The CBI had already completed a preliminary investigation on the case after a court directive and will embark on a full-powered probe into the case involving Jagan and his associates. The investigative agency also plans to book a criminal case and file a case under the Indian Penal Code, Prevention of Corruption Act and Prevention of Money Laundering Act as directed by the court.
Sources have revealed that the CBI may constitute a multi-disciplinary investigation team to probe the case in various levels similar to the one they did for the Satyam fraud. This is because the fraud involves alleged money laundering, hawala transactions and cash stashed in tax havens abroad. The team is likely to contain officials from the enforcement directorate, income tax and other agencies.
The CBI has already questioned as many as 25 companies who are alleged to have unfairly benefited from their association with Jagan. These companies invested heavily in Jagan's firms for the favours they received through YS Rajasekhar Reddy, who was the then CM of Andhra Pradesh.
During the Kadapa by-polls, Jagan had declared assets worth Rs.365 crore giving him the distinction of being the richest MP in India. His rise was alos phenomenal considering that his assets in 2009 was worth only Rs.77 crore.
The complaint on Jagan's assets was filed by Textiles Minister P. Shankar Rao who alleged that Jagan was worth a mere Rs.11 lakh before 2004 and shot to being worth Rs.43,000 crore now.
The court had ordered the probe after it was convinced that the companies had invested in return of the favours it received during Rajasekhar Reddy's regime as Chief Minister. The division bench of the court also cited that the growth of Jagan's companies were so phenomenal that the shares of the companies had increased by upto 35 times.
Legal experts have stated that Jagan is likely to be arrested. Counsel of Telugu Desam Party (TDP) leader K Yerran Naidu, D. Srinivas who is also one of the petitioners of the case against Jagan ,has been quoted as saying, "If the investigating agency feels the accused may tamper with the evidence, it may arrest them during the course of investigations."