FIR against YSRCP leaders claims ports firm was acquired illegally at Jagan Mohan Reddy’s behest

The Andhra Pradesh Crime Investigation Department has filed a first information report against three persons based on a complaint by Kakinada Seaports Limited’s chairperson that the company was forcibly acquired at the behest of former Chief Minister YS Jagan Mohan Reddy, The Indian Express reported.

The three people named in the FIR are YSR Congress Party’s Rajya Sabha MP V Vijayasai Reddy, YV Vikranth Reddy and P Sarath Chandra Reddy, the director of Aurobindo Pharma.

YV Vikranth Reddy is the son of the party MP YV Subba Reddy. P Sarath Chandra Reddy is the son-in-law of V Vijayasai Reddy.

Two companies – PKF Sridhar and Santhanam LLP and Aurobindo Realty and Infrastructure Private Limited – have also been named in the FIR.

The complaint was filed by Karnati Venkateswara Rao, the chairman and managing director of Kakinada Seaports Limited, on Monday.

Rao alleged that 40% of Kakinada Seaports Limited, worth Rs 2,500 crore, was forcibly acquired for Rs 494 crore through coercion and intimidation.

He also alleged that 49% of the Kakinada Special Economic Zone, valued at Rs 400 crore, had been forcibly acquired for Rs 12 crore. This was even as a multinational conglomerate had offered Rs 400 crore for the deal.

“This entire operation was planned and conducted to usurp my shareholding in KSPL and Kakinada SEZ and transfer the shares to Aurobindo group,” The Indian Express quoted Rao as alleging in his complaint. “They claimed that KSPL owed Rs 965.65 crore to the Government of Andhra Pradesh as KSPL had suppressed gross revenue, which is false, and threatened to file cases.”

Aurobindo Pharma said on Wednesday that the company or its subsidiaries “are in no way connected with the ownership or operations of Kakinada Seaports Limited and Kakinada SEZ Limited including Auro Infra Private Limited”.

YSR Congress Party leader Kakani Govardhan Reddy described the allegations as political vendetta.

“It is clear this is part of a political vendetta... part of a game being played by Chief Minister Chandrababu Naidu,” NDTV quoted the party leader as saying. “If they [Aurobindo Realty] wanted to acquire [the shares], they could have acquired the entire stake and taken control of the port. Why only a partial stake?”

Kakani Govardhan Reddy also asked why Rao had waited nearly five years before filing the complaint.

Rao told The Indian Express that he was afraid of filing a complaint earlier while Jagan Mohan Reddy was the chief minister.

The YSR Congress Party lost the Assembly elections in June and made way for the Naidu-led Telugu Desam Party government.

“My complaint would not have been taken, I would have been harassed, and there would have been no chance of getting any justice,” Rao alleged. “I am emboldened now that others who have faced similar situations are lodging complaints.”

Rao alleged: “Vikranth claimed that it was not himself but Andhra CM [at the time] Jagan Mohan Reddy who was acquiring the shares. I tried to contact the then CM but he did not meet despite best efforts.”

The Kakinada Seaports Limited chairperson said that the alleged coercion started with the insinuation that the company had suppressed its gross revenue and deprived the state government of Rs 1,000 crore between 2015 and 2019.

Rao claimed that the company had stopped receiving cooperation from the directors of the Andhra Pradesh Maritime Board in conducting operations after the YSR Congress Party came to power in 2019.

He further alleged: “I tried to explain that there were no irregularities and that auditors had fabricated records. I was told that if the state government raises the Rs 1,000 crore demand, KSPL would be in deep trouble. In lieu of that, I was asked to part with my 50% stake in KSPL and 48.74% stake in Kakinada SEZ…”

Rao said that when he protested, he was warned by YV Vikranth Reddy that criminal cases would be filed against him and his family members, The Times of India reported.