Indu chief in CBI crosshairs

HYDERABAD: Close on the heels of arresting Nimmagadda Prasad , the CBI is investigating Syam Prasad Reddy, another big industrialist from the city whose business registered phenomenal growth during 2005-10 . The CBI has already quizzed Syam Prasad Reddy on his links with YSR Congress president Jaganmohan Reddy and his companies and might close in on him, agency sources told TOI. Indukuri Syam Prasad Reddy is chairman of Indu Projects, a company that dabbles in the real estate sector. “Among the factors that drew the CBI’s attention was that Indu Projects registered a phenomenal turnover of Rs 2,000 crore in a short span of time. Significantly, during the period YSR was chief minister, Indu Projects registered a growth of 100% every year. Syam Prasad Reddy is being investigated for his links with Jagan and possible quid pro quo investments in his companies,” CBI sources told TOI. The CBI is in the process of establishing that Syam Prasad Reddy made huge investments in Jagati Publications (Sakshi newspaper) and Indira TV (Sakshi TV) and in return, got benefits from the YSR regime in the form of a 150-acre IT and ITeS SEZ at Shamshabad, 8,800 acres of land at Anantapur for Lepakshi Knowledge Hub as well as contracts for several irrigation projects.He was also given land by the YSR regime for his various real estate projects in and around Hyderabad like Indu Fortunis Fields, Indu Aranya and Indu City.Claiming violations in Lepakshi Knowledge Hub, the CBI says that Syam Prasad Reddy pledged 4,397 acres of the land to various banks and raised a loan of Rs 790 crore in total violation of the purpose for which the land was allotted . APIIC has already recommended to the state government that the land allotted to Indu Projects be taken back.Further, the CBI claims to have gathered information that Indu projects received huge funds from Mauritius and that the entities there hold stakes in Syam Prasad’s company. The annual return for the year 2011 submitted by Indu Projects states that out of the total capital , 9.39% came from foreign holdings and another 9.84% from venture capital funds. Interestingly , Indu Projects allotted 24,26,576 preferential shares to CSIRE Investment Ltd, 48,53,152 preferential shares to RECP IV Atria Investors Ltd and 48,53, 152 shares to Lodestar Investments Ltd, all based in Mauritius.In turn, these Mauritius companies hold huge number of shares in Indu Projects including 11,04,225 by CSIRE, 22,08,449 shares by RECP IV Atria and another identical 22,08,449 by Lodestar Investments. Besides, other Mauritius firms too like Maple Holdings Ltd (24,48,580 shares), Citigroup Venture capital International Mauritius Ltd (1,39,03,720 shares) and Almal Capital Mauritius Ltd (25,36,000 shares) have stakes in Indu Projects.The CBI grilled Syam Prasad Reddy on Tuesday and recorded his statement. CBI sources said he would be called again to explain crucial issues in the Jagan assets case. “Syam Prasad Reddy was one of the biggest beneficiaries of the YSR regime in the form of the quid pro quo arrangement,” CBI sources asserted.