obviously, all the above facts show that IMG is a shell
company incorporated with the sole purpose of handling the
assets of the State that was transferred with such haste for a
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throw-away price. This was clearly pursuant to a conspiracy
whereby Mr.Naidu would receive his dues for the outrageous
favours done to the Rao brothers, and the proceeds of this
disproportionate gain would be shared by the principal actors.
i. It is respectfully submitted that the sequence and contents of
the events narrated above clearly and demonstrably evidence
the following :
Criminal Conspiracy between the political executive of the
Government at the relevant point of time with private
individuals;
with a view to cheat the State of its legitimate revenues
accruable from the sale of public assets;
and to commit criminal breach of the trust reposed in them
by the public at large of public resources;
to confer undue and illegal pecuniary and other advantages
to private individuals by depriving the State of the same; and
abetment of criminal misconduct by known and unknown
public servants with the common object of defrauding the
public and belying their trust.
The said Sri Ahobila Rao was also indicted by Justice Chalapathi
Commission which enquired into the transaction entered into by the
Government and the BHC Agro (India) Private Limited for an
irrigation project in Kuppam which resulted in various findings of
dereliction of duty, culpable negligence and various recommendations
were issued. The Government also accepted the recommendations. At
that juncture, Sri Ahobila Rao moved W.P. No. 4976 of 2009
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contesting that the findings have been tendered without notice to him.
This Hon’ble Court by its interim order dt. 30-03-2009 was pleased to
stay all further proceedings including prosecution of the petitioner
therein pursuant to the acceptance of the report of commission of
inquiry. I am taking steps to implead myself in the said W.P. and seek
appropriate orders for ensuring that the proceedings initiated reach
their logical conclusion.
The above averments are likely to be multiplied and magnified
on further investigation, disclosing several other offences that will
need to be investigated as well. Several individuals have conspired
with Sri Naidu to subvert the system by causing pecuniary advantage
to themselves, and draining the State’s exchequer. Offences of
cheating, criminal breach of trust, corruption, money-laundering and
several others are made out by all the above facts. It is in the greatest
public interest that Sri Naidu and the other private Respondents be
investigated at the earliest by both the CBI and the ED, as the offences
are of a national and international nature, and which have
ramifications across the nation. It is therefore not possible for the
State police to investigate the same, and it requires one of these
important agencies to do the needful on the directions of the court. It
may also be noted that as far as the State of Andhra Pradesh is
concerned, it has given its consent to the CBI under Section 5 of the
DSPE Act, 1946 to investigate the case of the IMG MoU, but after 5
years of continued inaction by the Central Government, it is most
appropriate that the CBI be directed by this Hon’ble Court to go ahead
with investigation into the above.
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24. On legal advice, I submit as under:
I. That a Public Interest Litigation is maintainable under Article 226 of the
Constitution of India to ensure that probity, transparency and integrity in
governance is maintained so as to ensure that the constitutional goal of
governance by rule of law does not fall by the wayside.
II . That the ideals of the Constitution contemplate a ‘Limited Government’
where the State and its instrumentalities including the political executive
acts as a custodian or the trustee of the assets of the State, which are in turn,
the assets of the citizens of the State.
III The State being the principal dispenser of largesse would be required to
act with rectitude and each of its decisions and the decision making process
ought to be informed by the concerns of public interest and the greatest good
of the largest number.
IV. The instances named above, which would only amount to a negligible
percentage of the acts of omissions and commissions of the powerful
political executive under the stewardship of the Respondent No. 8 has
caused loss to the State exchequer, caused concentration of state wealth in
the hands of a few people, who had close proximity with the Respondent No.
8 and perpetuated their interests by reason of the unholy nexus of these
private businessmen/entities and brief-case Companies.
V. The policy making of the State under Respondent No. 8 was
manipulated and manicured to further the business and personal prospects of
each of these private individuals/entities to the depletion of the State
exchequer and substantial public assets were disposed of and dispensed with
utter disregard of public interest and revenues.
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VI . As a quid pro quo for such State Policies and State decisions to grant
largesse, the Respondent No. 8 and his family members made a huge fortune
and in the process amassing huge wealth disproportionate to their own
sources of income and also a huge vortex of complex and convoluted
transactions have been made in regard to purchase and sale of lands, and the
like, to erase any link or tracing of the trail back to the Respondent no.8
and his family.
VII. The ingenuity with which the entire process was put in place, each cog
in the process aimed, designed and calibrated to suit the private interests of
the Respondent No. 8 and his family and the members belonging to his
political family and his relatives, at the cost of the State exchequer and also
the interests of the citizens, requires an investigation by a competent and
credible agency, which has the wherewithal to unravel the complex web of
transactions authored by the Respondent No. 8 and members of his family.
VIII . The clout wielded by the Respondent No. 8 and his family in the
national scene virtually depleted the strength of the law enforcement
agencies and notwithstanding the open and at times brazen display of the
political power to silence the critics and also the investigative agencies, the
existing architecture of the investigating agencies, could not proceed further
in investigating into any of the issues concerning the criminal conduct of the
Respondent No. 8 and his members of family. The life and political career
of the 8th respondent has been a saga of manipulation, malevolence and acts
of personal corruption and public interest, as is detailed above, was his last
concern. While his public posturing has been one of exhortation of the
values of probity in public life, good governance and honest transactions
with the people at large, the governance of the State during his tenure as
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Chief Minister only yielded benefit to the a small cross section of people,
primarily led by his family, near and dear relatives and the party men owing
allegiance to Telugu Desam Party. For a good period of 9 years, the State
and its resources were deployed only to perpetuate the interests of the family
of the 8th respondent and his henchmen resulting in concentration of State
wealth in a few hands, which is antithetical to the rule of law. I shall co-
operate with any enquiry which may be undertaken in the subject matter and
shall furnish such other information as I might secure during the course of
the pendency of the W.P.
