CBI arrests Jaganmohan Reddy

HYDERABAD: YSR Congress chief Jaganmohan Reddy, who made a stunning rise in politics, was on Sunday arrested by the CBI in a disproportionate assets case, that can well be a turning point in Andhra Pradesh which is soon to witness bypolls to 18 Assembly and one Lok Sabha seats.


After three days of grilling, CBI arrested 39-year-old Jagan charging him under Sections 120-B (criminal conspiracy), 420 (cheating), 409 (criminal breach of trust) and 477A (falsification of accounts) of the Indian Penal Code and Section 13 of the Prevention of Corruption Act.


Amid high drama outside the Dilkusha guest house, where Jagan was questioned for nearly nine hours today, his mother, YS Vijaya, and supporters staged a dharna shortly after he was taken into CBI custody.


"CBI arrested him at 7.15 PM," CBI spokesperson said.



"I will fight this battle legally in the courts and I am confident of a positive outcome," said Jagan after his arrest.


The rebel Congress MP said he will "not bow down" to the "political games" being played by vested interests in Congress and the Telegu Desam Party.


Anticipating an emotional outpouring by his supporters, Jagan asked his party leaders like Vasi Reddy to communicate a special message to the cadre to maintain peace and remain calm at all costs.


"This is the need of the hour especially in view of the upcoming bypolls" he said.


Jagan, who is likely to be kept overnight at the guest house on the high security Raj Bhavan Road, will be produced in court tomorrow.


The Kadapa MP was accused of securing heavy investments, running into hundreds of crores of rupees, into his business ventures as a quid pro quo to the favours doled out by his late father as Chief Minister in the form of land allotments for so-called SEZs and other industrial ventures.


The CBI has so far filed three charge-sheets in the case, naming Jagan as the Accused No.1 while his family auditor V Vijayasai Reddy, several industrialists, bureaucrats and business houses were named as co-accused.


Sai Reddy was the first to be arrested in the case while state Excise Minister Mopidevi Venkata Ramana, industrialist Nimmagadda Prasad and Central services officer K V Brahmananda Reddy were arrested later in connection with the case.


Jagan’s mother Vijaya, an MLA, said his arrest was an act of "political vendetta" by the Congress


A high alert has been sounded across Andhra Pradesh to avert possible breakdown of law and order.


Heavy police deployment was in place in Hyderabad, Vijayawada, Visakhapatnam, Kadapa and major places in the state and tens of YSR Congress workers were taken into preventive custody at different places, police sources said.


MLC Konda Murali was placed under house-arrest in Warangal even as the YSR Congress leaders appealed to their workers and YSR supporters to observe restraint and remain peaceful.


"Let us organise protests in a peaceful and Gandhian manner," Congress rebel MP Sabbam Hari, a close aide of Jagan, told party supporters.


Till late in the night, no untoward incident was reported but the State Road Transport Corporation suspended its bus services in almost all the districts as a precautionary measure.


Jagan’s arrest, which was anticipated in the last few days after the High Court rejected his anticipatory bail plea, is expected to have a bearing on the June 12 by-elections as the YSR Congress hopes to win voters’ sympathy by projecting it as a conspiracy of the ruling Congress in concert with the Telugu Desam Party.


If he is not granted bail, Jagan will have no chance to campaign for his party candidates but his mother has been asked to be ready to take lead the campaign.


"For the past two and a half years, they (Congress leadership) have been targeting Jagan and harassing him no end.


"God is watching everything from above and people are the ultimate judges,” an emotional Vijaya said.


Agency officials said the Jagan was questioned for three consecutive days and his answers to certain investments made by a few companies to Sakshi television and Jagriti publications, owned by him, were not convincing.


CBI officials said Jagan was arrested for allegedly amassing assets disproportionate to his known sources of income.


Some routing of funds have been detected from tax havens like Mauritius and Isle of Man, indicating that there were quid pro quo investments in his TV channel and publication by some companies which were given land in the much sought after Andhra Pradesh Industrial Development Park, they said.


Hyderabad police have clamped prohibitory orders under Sec.144 CrPC in the city, besides heavy deployment of security personnel on the road leading to the guest house.