Hyderabad: A day after the Home Minister P. Sabita Indra Reddy was named in the charge sheet by CBI, political activity shifted to top gear with some ministers expressing their solidarity with her and Chief Minister holding confabulations with his cabinet colleagues.
Sabita named as accused by CBI
The CBI on Monday named home minister Sabita Indra Reddy as an accused in its fifth chargesheet in the Y.S. Jagan Mohan Reddy illegal investments case.
The chargesheet pertains to the allotment of 407 hectares of land in Kadapa district to Eshwar Cements for limestone mining. It says most of the land was later re-allocated to Dalmia Cements, which invested in Jagan Mohan Reddy’s Bharati Cements.
The chargesheet says Dalmia Cements purchased shares, each worth Rs 110, at an exaggerated premium of Rs 1,440 in Bharati Cements and invested Rs 95 crore in the firm. The CBI alleges this was a quid pro quo deal.
Indira Reddy has been named for the role she played in the alleged deal, when she was the mines and minerals minister in the YSR government.
The CBI alleged the land was first allocated to Jaya Cements — accused in the illegal mining case involving former Karnataka minister Gali Janardhan Reddy — and later cancelled.
Subsequently, it was given to Eshwar Cements after the firm allegedly wrote to the government saying that Dalmia Cements was its sister concern, and sought transfer of a part of the land to the firm. The CBI says Indra Reddy, despite knowing this was untrue, transferred the land to Dalmia Cements.
Home minister Sabita Indra Reddy on Tuesday submitted her resignation letter from the Cabinet after the CBI named her as an accused in the Y.S. Jagan Mohan Reddy illegal investments case.
She called on Chief Minister N. Kiran Kumar Reddy in the evening and handed over the letter. The Chief Minister, and PCC president Botsa Satyanarayana, who spoke with the minister, however, suggested that she “wait and watch” the situation before taking a final decision.
Sources told this newspaper that the Chief Minister reposed confidence in the minister who, according to him, cleared files relating to transfer of mines from one cement company to another in a “routine” manner.
The top leaders were said to have stated that the practice was common, and that hundreds of similar applications were lying with the government.
Indra Reddy explained that she had only followed the procedures and never benefited from any of the decisions. Maintaining that she was holding a sensitive portfolio, the minister said she wanted to resign on moral grounds.
The PCC chief later told the media that she had been asked to wait till the chargesheet was handed over and a thorough study done.
Indra Reddy is the third member of the Kiran Kumar Reddy Cabinet to figure as accused in the Jagan Mohan Reddy cases after Mopidevi Venkata Ramana and Dharmana Prasada Rao.
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