IX. In regard to securing information in the manner pleaded above, I had to
seek the help and contribution of many people, and primarily including Sri
Vijay Sai Reddy, Chartered Accountant, who has been the financial advisor
for the family since the year 1985.
X . I submit that law enforcement agencies independently investigating
into the subject matter is not even remotely possible against the Respondent
No. 8, his family members and his friends and well wishers. The evidence in
this regard is the inaction of the UOI in regard to investigation under the
Delhi Special Police Establishment Act in the matter concerning IMGA
Bharata case. I have impleaded the parties who are centrally the
beneficiaries of the acts of omission and commission of the Respondent No.
8 during his tenure as the Chief Minister of the State and in as much as the
relief in the present W.P. is limited to seek directions to investigate,
primarily, the role, conduct and other decisions of the 8th Respondent when
he was the Chief Minister of the State between 1995-2004, any other known
or unknown beneficiaries and colluders would be brought to light only after
investigation and all the parties, who are necessary to be made parties, in the
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context of the present lis, have been impleaded as party Respondents. In
view of the above submissions, I am constrained to file the present Writ
Petition.
25. I have no other alternate and effective remedy except approaching
this Hon’ble Court in extra-ordinary original jurisdiction under Article 226
of the Constitution of India.
26. I have not filed any writ nor initiated any suit or other proceedings
before any other Court of law seeking for the relief sought for in the present
Writ Petition.
27. It is therefore prayed that this Hon’ble Court may be pleased to issue a
writ, order or direction, more particularly one in the nature of Mandamus
declaring the inaction of the Respondents No.1 to 7 in initiating penal action
against the 8th Respondent and his associates, i.e., Respondents No.9 to 20
under the provisions of Prevention of Corruption Act, 1988 and the Money
Laundering Act 2002 and other applicable penal laws as illegal, arbitrary
and consequently direct the Respondents No.1 to 6 to initiate proceedings
under law including by issuing a further direction to the 4th Respondent to
conduct an investigation/probe in respect of allotment of lands, granting of
licences, decisions of disinvestment and amassing disproportionate wealth
and assets by the Respondents No.8 to 10 and the involvement of the
Respondents No. 11 to 20 and prosecute the unofficial respondents and
others in accordance with law and pass such other order or orders as this
Hon’ble Court may deem fit and proper in the facts and circumstances of the
case.
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28. Pending disposal of the Writ Petition, it is further prayed that this
Hon’ble Court may be pleased to direct the 4th Respondent to conduct a
preliminary enquiry into the subject matter and submit a preliminary
enquiry report to this Hon’ble Court in regard to the acts of omission and
commission of the Respondent No. 8 during his tenure as Chief Minister of
the State including in the matter of allot of lands, grant of contracts,
conferment of incentives and concessions and benami holdings of the 8th
respondent and his family members and pass such other order or orders as
are deemed fit and proper in the facts and circumstances of the case.
Solemnly affirmed and signed on this the 13th day of October, 2011 at Hyderabad DEPONENT
BEFORE ME,
ADVOCATE, HYDERABAD
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V E R I F I C A T I O N
I, Smt. Y. S. Vijaya, W/o late Dr. Y. S. Rajasekhara Reddy, aged about 55
years, Occ: MLA, being the Petitioner herein, do hereby declare that the
facts stated in paragraphs (1) to (23) are true and correct to the best of my
knowledge, belief and information and the contents in paragraphs No.24 to
27 are believed to be true and correct on the legal advice of my counsel.
Hence verified on this the 13th day of October, 2011 at Hyderabad.
Place : Hyderabad
Date : 17-10-2011 PETITIONER
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MEMORANDUM OF WRIT PETITION ( Filed under Article 226 of the Constitution of India )
IN THE HIGH COURT OF JUDICATURE:.ANDHRA PRAADESH AT HYDERABAD
Special Original Jurisdiction
W.P. No. OF 2011
Between
Y. S. Vijaya W/o late Dr. Y. S. Rajasekhara Reddy Aged about 55 years , Member of Legislative Assembly Honourary President, YSR Congress Party R/o Bakarapeta, Pulivendula Y.S. R. Kadapa District …. Petitioner And
1. The Union of India rep. by its Secretary, Ministry of Home, Shastri Bhavan, New Delhi
2. The State of A.P. Rep by its Chief Secretary Secretariat Buildings, Hyderabad
3 . The Government of A.P. rep. by its Principal Secretary, Home Department Secretariat Buildings, Hyderabad
