The Supreme Court on Thursday dismissed the bail petition of Yuvajana Sramika Rythu Congress Party president YS Jaganmohan Reddy in a case of disproportionate assets, saying his release could hamper probe against him.
The court observed that Jaganmohan Reddy, popularly called Jagan, son of late Andhra Pradesh chief minister YSR Reddy, was ultimate beneficiary of the alleged acts of wrong doing.
"His release will hamper the probe in the case which is of high magnitude," said the Supreme Court.
The apex court also observed: "Likelihood of tampering with evidence and influencing witnesses can't be ruled out on his release.
The apex court also cancelled the bail of Jaganmohan Reddy's auditor Vijay Sai Reddy and directed him to surrender by May 30, CBI counsel Ashok Bhan told reporters outside the Supreme Court. The court also rejected the bail plea of industrialist Nimmagadda Prasad, an accused in the case.
The court directed the Central Bureau of Investigation (CBI) to complete investigations and file charge sheet within four months. Thereafter, the three can move the court for the grant of the bail.
Jagan, a Lok Sabha member from Kadapa, was arrested by the CBI on May 27, 2012.
Vijay Sai Reddy has been given time till June 5 to surrender as his daughter's marriage is scheduled to take place May 26.
The court while rejecting the bail pleas noted that there was an enormous increase in while collar crimes, which has serious repercussions on the economy of the country.
Charge against Jaganmohan Reddy
The CBI, in its three chargesheets, alleged Jagan and his father hatched a conspiracy to defraud the government and Jagan influenced his father in doling out favours to firms that made investments in his businesses as a quid-pro-quo
Jagan has been lodged at Chanchalguda prison in Hyderabad since his arrest by the CBI in a corruption case on May 27, 2012.
Under CBI scanner
August 10, 2011: Andhra Pradesh high court directed the CBI to register a case and conduct a probe into Jagan’s alleged disproportionate assets.
A division bench comprising chief justice Nisar Ahmad Kakru and justice Vilas V Afzulpurkar issued the order after the CBI submitted its preliminary findings on two cases.
The high court had on July 12 asked the CBI to conduct a preliminary enquiry into the allegations to determine if there was sufficient evidence to order a full investigation.
It has been reported the assets were mostly acquired when Jagan’s father YS Rajasekhar Reddy (YSR) was chief minister from 2004 to 2009, when he died in a chopper crash.
Jagan’s declared assets, worth Rs 365.86 crore, are in the form of shares in various listed and unlisted companies. He had assets worth less than Rs. 10 lakh in 2004.
The court order followed a bunch of public interest petitions alleging large-scale irregularities in the investments made by several companies in firms owned by Jagan.
The petitioners alleged that black money earned through bribes and illegal gratifications were pumped into these companies in the name of investments.