The First Information Report (FIR) filed against Kadapa MP YS Jaganmohan Reddy says that shareholders of Jagathi Publications are alleged to have subscribed to the shares at a uniform premium of Rs 350/share even before the company began commercial operations.
The FIR details of the quid pro quo for shareholders who invested in Jagan’s Jagathi Publications :
The Nimmagadda Prasad group of companies, which invested Rs 100 crore in Jagathi Publications, was allotted 15,000 acres in Prakasam district for the Vanpic project in violation of all norms.
The Hetero Group of companies was allotted 240 acres for an SEZ at Nakkapalli in Visakhapatnam and another SEZ at Jedcherla in Mahbubnagar.
Aurobindo pharma group was allotted an SEZ at Nakkapalli as a quid pro quo for investing Rs 10 crore
Pioneer Infrastructure Holding ltd, which invested Rs 20 crore, was given various contracts with favourable terms. Pioneer is owned by P Pratap Reddy, state Congress treasurer and close confidant of YSR.
The Penna Cements group, also owned by Pratap, invested Rs 45 crore and Rs 23 crore in Carmel Asia Holdings, for which it was given limestone mining lease over 304.74 hectares in Kurnool district, as well as another limestone licence on 822.13 acres in Ranga Reddy district.