4. The Central Bureau of Investigation rep by its Director, Shastri Bhavan New Delhi.
5. The Enforcement Directorate, rep.by its Director 6th floor, Loknayak Bhavan, Khan Market New Delhi – 110 003
6. The Director General of Police Andhra Pradesh, Lakadi-ka-pool, Hyderabad
7. The Securities Exchange Board of India Plot No C4-A. G Block, Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 rep by its Chairman
8. Sri Nara Chandrababu Naidu S/o N. Kharjura Naidu Aged about 61 years, M.L.A, R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
9. Smt. N. Bhuvaneswari W/o N. Chandrababu Naidu Aged about 55 years Occ. business R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
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10. Sri N. Lokesh S/o N. Chandrababu Naidu Aged about 28 years Occ. business R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
11 . Sri Ch. Ramoji Rao S/o Venkata Subba Rao Kartha of HUF. Aged about 75 years Chairman’s Residennce, Ramoji Film City, Anajpur, R.R. District, Hyderabad – 501 512 12. Ushodaya enterprises Private Limited Somajiguda, Hyderabad, Rep.by Sri Ch.Ramoji Rao, Kartha of HUF
13. M/s. Heritage Foods (India) Limited 6-1-541/C, Panjagutta, Hyderabad – 500 082 Rep by its Managing Director Smt. N. Bhuvaneswari
14. Mr. Ahobala Rao S/o P.V. Subba Rao Aged about 51 years Occ. Business Plot No. 305A, Road No. 25 Jubilee Hills, Hyderabad
15. Sri V. Nagaraja Naidu S/o Rama Naidu Aged : Major, Occ: Business, R/o Plot No. 1178, Jubilee Hills, Hyderabad
16. Sri Yelamanchili Satyanarayana Chowdhary S/o Yelamanchili Janardhana Rao, aged about 50 years R/o Plot No. 29, Sagar Co-op. Housing Society Road No. 2, Banjara Hills, Hyderabad - 34 17. Madhucon Sugar and Power Industries Limited 1-7-70, Madhu Complex, Jubileepura Khammam – 507 003, Rep.by its Founder Sri Nama Nageswara Rao. 18 . Maganti Rajababu alias Murali Mohan S/o Maganti Madhava Rao, aged : Major , Occ. Business R/o A14, Film Nagar, Jubilee Hills, Hyderabad
19. Sri Karnati Venkateswara Rao S/o Kotaiah Aged about 50 years, Occ. Chairman, M/s. Kakinada Sea Ports Limited, 8-2-418, Meenakshi House, 3rd floor, Road No. 7, Banjara Hills, Hyderabad - 500 034
20. Sri Chintakunta Munuswamy Ramesh S/o Munuswamy Naidu, Aged : Major, Occ. Chairman, Rithwik group of Companies , 8-2-269/S/91/B, Road No. 2, Sagar Society Banjara Hills, Hyderabad - 34 … RESPONDENTS
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The address of the Petitioner for the purpose of service of all notices
and summons is that her Counsel, M/s. Kasa Jagan Mohan Reddy (459),
Advocate, 5-9-839, Gun Foundry, Hyderabad.
For the reasons stated in the accompanying affidavit, the Petitioner
herein prays that this Hon’ble Court may be pleased to issue a writ, order or
direction, more particularly one in the nature of Mandamus declaring the
inaction of the Respondents No.1 to 6 in initiating penal action against the
8th Respondent and his associates, i.e., Respondents No.9 to 20 under the
provisions of Prevention of Corruption Act, 1988 and the Money Laundering
Act 2002 and other applicable penal laws as illegal, arbitrary and
consequently direct the Respondents No.1 to 6 to initiate proceedings under
law including by issuing a further direction to the 4th Respondent to conduct
an investigation/probe in respect of allotment of lands, granting of licences,
decisions of disinvestment and amassing disproportionate wealth and assets
by the Respondents No.8 to 10 and the involvement of the Respondents No.
11 to 20 and prosecute the unofficial respondents and others in accordance
with law and pass such other order or orders as this Hon’ble Court may
deem fit and proper in the facts and circumstances of the case.
Place : Hyderabad Date : 17-10-2011 COUNSEL FOR THE PETITIONER
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MEMORANDUM OF WRIT PETITION MISCELLANEOUS PETITION ( Filed under Article Section 151 of C.P.C.)
IN THE HIGH COURT OF JUDICATURE:.ANDHRA PRAADESH AT HYDERABAD
W.P.M.P.NO. OF 2011
IN
W.P. No. OF 2011 Between
Y. S. Vijaya W/o late Dr. Y. S. Rajasekhara Reddy Aged about 55 years , Member of Legislative Assembly Honourary President, YSR Congress Party R/o Bakarapeta, Pulivendula Y.S. R. Kadapa District …. Petitioner/Petitioner And
1. The Union of India rep. by its Secretary, Ministry of Home, Shastri Bhavan, New Delhi
2. The State of A.P. Rep by its Chief Secretary Secretariat Buildings, Hyderabad
3 . The Government of A.P. rep. by its Principal Secretary, Home Department Secretariat Buildings, Hyderabad
4. The Central Bureau of Investigation rep by its Director, Shastri Bhavan New Delhi.
5. The Enforcement Directorate, rep.by its Director 6th floor, Loknayak Bhavan, Khan Market New Delhi – 110 003
6. The Director General of Police Andhra Pradesh, Lakadi-ka-pool, Hyderabad
7. The Securities Exchange Board of India Plot No C4-A. G Block, Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 rep by its Chairman
8. Sri Nara Chandrababu Naidu S/o N. Kharjura Naidu Aged about 61 years, M.L.A, R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
9. Smt. N. Bhuvaneswari W/o N. Chandrababu Naidu Aged about 55 years Occ. business R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
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10. Sri N. Lokesh S/o N. Chandrababu Naidu Aged about 28 years Occ. business R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
11 . Sri Ch. Ramoji Rao S/o Venkata Subba Rao Kartha of HUF. Aged about 75 years Chairman’s Residennce, Ramoji Film City, Anajpur, R.R. District, Hyderabad – 501 512 12. Ushodaya enterprises Private Limited Somajiguda, Hyderabad, Rep.by Sri Ch.Ramoji Rao, Kartha of HUF
13. M/s. Heritage Foods (India) Limited 6-1-541/C, Panjagutta, Hyderabad – 500 082 Rep by its Managing Director Smt. N. Bhuvaneswari
14. Mr. Ahobala Rao S/o P.V. Subba Rao Aged about 51 years Occ. Business Plot No. 305A, Road No. 25 Jubilee Hills, Hyderabad
15. Sri V. Nagaraja Naidu S/o Rama Naidu Aged : Major, Occ: Business, R/o Plot No. 1178, Jubilee Hills, Hyderabad
16. Sri Yelamanchili Satyanarayana Chowdhary S/o Yelamanchili Janardhana Rao, aged about 50 years R/o Plot No. 29, Sagar Co-op. Housing Society Road No. 2, Banjara Hills, Hyderabad - 34 17. Madhucon Sugar and Power Industries Limited 1-7-70, Madhu Complex, Jubileepura Khammam – 507 003, Rep.by its Founder Sri Nama Nageswara Rao. 18 . Maganti Rajababu alias Murali Mohan S/o Maganti Madhava Rao, aged : Major , Occ. Business R/o A14, Film Nagar, Jubilee Hills, Hyderabad
19. Sri Karnati Venkateswara Rao S/o Kotaiah Aged about 50 years, Occ. Chairman, M/s. Kakinada Sea Ports Limited, 8-2-418, Meenakshi House, 3rd floor, Road No. 7, Banjara Hills, Hyderabad - 500 034
20. Sri Chintakunta Munuswamy Ramesh S/o Munuswamy Naidu, Aged : Major, Occ. Chairman, Rithwik group of Companies , 8-2-269/S/91/B, Road No. 2, Sagar Society Banjara Hills, Hyderabad - 34 … Respondents/Respondents
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For the reasons stated in the affidavit filed in support of the above
Writ Petition, the Petitioner herein pray that this Hon’ble Court may be
pleased to direct the 4th Respondent to conduct a preliminary enquiry into
the subject matter and submit a preliminary enquiry report to this Hon’ble
Court in regard to the acts of omission and commission of the Respondent
No. 8 during his tenure as Chief Minister of the State including in the matter
of allot of lands, grant of contracts, conferment of incentives and
concessions and benami holdings of the 8th respondent and his family
members and pass such other order or orders as are deemed fit and proper in
the facts and circumstances of the case.
