A division bench of AP High Court on 12 July ordered CBI to conduct a preliminary inquiry in to the properties and businesses of YSR Congress chief and Kadapa MP YS Jaganmohan Reddy. The court issued these orders while dealing with three writ petitions, including a letter-cum-petition filed by Congress MLA and state Textiles Minister, P Shankar Rao, and separate petitions filed by Telugu Desam Party leaders. The court asked theCBI to submit its report within two weeks.

The complaints alleged that Jagan acquired assets worth hundreds of crores from various companies and individuals as a quid-pro-quo for the land allotted and licences granted to them at cheaper prices for various activities when his father YS Rajasekhara Reddy was chief minister between 2004 and 2009. "Following the high court directive, a preliminary investigation is going on and 24 investment companies, which invested in Jaganmohan's businesses, were issued notices and almost all of them have responded to it. Now the preliminary probe report will be submitted before the court on July 26," CBI Joint Director (Hyderabad Zone) VV Lakshmi Narayana told.