CBI Unearths Jagan, Janardhan Reddy Links

Publish Date:Sep 9, 2011

jagan janardhan reddy links, obulapuram mining company jagati publications, omc red gold rr global jagati links, gali janardhan reddy red gold jagan sakshi newspaper, red gold investments sakshi newspaper, sakshi paper r reddy executive director, jagan loyalist diwakar reddyAmidst denials by both Gali Janardhan Reddy and YS Jagan Mohan Reddy that there exists a nexus between them, the CBI has come out with certain startling facts during its investigation. The CBI has in its possession sufficient documentary evidence that shows flow of investments from Obulapuram Mining Company owned by Gali Janardhan Reddy to Jagati Publications (Sakshi Newspaper) owned by Jagan Mohan Reddy.

During investigation, the money trail in to Sakshi newspaper led the CBI to Red Gold Enterprises and RR Global Enterprises. While the Red Gold Enterprises is owned by a Jagan loyalist Diwakar Reddy, his brother R Reddy, who is the executive director of the Sakshi Telegu newspaper owned by Jagan, is also the owner of RR Global Enterprises. These two companies are alleged to be the investment link between Gali Janardhana Reddy's Obalapuram Mining Company (OMC) and Jagan's companies. Both these companies and Jagan's Jagati Publications offices share the same registration addresses.

The CBI also has the documents which show that Red Gold is a partner of OMC. According to a registered agreement, OMC was obliged to sell 50 per cent of all iron ore mined, at operational cost plus five per cent, to Red Gold. This was said to be for help in identifying deposits and getting licences and permissions. Critics have pointed out that such a consultancy being worth some Rs. 400 crore per annum is unheard of.

The CBI also says that there was an amount of Rs 90 crore which the Red Gold Enterprises had earned through mining with the help of OMC and it had invested Rs 40 crore in Jagathi Publications. There is also a trail of Rs 30 crore which can be found to be invested in Indira Television by purchasing shares of this company.