Place : Hyderabad Date : 17-10-2011 COUNSEL FOR THE PETITIONER
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ADDRESSES OF THE RESPONDENTS
1. The Union of India rep. by its Secretary, Ministry of Home, Shastri Bhavan, New Delhi
2. The State of A.P. rep by its Chief Secretary Secretariat Buildings, Hyderabad
3 . The Government of A.P. rep. by its Principal Secretary, Home Department Secretariat Buildings, Hyderabad
4. The Central Bureau of Investigation rep by its Director, Shastri Bhavan New Delhi.
5. The Enforcement Directorate, rep.by its Director 6th floor, Loknayak Bhavan, Khan Market New Delhi – 110 003
6. The Director General of Police Andhra Pradesh, Lakadi-ka-pool, Hyderabad
7. The Securities Exchange Board of India Plot No C4-A. G Block, Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 rep by its Chairman
8. Sri Nara Chandrababu Naidu S/o N. Kharjura Naidu M.L.A, R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
9. Smt. N. Bhuvaneswari W/o N. Chandrababu Naidu R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
10. Sri N. Lokesh S/o N. Chandrababu Naidu R/o Plot No. 1310, Road No. 65 Jubilee Hills, Hyderabad
11. Sri Ch. Ramoji Rao S/o Venkata Subba Rao Kartha of HUF. Aged about 75 years Chairman’s Residennce, Ramoji Film City, Anajpur, R.R. District, Hyderabad – 501 512
12. Ushodaya enterprises Private Limited Somajiguda, Hyderabad, Rep.by Sri Ch.Ramoji Rao, Kartha of HUF
13. M/s. Heritage Foods (India) Limited 6-1-541/C, Panjagutta, Hyderabad – 500 082 Rep by its Managing Director Smt. N. Bhuvaneswari
14. Mr. Ahobala Rao S/o P.V. Subba Rao Plot No. 305A, Road No. 25 Jubilee Hills, Hyderabad
15. Sri V. Nagaraja Naidu S/o Rama Naidu R/o Plot No. 1178, Jubilee Hills, Hyderabad
16. Sri Yelamanchili Satyanarayana Chowdhary S/o Yelamanchili Janardhana Rao, R/o Plot No. 29, Sagar Co-op. Housing Society Road No. 2, Banjara Hills, Hyderabad - 34
17. Madhucon Sugar and Power Industries Limited 1-7-70, Madhu Complex, Jubileepura Khammam – 507 003, Rep.by its Founder Sri Nama Nageswara Rao.
18 . Maganti Rajababu alias Murali Mohan S/o Maganti Madhava Rao, R/o A14, Film Nagar, Jubilee Hills, Hyderabad
19. Sri Karnati Venkateswara Rao S/o Kotaiah Chairman, M/s. Kakinada Sea Ports Limited, 8-2-418, Meenakshi House, 3rd floor, Road No. 7, Banjara Hills, Hyderabad - 500 034
20. Sri Chintakunta Munuswamy Ramesh S/o Munuswamy Naidu, Chairman, Rithwik group of Companies , 8-2-269/S/91/B, Road No. 2, Sagar Society, Banjara Hills, Hyderabad - 34 ADVOCATE COUNSEL FOR THE PETITIONER
- 96 -
IN THE HIGH COURT OF JUDICATURE : ANDHRA PRADESH: AT HYDERABAD
W.P NO. OF 2011
Between :
Smt. Y.S.Vijaya … Petitioner
And The Union of India rep. by its Secretary, Ministry of Home, Shastri Bhavan, New Delhi and 19 others … Respondents
PRAYER TO THE WRIT PETITION UNDER ARTICLE 226 OF
THE CONSTITUTION OF INDIA
That this Hon’ble Court may be pleased to issue a writ, order or direction,
more particularly one in the nature of Mandamus declaring the inaction of
the Respondents No.1 to 6 in initiating penal action against the 8th
Respondent and his associates, i.e., Respondents No.9 to 20 under the
provisions of Prevention of Corruption Act, 1988 and the Money Laundering
Act 2002 and other applicable penal laws as illegal, arbitrary and
consequently direct the Respondents No.1 to 6 to initiate proceedings under
law including by issuing a further direction to the 4th Respondent to conduct
an investigation/probe in respect of allotment of lands, granting of licences,
decisions of disinvestment and amassing disproportionate wealth and assets
by the Respondents No.8 to 10 and the involvement of the Respondents No.
