Jagan, Emaar Cases: ED Files FIR

Based on the FIR issued by the CBI, the Enforcement Directorate (ED) on Tuesday registered Enforcement Case Information Reports (ECIR), the equivalent of the police First Information Report (FIR), in the Jagan assets and APIIC-Emaar cases. This would enable the ED to investigate the accused under the Prevention of Money Laundering Act. It is however not known whether all the accused in the CBI FIR have been named in the ECIR or whether some will not be investigated for money laundering.

It is understood the ECIRs were approved by the ED headquarters in New Delhi before being registered on Tuesday. The Hyderabad wing of the ED had sent the ECIRs to New Delhi for approval a week ago. Apart from the money-laundering charges, the accused in the ECIRs can also be booked under Foreign Exchange Management Act (FEMA). There are 74 accused individuals and entities in the Jagan assets case FIR filed by CBI and this includes Y S Jaganmohan Reddy. There are seven accused in the APIIC-Emaar case.

Meanwhile, the state government is all set to create a nodal cell to coordinate with the CBI in the two cases which is likely to be headed by principal secretary, general administration department (GAD), Ajay Mishra. A decision to this effect was taken on Tuesday after CBI joint director V V Lakshminarayana called on chief secretary and sought files pertaining to the two cases from the state government. Since the files related to at least seven departments including revenue, irrigation, industries, infrastructure, IT & communication and APIIC, the CBI wanted a nodal cell to be constituted as it would make their investigation an easier task.

On questioning about arrests, the CBI joint director V V Laxminarayana was evasive. However, CBI sources said the joint director would require a clearance from New Delhi before effecting any arrests including that of Jaganmohan Reddy. "There is a process to the investigation which begins with the registration of the FIR, search and seizure operation and scrutiny of the documents before the issue of arrests can be taken up. Since there are scores of documents to be scrutinized in both the cases, this process itself will take some time," a CBI official said.

The Enforcement Directorate's entry in the scene means seizure of all properties of the accused, including bank accounts, making it difficult for the accused firms to continue their businesses. Once an FIR is issued, it's mandatory for the Enforcement Directorate to file a chargesheet within 150 days. On conviction, the accused may get a minimum sentence of three years and a maximum of seven years with a fine of 5 lakh.