Janardhan Reddy was arrested and booked by CBI over his alleged involvement in illegal mining activities in and around Bellary and Andhra Pradesh. Reddy has been cooling his heels for three months under the custody of CBI at Hyderabad's Chanchalguda Jail.
Unfortunately, even before celebrating the resounding victory of his close aide B Sriramulu in Bellary bypoll, who knocked down the BJP party to the ground, Reddy received the worrisome news about his long stay in jail.
Talking to Bangalore Mirror, a senior CBI official said, "There is a clear case of money laundering against Reddys." According to the investigating agency sources, Reddy launched a single-dollar investment fund in Hong Kong under the name JLR - wherein J stands for 'Janardhan', L for his wife's name 'Lakshmi' and R for 'Reddy'.
The Reddys allegedly traded iron ore to various Chinese firms via JLR Trading Company, though they had family-owned Obulapuram mining company and Anantapur Mining Company.
The alleged trading happened like this - Reddys billed the JLR firm at a lower price and the latter in turn charged Chinese firms at an actual market price. Thus, they made less profit in India and good money abroad, Hong Kong. Later, the Hong Kong profits were routed to tax haven nations like, Malaysia, Virginia Islands and Mauritius.
Then, the Reddys brought the tax evaded black money back to India in the form of FDI in various firms owned by the former directly or indirectly.
Thus, the Reddy and company caused a huge loss to the exchequer, by evading tax norms and in biding, and got their black money converted into white through FDI.
At present, ED sleuths are taking cognizance on Reddy's company's financial transactions from the documents that were procured by CBI during raids at Reddy's places.
After the completion of examination of papers, a case under Provision of Money Laundering Act will be filed against Reddy, family members and close aides who are believed to have possibly involved in the case.
If a case under PMLA is filed against some one, s/he has a bare minimum chance of getting bail, until the case is settled. A former Jharkhand minister, Madhu Koda, who was arrested and jailed in a similar case, is still languishing under the custody since last two years.
Similarly, it seems near impossible for Janardhan Reddy to get bail if he is booked under PMLA.