The CBI has established the link between Government GOs and the money transfered to Jagan cos. Every time a GO was released by the Department of Mines and Geology, headed by the then Mines Minister P.Sabitha Indra Reddy, the cement companies that were allotted quarries transferred funds to the companies owned by Kadapa MP Y.S.Jaganmohan Reddy. The CBI, which is investigating into the assets case of Mr.Jaganmohan Reddy saw an uncanny link in the date of issuance of GOs and transfer of funds soon after, into the accounts of companies owned by the Kadapa MP.

It stated that crores of rupees were transferred by those who benefited by the GOs into the accounts of  Jaganmohan Reddy's companies as investments on a quid pro quo basis. In this regard, the investigation agency officials questioned Home Minister Sabitha at her residence on Thursday evening. This was the second time the Home Minister was questioned by the CBI after she was examined in the Obulapuram Mining case. The CBI officials reportedly sought clarifications from the Home Minister on several GOs issued during her tenure as the Mines Minister. These relate to allotment of limestone quarries to Penna, Walchand and other cement companies and pointed out certain lapses in business rules. The Home Minister reportedly told the agency that none brought any pressure on her to issue the GOs and that she merely accepted the proposals submitted by her department.