The Central Bureau of Investigation (CBI) submitted to the special court that in a quid pro quo arrangement, the YS Rajasekhara Reddy regime gifted away over 20,000 acres of government land to private companies and individuals who in turn invested about Rs 850 crore in the companies that were floated by the late chief minister’s son Jaganmohan Reddy.
CBI also stated that all these land allotments were made bypassing rules. The land is now being misused contrary to the condition and purpose of their allotments.
CBI also stated that Vijay Sai Reddy, as director of Oriental Bank of Commerce (OBC) from 2006 to 2009, had sanctioned Rs 200 crore as term loan to Raghuram Cements which has now become a Jagan company under the new name of Bharati Cements.
CBI made these submissions while opposing the bail petition of Vijay Sai Reddy in Jagan’s assets case.