Y. S. Jagan Mohan Reddy

Y.S. Jagan Mohan Reddy వై.ఎస్.జగన్మోహన రెడ్డి
Member of Parliament
In office 13 May 2011 - present
Preceded by	Y. S. Vivekananda Reddy
Constituency	Kadapa
Personal details
Born	(1972-12-21) 21 December 1972 Pulivendula village of Kadapa District, Andhra Pradesh
Spouse	Y S Bharati
Children	2 Daughters.
Residence	Hyderabad/Bangalore

Yeduguri Sandinti Jaganmohan Reddy (Telugu: యెడుగూరి సందింటి జగన్మోహన రెడ్డి)(December 21, 1972 - ), also called Jagan by his admirers,is an Indian politician and is a member of the Parliament of India from Kadapa constituency. .He has been arrested by the Central Bureau of Investigation on 27th May 2012 at 7.20PM IST, under IPC sections 120B, 409, 420, 177A, 13.1.d & 13E YSR Congress alleges that Jagan is being politically victimized and the CBI is acting on behest of the Congress.He is the son of the former Andhra Pradesh chief minister Y.S. Rajasekhara Reddy.

Personal life

Jaganmohan Reddy was born December 21, 1972 in Pulivendula village of Kadapa District, Andhra Pradesh. He received his early education from Pulivendula and Hyderabad Public School. He founded the daily Telugu language newspaper Sakshi and the television channel Sakshi TV. He is the chief promoter of Bharathi Cements.Reddy is a Protestant Christian. ().

Political life

He started his political career by campaigning for Congress party in 2004 elections in Kadapa District, and in the 2009 elections he was elected as member of Parliament from Kadapa constituency as a member of the Indian National Congress.

However, his political career took a new innings with the demise of his father, Chief Minister Y.S. Rajasekhara Reddy ("YSR"). His relationship with the Indian National Congress (INC) continuously deteriorated after his father's death

Odarpu yatra

Six months after his father's death, he began an odarpu yatra (condolence tour) as promised earlier to go and meet the families of those alleged to have either committed suicide or suffered ill health on the news of his father's death. The Congress party's central leadership directed him to call off his odarpu yatra, and order which he defied leading to a fallout between the high command and himself. He went ahead with the yatra, stating that it was a personal matter.

2011 By-election

Jagan as a president of YSR Congress faced by-election from the Kadapa constituency and won by the biggest margin in Indian history with a majority of 545,043 votes.

Fallout with Congress

On November 29, 2010, he resigned, after a fallout with the Congress party high command. He announced on 7 December 2010 from Pulivendula that he would be starting a new party within 45 days. In February, 2011, he took over a party which had existed on paper only since the prior July, and was officially recognized on February 16 as president of the YSR Congress Party.

Corruption claims

It has repeatedly been alleged that while his father was Chief Minister, he amassed wealth by such tactics as pressuring companies to "invest" in his businesses in return for various favours from his father's government. On August 10, 2011, the Andhra Pradesh High Court ordered a thorou­gh investigation by the Central Bureau of Investigation into these allegations, in the wake of two preliminary reports submitted by the CBI on petitions filed by senior state Congress minister P. Shankar Rao and Telugu Desam Party leader Yerran Naidu, and affidavits filed by certain investors. The CBI and Income Tax officials launched country-wide searches on his offices and residences on 18 August 2011, following the High Court Order. In an illegal asset case linked to Y S Reddy, Andhra excise minister Mopidevi Venkataramna was arrested on 24th May 2012.He is the named prime accused of Central Bureau of Investigation in a chargesheet in a disproportionate assets case against him.

Income Tax Department Investigation

Examining the returns filed by Jagati Publications, which publishes the Sakshi newspaper, the income tax department realized that something was amiss. What caught the attention of the tax officers was that 90% of the equity in the company was held by Jagan and his close associates, but they had contributed only 20% of the share capital. By contrast, a few outsider shareholders held 10% of the equity, although they had contributed 80% the share capital.

This anomaly occurred, the taxmen figured out, because Jagan had been allotted shares at par value whereas the outside shareholders had been allotted equity at a premium of Rs 350 per share. The tax officials also discovered that there were a few shareholding companies, very small and virtually unknown, which had no credentials. Some of them could not be traced by the tax department when it issued notice to them, others were located at the same address, and yet other companies even had common directors.

Why had these companies and outsider shareholders invested in Jagati Publications? The taxmen had no immediate answers; they were further puzzled when they realized that there was no public listing of Jagati Publications. So the investors could not hope for any appreciation in the shares of the company in the market that would enable them to make money and recover the investments they had made. The taxmen studied the newspaper business in Andhra Pradesh and realized that there was cutthroat competition in the market. Most of the newspapers were making losses and relied heavily on advertisements, which were in short supply. This led to the conclusion that the investors had not put their money in the hope that Jagati would perform excellently in the market. This was in line with the books of accounts of Sakshi, which showed that by the end of March 2010, Jagati had totted up losses of Rs 319.84 crore. Many of the investors were big companies whose track records showed that they had great business acumen. So, they would not be foolish enough to invest in a difficult business and in a company that was in losses. Moreover, all of them had always put their investible resources in related businesses. None of them were even remotely connected to the media industry Examining the returns filed by Jagati Publications, which publishes the Sakshi newspaper, the income tax department realized that something was amiss. What caught the attention of the tax officers was that 90% of the equity in the company was held by Jagan and his close associates, but they had contributed only 20% of the share capital.

Officers of the Bangalore Central Circle under GM Belagali Commissioner and his Additonal Commissioner Dr Sibichen K Mathew who also investigated the Illegal Mining case also figured out that Jagati owned only the machinery in the press, which was subject to depreciation. The land and the buildings of the huge presses set up by Jagan were in the name of another company called Janani Infrastructure. So the investors in Jagati could not hope for an appreciation in land value that could lead to greater value of their shareholding.

So, what led these companies to invest in Jagati? Taxmen issued notices to the companies which had picked up equity in Jagati and realized from their replies that all of them had been allotted huge tracts of land and projects in Special Economic Zones (SEZs) by the YS Rajasekhara Reddy government. The taxmen came to the conclusion that it was lieu of these projects that these companies had invested in Jagati Publications. The taxmen noted in the assessment report: "The amount paid to Jagati (the assessee company) cannot be justified as share premium but as income to Jagati. And therefore the major beneficiaries were the promoters of the company (read Jagan). A demand of Rs 122 crore was slapped on Jagati Publications.

External links

• Official website