The Central Bureau of Investigation is reported to have established the black money route to the companies owned by Kadapa MP Y.S. Jagan Mohan Reddy from fictitious companies based in Kolkata.
The modus operandi is that fictitious companies are floated with employees, servants, drivers and even sweepers as directors and registered with the ROC and a PAN card is obtained. These companies then apply for shares of the companies to which the money has to be diverted. The directors and shareholders are the same in most of these companies.
Around 22 bogus companies mostly based in Kolkata and a few in Mumbai, Rajkot, Bengaluru, Delhi and Tamil Nadu had invested about Rs 195.7 crore in Jagathi Publication during 2008-2010 at a premium of Rs 350 per share.
The CBI is continuing its investigation into the illegal assets case of YS Jagan.