11 to 20 and prosecute the unofficial respondents and others in accordance
with law and pass such other order or orders as this Hon’ble Court may
deem fit and proper in the facts and circumstances of the case.
COUNSELS:
FOR PETITIONER:
FOR RESPONDENTS No.1, 5 & 7: SOLICITOR GENERAL
FOR RESPONDENTS NO.2, 3 & 6 : G.P.FOR HOME
FOR RESPONDENTS NO.8 TO 20 : BATTA PAID
- 97 -
HYDERABAD : DISTRICT IN THE HIGH COURT JUDICATURE ANDHRA PRADEH:AT HYDERABAD
W.P.NO. OF 2011 MEMORANDUM OF WRIT PETITION FILED BY : M/s. KASA JAGANMOHAN REDDY ( 459)
ADVOCATE
COUNSEL FOR THE PETITIONER
- 98 -
HYDERABAD : DISTRICT IN THE HIGH COURT JUDICATURE ANDHRA PRADEH:AT HYDERABAD
W.P.M.P.NO. OF 2011
IN
W.P.NO. OF 2011
DIRECTION PETITION FILED BY : M/s. KASA JAGANMOHAN REDDY
(459) ADVOCATE
COUNSEL FOR THE PETITIONER
- 99 -
IN THE HIGH COURT OF JUDICATURE: ANDHRA PRADESH AT HYDERABAD
W.P NO. OF 2011
Between : Smt. Y.S. Vijaya … Petitioner And
The Union of India rep. by its Secretary, Ministry of Home, Shastri Bhavan, New Delhi and 19 others … Respondents
RUNNING INDEX
S.No. Description of
Document
Date of
Paper
Date of
Filing
Page
Nos.
Ex.No.
