Y. S. Jaganmohan Reddy, chairman of Jagati Publications and son of Chief Minister Y. S. Rajasekhara Reddy, refuted the charges levelled by Telugu Desam president N. Chandrababu Naidu and other opposition leaders that investments in the power project and publications owned by him were illegal.In his first reaction to the criticism of the grand alliance over the investments in his firms, he dared the opposition parties to prove their allegations against these companies.
He expressed willingness to submit himself to an inquiry by Mr. Naidu and other leaders and offered to extend complete cooperation for such a probe.
Mr. Jaganmohan Reddy on Thursday clarified doubts raised over Sandur Power Corporation Limited (SPCL), Raghuram Cements, rechristened Bharati Cements, and Jagati Publications, publishers of Sakshi Telugu daily. Decrying the campaign against him, he said it was nothing short of ‘character assassination’ and ‘hitting below the belt’.
Despite clarifications he had issued from time to time, the Opposition parties, particularly the Telugu Desam Party, were spreading falsehoods. Referring to the charges against SPCL, which has an installed capacity of 37.5 MW, he said the company was started in 2001 with an investment of Rs. 30 crore of which Rs 23 crore was borrowed from financial institutions.
He said that senior officials of the UTI Securities recommended the management of ‘2I’ Capital to take 32.7 per cent stake in SPCL on the basis of its valuation and turnover.
As the SPCL achieved a breakeven and even made profits, it acquired one more company for Rs. 180 crore by taking a loan of Rs. 160 crore.
He pointed out that Nimmagadda Prasad of Matrix had purchased 21.42 lakh shares at Rs 140 each in SPCL and it was not true that a sum of Rs. 675 crore was mobilised by selling over one crore shares.
Responding to charges against Bharati Cements, he said the unit was set up to tap limestone reserves in Kadapa for which India Cements, Dalmia Cements and other majors were roped in.
About allegations of huge investments in Sakshi daily, he took a dig at two media houses that launched a vicious campaign against him with the support of the TDP chief.
“Since the day we launched the Telugu daily, Eenadu and Andhra Jyothi are trying to project us in bad light,” he pointed out.
