A Long-Standing Case Resurfaces
In a significant development in a long-pending corruption probe, the Enforcement Directorate (ED) has provisionally attached assets worth over ₹800 crore in connection with a 14-year-old money laundering case involving former Andhra Pradesh Chief Minister and YSR Congress Party chief YS Jagan Mohan Reddy. This includes shares worth ₹27.5 crore belonging to Reddy and land and property holdings of Dalmia Cements (Bharat) Limited (DCBL) valued at ₹793.3 crore.
The move follows an FIR filed by the Central Bureau of Investigation (CBI) in 2011 and marks one of the largest enforcement actions against a prominent political leader in recent years.
The Quid Pro Quo Allegations
The origins of the case lie in allegations of quid pro quo investments during Reddy’s earlier business ventures before becoming chief minister. The CBI had accused Dalmia Cements of investing ₹95 crore into Bharathi Cement Corporation Private Limited—one of Reddy’s companies—allegedly in exchange for favourable administrative benefits.
In return for the investment, the Andhra Pradesh government reportedly awarded a 407-hectare mining lease in Kadapa district to DCBL, a move suspected to be a direct result of this financial exchange.
The Hawala Angle: Tracing Illicit Payments
The ED’s investigation, aligned with the CBI’s findings, unearthed that part of the illicit financial arrangement involved hawala transactions—unofficial channels often used for untraceable money transfers.
According to the ED, ₹55 crore was paid to Reddy in cash through hawala methods, and plans were in place to transfer ₹139 crore in total via such channels. A significant piece of this transaction included the sale of shares in Raghuram Cements Ltd to French firm PARFICIM for ₹135 crore, where cash kickbacks allegedly made their way to Reddy.
The seriousness of the charges is reflected in the 2013 CBI chargesheet filed under various provisions of the Prevention of Corruption Act and the Indian Penal Code.
Assets Attached: From Shares to Real Estate
On April 15, 2025, Dalmia Cements informed the Securities and Exchange Board of India (SEBI) that it had received the ED’s attachment order. The provisional attachment includes:
· YS Jagan Mohan Reddy’s shares worth ₹27.5 crore in:
1. Carmel Asia Holdings Limited
2. Saraswati Power and Industries Private Limited
3. Harsha Firm
· DCBL’s land holdings worth ₹377.2 crore, though the company places the total attached asset value at ₹793.3 crore.
The scale and specificity of the attachments underscore the ED’s belief in a clear money trail linking corporate favors to political influence.
Legal and Political Ramifications
Though Reddy is no longer in office, he remains a major political figure in Andhra Pradesh. The timing of the ED’s action—just ahead of crucial electoral cycles—adds a political dimension to the legal one. However, the agencies maintain that their actions are strictly evidence-driven.
The DCBL, while acknowledging the attachment, has not issued any public challenge to the ED order so far.
A Delayed but Decisive Enforcement Move
After over a decade of investigation, the ED’s action marks a significant step forward in holding high-profile individuals accountable in economic offenses. With assets now provisionally attached, the focus shifts to judicial proceedings and potential recovery or conviction.
For Jagan Mohan Reddy and Dalmia Cements, the road ahead may be long and legally fraught—but for Indian investigative agencies, this marks a high-stakes assertion of financial accountability in political-business dealings.
(With inputs from agencies)