1 Service Certificate 16-10-2011 16-10-2011 1
2 Court Fee 16-10-2011 16-10-2011 2
3 Writ Petition 16-10-2011 16-10-2011 3 – 5
4 Annexure 16-10-2011 16-10-2011
5 Affidavit 16-10-2011 16-10-2011
6 Verification 16-10-2011 16-10-2011
MATERIAL PAPERS Book No. 1 – VIII
7 Additional Counter Affidavit filed Sri Chandrababu Naidu in W.P.No.7606/1988
30-06-1988 16-10-2011 101 - 107 P1
8 Various Orders in Rc.No.B1 2837/2002 of RDO, Guduru.
14-12-2004 16-10-2011 108 - 116 P2
9 Various Encumbrance Certificates issued by Sub-Registrar, Venkatagiri, Nellore
16-10-2011 117 – 178 P3
10 Photographs relating to Nindali Village Lands belongs to Sri Chandra Babu Naidu
16-10-2011 179 - 187 P4
11 Self declaration of assets by Sri Chandra Babu Naidu & Family
02-04-1999 188 P5
- 100 -
before the speaker of A.P.Assembly Newspaper Clipping
12 Self declaration of assets by Sri Chandra Babu Naidu & his family before the Election Commission
02-04-2004 16-10-2011 189 - 196 P6
13 Self declaration of assets by Sri Chandra Babu Naidu & his family before the Election Commission
29-03-2009 16-10-2011 197 - 206 P7
14 Settlement Deed executed by Smt. N.Ammannamma in favour of N.Lokesh
20-12-2001 16-10-2011 207 - 213 P8
15 Self Declaration of assets by Sri Chandra Babu Naidu
02-09-2011 16-10-2011 214 - 219 P9
16 Sale Executed by J.P.Vittal in faviour of N.Ammannamma
11-12-2000 16-10-2011 220 - 229 P10
17 Gift Deed executed by Smt. N.Ammannamma in favour of N.Lokesh
Dec.2001 16-10-2011 230 - 231 P11
18 Sale Deed executed by Smt. N.Ammanamma & Lokesh in favoure of J.Satyanarayana
24-03-2004 16-10-2011 232 - 241 P12
19 Annual return of M/s. Bizpro Technologies
10-01-2003 16-10-2011 242 - 250 P13
20 MOA of M/s. Bizpro Technologies
19-02-2000 16-10-2011 251 – 260 P14
21 Sale Deed executed by Smt. N.Bhuvaneswari and others in favour of K.Satish Reddy
27-07-2000 16-10-2011 260 - 271 P15
22 Sale Deed executed by Smt. N.Bhuvaneswari and others in favour of K.Preeti Reddy
27-07-2000 16-10-2011 272 - 281 P16
23 Statutory Notification of Cyberabad Development Authority
16-10-2011 281 - 284 P17
24 Memorandum for recording creation of Mortgage by depositing title deeds by Divyasree
13-03-2009 16-10-2011 285 - 302 P18
- 101 -
25 Certificate of Incorporation of Bhuvaneswari Carbides and Chemicals
21-06-1983 16-10-2011 303 - 304 P19
26 MOA of Bhuvaneswari Carbides and Chemicals
21-06-1983 16-10-2011 305 - 308 P20
27 AOA of Bhuvaneswari Carbides and Chemicals
21-06-1983 16-10-2011 309 - 312 P21
28 Certificate of registration of Mortgage of Bhuvaneswari Carbides & Chemicals
20-02-1984 16-10-2011 313 P22
29 Creation of Charge Document of Bhuvaneswari Carbides & Chemicals
05-06-1984 16-10-2011 314 - 315 P23
30 Creation of Charge Document of Bhuvaneswari Carbides & Chemicals
11-07-1983 16-10-2011 316 - 317 P24
31 Creation of Charge Document of Bhuvaneswari Carbides & Alloys
21-08-1984 16-10-2011 318 - 319 P25
32 Creation of Charge Document of Bhuvaneswari Carbides & Chemicals
28-07-1983 16-10-2011 320 - 322 P26
33 Mortgage Certificate 02-02-1985 16-10-2011 323 P27
34 Creation of Charge Document of Bhuvaneswari Carbides & Chemicals
05-06-1984 16-10-2011 324 - 325 P28
35 Creation of Charge Document of Bhuvaneswari Carbides & Chemicals
19-07-1984 16-10-2011 326 - 327 P29
36 Annual return of Bhuvaneswari Carbides and Chemicals
31-03-2003 16-10-2011 328 - 332 P30
37 Certificate of Incorporation of Bhuvaneswari Carbides and Allyos
20-01-1984 16-10-2011 333 - 334 P31
- 102 -
38 AOA of Bhuvaneswari Carbides of Allyos
19-01-1984 16-10-2011 335 – 339 P32
39 MOA of Bhuvaneswari Carbides of Allyos
19-01-1984 16-10-2011 340 – 344 P33
40 Certificates of Charge of Bhuvaneswari Carbides and Alloys
16-10-2011 345 - 348 P34
41 Audit Report of Bhuvaneswari Carbides and Alloys
28-08-2003 16-10-2011 349 - 351 P35
42 Annual returns of Bhuvaneswari Carbides and Alloys
16-10-2011 352 - 368 P36
43 Annual Reports of Bhuvaneswari Carbides and Alloys
16-10-2011 369 - 399 P37
44 Name change of Heritage Infra to SCM Infra
11-12-2008 16-10-2011 400 – 405 P38
45 Annual return of Heritage Infra
2007-2008 16-10-2011 406 – 414 P39
46 Mortgage Agreement between Heritage Infra and SICOM Ltd.,
25-06-2008 16-10-2011 415 - 426 P40
47 Mortgage Document and Incorp. Certificates of Heritage infra & SCM
16-10-2011 427-435 P41
48 Annual report of Sujana Universal Industries and subsidiaries
2008-09 16-10-2011 436 - 558 P42
49 12th Annual Report of Global Forgings Ltd.,
2008 - 09 16-10-2011 559 - 584 P43
50 Annual Report of Tejaswini Engineering
2008-09 16-10-2011 585-606 P44
51 Annual Report of Tejdeep Engineering
2008-09 16-10-2011 607-630 P45
52 Annual Report of Glade Steel private limited
2008-09 16-10-2011 631-653 P46
53 Annual Report of Futuretech industries
2008-09 16-10-2011 654-684 P47
54 Annual Report of Victoria Steel
2008-09 16-10-2011 685-709 P48
55 Annual Report of Endeavour industries
2008-09 16-10-2011 710-734 P49
- 103 -
56 Annual Report of Godavari Exports and imports
2008-09 16-10-2011 735-755 P50
57 Annual report of Ganga Exim pvt ltd
2008-09 16-10-2011 756-779 P51
58 Annual Report of Handum industries
2008-09 16-10-2011 780-824 P52
59 Annual Report of Omicron Bio-genesis
2008-09 16-10-2011 825-851 P53
60 Annual Report of Ganga Industrial corporation
2008-09 16-10-2011 852-872 P54
61 Annual Report of Ushodaya Enterprises
