CBI's chargesheet names Jagan, his financial adviser V Vijay Sai Reddy, Jagati Publications, Ramky Group chairman A Ayodhya Rami Reddy, Venkat Ram Reddy and Ramky Pharma City (India) Limited (RPCIL). The court had earlier rejected CBI's proposal to book Venkat Ram Reddy under the Prevention of Corruption Act as the central agency had not got the sanction of the government.
The court had allowed CBI to prosecute him under the Indian Penal Code, mainly under section 409 (criminal breach of trust). However, the agency today filed a memo before the special CBI court, which said the sanction has been now obtained.
As the vice-chairman of Visakhapatnam Urban Development Authority in 2005, Venkat Ram Reddy allegedly approved the layout plan of Ramky Pharma for a special economic zone at Visakhapatnam by circumventing the guidelines of the master plan, the chargesheet says.
Jagan's father and the late Chief Minister Y S Rajasekhara Reddy allegedly prevailed upon Venkat Ram Reddy to approve the layout, it says. As a quid-pro-quo, Ayodhya Rami Reddy allegedly made investment of Rs 10 crore in Jagati Publications (owned by Jagan) through two companies TWC and ERES -- which were controlled by his own men, it says.