Vijayasai to appear before ED in Kakinada port case

Hyderabad: YSR Congress MP V Vijayasai Reddy is set to appear before the Enforcement Directorate (ED) in Hyderabad on Monday in connection with the Kakinada Sea Port case. The ED, which summoned him, plans to interrogate Reddy regarding his alleged role in the case.The ED's Hyderabad unit issued an ECIR (Enforcement Case Information Report) based on a complaint filed by Karnati Venkateswara Rao. The complaint accuses Vijayasai, along with other individuals, of coercing the promoters of Kakinada Sea Ports Limited (KSPL) to sell their shares at a nominal value.The ED has already recorded statements from two auditors involved in the case: Y. Vikrant Reddy, a cousin of former CM YS Jagan Mohan Reddy, and officials from GMR Group.Kakinada Sea Ports Limited operates under a concession agreement with the Andhra Pradesh govt to manage the Kakinada Deep Water Port. The case centers on allegations that key stakeholders were coerced into selling their stakes under fabricated claims of financial irregularities, leading to significant financial losses for the original promoters.Revenue suppression of 1,000 crore: AuditorsAccording to the AP CID FIR, MP Vijay Sai Reddy allegedly played a central role in the acquisition of shares from KSPL under coercion. Venkateswara Rao, the complainant, stated that in May 2020, Vijayasai informed him that Vikranth Reddy would contact him about KSPL. Subsequently, Vikranth Reddy allegedly coerced Rao into parting with a significant stake in KSPL and Kakinada SEZ (KSEZ) under threats of legal action and audits.Between 2014 and 2019, auditors appointed by the then Andhra Pradesh govt conducted audits and reported irregularities in KSPL's revenue over the years. The auditors claimed a revenue suppression of Rs 1,000 crore, depriving the state of its revenue share.The complaint alleges that, using this as a pretext, Vikranth Reddy, with Vijayasai Reddy's involvement, pressured the promoters to sell 41.1% of KSPL shares and 48.7% of KSEZ shares for amounts significantly below their estimated market value. In KSPL, shares valued at over Rs 2,500 crore were allegedly sold for Rs 494 crore. Similarly, a 48% stake was reportedly transferred for Rs 12 crore. Agreements were prepared in the name of Aurobindo Realty and Infrastructure Pvt Ltd., a company linked to Sarath Chandra Reddy, son-in-law of Vijay Sai Reddy. The complainant alleges that the transactions were carried out under duress, with fabricated documents.