2007-08 16-10-2011 873-875 P55
62 Annual Report of Devaki Commercials Pvt Ltd
2007-08 16-10-2011 876-885 P56
63 Company Petition filed by RPL, In Gujarat HC
16-4-2002 16-10-2011 886-888 P57
64 Scheme of Amalgamation
--- 16-10-2011 889-905 P58
65 News Paper Clipping 7-4-2009 16-10-2011 906-908 P59
66 Annual Return of Shinano Retail Pvt. Ltd
2007-08 16-10-2011 909-920 P60
67. Annual Return of teesta Retail Pvt. Ltd.
2007-08 16-10-2011 921-932 P61
68 Annual Report of Devaki Comm. Pvt. Ltd.
2007-08 16-10-2011 933-941 P62
69 Audited A/c of RIIHL 2007-08 16-10-2011 942-960 P63
70 Form 2 of Equator Trading Enterprises
30-01-2008 16-10-2011 961-964 P64
71 Form 2 of Altitudde Mercantile Pvt. Ltd.
29-01-2008 16-10-2011 965-969 P65
72 Form 32 of Equator Trading Enterprises
--- 16-10-2011 970-973 P66
73 Form 32 of Altitudde Mercantile Pvt. Ltd.
--- 16-10-2011 974-977 P67
74 Form 18 of Equator Trading Enterprises
1-2-2008 16-10-2011 978-979 P68
- 104 -
75 Form 18 of Altitudde Mercantile Pvt. Ltd.
1-2-2008 16-10-2011 980-981 P69
76 Annual Report of Shinano Retail Pvt. Ltd
2007-08 16-10-2011 982-993 P70
77 Annual Return of Devaki Comm. Pvt. Ltd.
2007-08 16-10-2011 994-1011 P71
78 Annual Returns of Kavindra Comm. Pvt. Ltd.
--- 16-10-2011 1012-1036 P72
79 Form 2 of Ushodaya Enterprises
30-1-2008 16-10-2011 1037-1040 P73
80 Form 2 of Equator Trading
30-1-2008 16-10-2011 1041-1044 P74
81 News Paper Clippings Regarding Kampani deal
2-2-2008 16-10-2011 1045-1047 P75
82 Form 18 of Kavindra Commercials
--- 16-10-2011 1048-1049 P76
83 Annual Return of UEPL
2006-07 16-10-2011 1050-1059 P77
84 Form 32 of UEPL 28-12-2007 16-10-2011 1060-1062 P78
85 Auditors Report of UEPL
17-11-2009 16-10-2011 1063-1076 P79
86 Annual Return of UEPL
2008-09 16-10-2011 1077-1085 P80
87 Proceedings of Land Reforms Tribunal
8-8-2007 16-10-2011 1086-1098 P81
88 Newspaper Clipping related to KG Basin
31-1-2007 16-10-2011 1099 P82
89 Amendment to GO MS No.506
02-02-2001 16-10-2011 1100 P83
90 IT incentive policy GO MS No.2
11-1-2001 16-10-2011 1101-1102 P84
91 Stamp Duty Exemption to Reliance Infocomm. GO MS No.127
19-2-2001 16-10-2011 1103-1104 P85
92 Stamp Duty Exemption to Reliance Infocomm.
19-2-2001 16-10-2011 1105-1106 P86
93 Incentive policy GO MS No.
16-3-2001 16-10-2011 1107-1109 P87
- 105 -
94 Exemption of Property Tax and Transfer duty. GO MS No.156 MA
24-4-2001 16-10-2011 1110-1111 P88
95 100 percent exemption of Transfer Duty GO MS No.157 MA
24-4-2001 16-10-2011 1112 P89
96 Exemption Santion of Transfer Duty GO MS No.164 MA
26-4-2001 16-10-2011 1113 P90
97 IT incentive policy GO MS No.27
28-4-2001 16-10-2011 1114-1116 P91
98 Rebate in Registration Charges to Catalytic software - GO MS No.33
30-5-2001 16-10-2011 1117-1118 P92
99 Rebate in Registration Charges to JVP Soft - GO MS No.34
30-5-2001 16-10-2011 1119-1121 P93
100 Rebate in Registration Charges to Soham software - GO MS No.42
17-9-2001 16-10-2011 1122-1123 P94
101 Rebate in Registration Charges to Soft Pro- GO MS No.43
17-9-2001 16-10-2011 1124-1126 P95
102 Opening of Escrow A/C by Margadarsi Financiers
4-12-2006 16-10-2011 1127 P96
103 “India Today” Story on Ramoji Land grabbing
12-09-2011 16-10-2011 1128-1129 P97
104 Encumbrance certificates and Registered sale deeds of Palmakole Lands
--- 16-10-2011 1130-1169 P98
105 Registered sale deeds in favour of Maganti Murali Mohan
19-3-1996 16-10-2011 1170-1201 P99
106 Concessions, permits granted by IT and C Dept.
-- 16-10-2011 1202-1204 P100
107 Land allotments to IT companies By APIIC
--- 16-10-2011 1205-1209 P101
108 Land allotments to IT companies By CM/ Cabinet
--- 16-10-2011 1210 P102
109 Land allotment with Rebate on cost of land and various subsidies
--- 16-10-2011 1211-1228 P103
110 RTPP lands allotted to BPL power- GO MS No.57
20-5-2000 16-10-2011 1229-1230 P104
- 106 -
111 RTPP lands allotted to BPL power- GO MS No.112
27-11-2000 16-10-2011 1231-1233 P9105
112 RTPP lands allotted to BPL power- GO MS No. 2
1-1-2001 16-10-2011 1234-1235 P106
113 Newspaper Clipping on Konaseema power- Probe order
28-7-2004 16-10-2011 1236-1237 P9107
114 Newspaper Clippings on Konaseema power- bribe issue
29-9-2003 16-10-2011 1238-1242 P108
115 Photograph of NTR Trust Bhavan
-- 16-10-2011 1243 P109
116 Registration of NTR Trust under IT ACt
11-12-1997 16-10-2011 1244 P110
117 NTR Trust recipts-payments
31-3-2004 16-10-2011 1245-1246 P111
118 NTR Trust deed and Amendment Deed
15-2-1997 16-10-2011 1247-1272 P112
119 Induction of new trustee in to NTR Trust
28-12-2007 16-10-2011 1273 P113
120 Resignation of Trustees- NTR trust
16-11-2007 16-10-2011 1274-1275 P114
121 Income Tax assessment Order and related documents
---- 16-10-2011 1276-1312 P115
122 IT returns and related documents of NTR Memorial Trust
2003-04 16-10-2011 1313-1408 P116
123 Donors list of NTR Memorial Trust
31-12-2009 16-10-2011 1409-1438 P117
124 CAG Reports on Kakinada port
31-3-2004 16-10-2011 1439-1445 P118
125 Annual Return of Kakinada sea ports
2003-04 16-10-2011 1446-1458 P119
126 Annual Report of Kakinada sea ports
2004-05 16-10-2011 1459-1485 P120
127 Annual Return of Kakinada sea ports
2004-05 16-10-2011 1486-1499 P121
128 ICRA rating for Kakinada Sea port- misleading info on Everlink Asia
6-4-2010 16-10-2011 1500-1501 P122
- 107 -
129 Info on KSPL at Ministry of finance Website- misleading info on Everlink Asia
