Centre should probe 'money laundering' by AP CM's son: Naidu

TDP president and Leader of the Opposition in Andhra Pradesh Assembly N Chandrababu Naidu demanded on Monday that the Centre order an inquiry into illegal financial transactions, including the "money laundering" in 14 "benami" companies promoted by chief minister YS Rajasekhara Reddy's son Jaganmohan Reddy.

He wanted a judicial probe by a sitting judge into the affairs of Satyam Computers, Maytas Infra, Maytas Properties, the 14 companies promoted by Jaganmohan Reddy and also Heritage Foods owned by his (Naidu's) wife and family.

Initiating a heated debate on the Satyam scandal in the assembly here, Naidu launched a frontal attack on the chief minister alleging that the latter amassed crores of rupees through illicit means, violating all relevant laws in the process.

"The SEBI rules were violated. FEMA, FERA and the RBI Acts have been violated and even the Income Tax Act was breached in the functioning of the 14 companies promoted by the chief minister's son. The government of India should immediately conduct an inqury into the gross financial irregularities," Chandrababu said. 

Drawing a parellel between YS Rajasekhara Reddy and Satyam founder B Ramalinga Raju, the TDP chief urged the chief minister to come out with a "self-confession" of his guilt like Raju.

As the Congress MLAs shouted "Heritage, Heritage" in reference to the alleged financial irregularities in the company owned by Naidu's family, the Opposition leader hit back daring the government to conduct "whatever inquiry you want" into the Heritage affairs.

Listing out the "benami" companies floated by Jaganmohan Reddy with Sandur Power as the flagship company, Chandrababu said all the ill-gotten wealth of Rajasekhara Reddy was pumped into these companies through the Mauritius channel.

"All the black money and sleaze money earned by Rajasekhara Reddy have been put in these companies. This is nothing but money laundering," he alleged.

"How can a company with its share value of just 40 paise, invest Rs 30 crore in another company?" the TDP leader wondered referring to the investments in one of Jagan's firms.

Without investing a single rupee, Rajasekhara Reddy and his family amassed Rs 600 crore through dubious deals, Chandrababu charged. 

Referring to the investments made in Sakshi newspaper and Indira Television promoted by Jaganmohan Reddy, Chandrababu said foreign direct investment rules were grossly violated as 69.12 and 51 per cent stakes were picked up respectively by one Caramel Asia Limited, a benami floated by the CM's family.

He pointed out that foreign investments over and above a certain percentage were not directly permitted in the media ventures. "This is nothing but a gross violation of all relevant laws," he added.

Incidentally, it was the defamed PricewaterhouseCoopers that certified Sakshi's circulation as 12 lakh copies a day, Chandrababu said, adding that others who invested in the newspaper had secured undue favours from the Rajasekhara Reddy government.

He demanded a thorough inquiry into the affairs of these companies.