--- 16-10-2011 1502-1503 P123
130 Shareholders list and Consent letters- KSPL
24-9-2005 16-10-2011 1504-1512 P124
131 Annual Return of South India Infra
2003-04 16-10-2011 1513-1522 P125
132 Form 23AC of Salgaocar mining
2007-08 16-10-2011 1523-1530 P126
133 Privatization of Palair Sugars- in favour of Madhucon Sugars- GO MS No.72
17-12-2003 16-10-2011 1531-1538 P127
134 Privatization of Latchayyapeta Sugars- in favour of NCS Sugars- GO MS No.7
10-1-2003 16-10-2011 1539-1553 P128
135 Privatization of Madhunagar Sugars- in favour of Trident sugars - GO MS No.49
16-8-2003 16-10-2011 1554-1563 P129
136 Privatization of Parchur cotton mills –in favour of JVR Industries- GO MS No.10
4-2-2003 16-10-2011 1564-1567 P130
137 Privatization of Chagallu Distillery - in favour of Jeypore sugars- GO MS No.44
20-11-2002 16-10-2011 1568-1585 P131
138 Disinvestment in Godavari Fertilizers- GO MS No.32
7-6-2003 16-10-2011 1586-1587 P132
139 Privatization of Nagarjuna Sugars - in favour of SCM - GO MS No.26
17-5-2003 16-10-2011 1588-1591 P133
140 Privatization of Rajahmundry spinning mill - in favour of NRKR Textiles - GO MS No.6
10-1-2003 16-10-2011 1592-1597 P134
141 Privatization of ASM Sugars- in favour of Delta papermills - GO MS No.14
25-2-2003 16-10-2011 1598-1603 P135
142 Privatization of Adilabad spinning mill - in favour of Astalaxmi Spinning -
20-11-2002 16-10-2011 1604-1606 P136
- 108 -
GO MS No.45 143 Privatization of
Hanuman Sugars - in favour of Delta Sugars - GO MS No.50
31-12-2002 16-10-2011 1607-1610 P137
144 Sale of farm lands of Nizam Sugars - GO MS No.100
18-10-2002 16-10-2011 1611-1612 P138
145 Sale of lands of Nizam Sugars - GO MS No.31
11-3-2003 16-10-2011 1613 P139
146 Dispose of Un Economic Farm lands of Nizam Sugars- GO MS no.49
30-3-2001 16-10-2011 1614 P140
147 Restructuring of APSFT&TDCL- GO MS no.34
12-6-2003 16-10-2011 1615-1617 P141
148 Restructuring of APSWC- GO MS no.33
12-6-2003 16-10-2011 1618-1622 P142
149 Restructuring of APTS- GO MS no.24
19-4-2003 16-10-2011 1623-1624 P143
150 Restructuring of NEDCAP- GO MS no.25
19-4-2003 16-10-2011 1625-1626 P144
151 Amendment orders for Disinvestment proposal of Godavari Fertilizers – GO MS No.102
25-8-2001 16-10-2011
1627
P145
152 Annual Return of Vighneswara Technical
2007-08 16-10-2011 1628-1635 P146
153 MoA Of Madhucon Sugars
26-10-2002 16-10-2011 1636-1643 P147
154 Annual Report of Maducon Sugars
2009-10 16-10-2011 1644-1667 P148
155 State Government policy of privatization
2004 16-10-2011 1668-1714 P149
156 House Committee Recommendations on Nizam Sugar unites Sale- Related GOs
-- 16-10-2011 1715-1727 P150
157 Implementation of VRS to Chittoor dairy- Related GOs
23-12-2002 16-10-2011 1728-1740 P151
158 Photograph of Heritage foods corporate office- Hyderabad
--- 16-10-2011
1741
P152
- 109 -
159 MOA of Heritage foods india limited
18-5-1992 16-10-2011 1742-1748 P153
160 Photograph of Park Hotel Clarke quay- Singapore
--- 16-10-2011 1749 P154
161 Land holding details of Park Hotel Clarke quay
-- 16-10-2011 1750-1755 P155
162 Share holding details of Park Hotel Clarke and Parksing property
-- 16-10-2011 1756-1761 P156
163 Mauritius holdings in IJM India limited
3-1-2007 16-10-2011 1762-1769 P157
164 MOA of IJM India 1-1-1998 16-10-2011 1770-1828 P158
165 Certificate of Incorp- AP Gems and Jewellary park
24-9-2002 16-10-2011 1829 P159
166 Annual return and annual reports of Ap Gems and Jewellary
2003-04 16-10-2011 1830-1839 P160
167 Mauritius holding in AP Gems& Jewellary
--- 16-10-2011 1840-1862 P161
168 MOA of AP Gems and Jewellary Park ltd
23-9-2002 16-10-2011 1863-1874 P162
169 Letter to CM Chandrababu naidu on Yeleru scam by MLAs
Feb-1996 16-10-2011 1875-1877 P163
170 Post facto approval of funds by CM Chandrababu Naidu
1-10-1996 16-10-2011 1878 P164
171 Deposition of Sri Kosal Ram before Justice Somasekhara Commission
6-3-1999 16-10-2011 1879-1945 P165
172 Statement of decretal charges granted and paid
-- 16-10-2011 1946-1953 P166
173 Deposition of Sri M.S.Rajaji before Justice Somasekhara Commission
24-3-1999 16-10-2011 1954-1967 P167
174 Annual reports of Rithwik Projects
2007-08
2009-10
16-10-2011 1968-1998 P168
175 Annual Return of Rithwik projects
2007-08 16-10-2011 1999-2084 P169
- 110 -
176 MOA of IMG Academies Bharata
4-8-2003 16-10-2011 2085-2095 P170
177 Regd. Sale deed in favour of IMG Bharata
10-02-2004 16-10-2011 2096-2105 P171
178 Act 11 of 2007 11-4-2007 16-10-2011 2106-2110 P172
179 Chronological developments and minutes of meeting
29-9-2003 16-10-2011 2111-2118 P173
180 Letter to Revenue secretary from APIIC VC and MD
24-1-2004 16-10-2011 2119-2120 P174
181 Letter to MD, APIIC by Spl secy to CM
22-1-2004 16-10-2011 2121 P175
182 Communications between CCLA and Collector, Rangareddy Dist. – related docs
30-1-2004 16-10-2011 2122-2138 P176
183 Letter to Revenue Secy by Spl secy To CM
19-2-2004 16-10-2011 2139-2141 P177
184 Memorandum for the council of ministers and MOU
Feb-2004 16-10-2011 2142-2190 P178
185 CBI enquiry about IMG land deals – GO MS No.310
13-12-2006 16-10-2011 2191 P179
186 Counter affidavit filed by J.R.Anand in W.P. No.24781 of 2006
1-2-2007 16-10-2011 2192-2208 P180
187 Report of the commissioner of inquiry on Kuppam project allegations by Justice Chalapathi
19-4-2007 16-10-2011 2209-2424 P181