Jagan - Jagati - Sakshi - Income Tax - CBI
JAGAN Mohan Reddy - Member of Lok Sabha from Kadapa in Andhra Pradesh - won the election with a huge majority of over 5 Lakh votes against formidable opponents, one of whom is his chief adviser now. Jagan Mohan Reddy whose father YSR Reddy was the Chief Minister of Andhra Pradesh for more than five years, is said to have built up a financial empire of about one lakh Crores. Jagan who was the prince, is today in jail facing charges of Criminal conspiracy, Cheating, Forgery of documents, Criminal breach of trust and corruption. Jagan by his own declaration is one of the richest MPs in India with a net worth of over 350 Crores.
Jagan is also a Press Baron being the promoter of Jagati Publications, which runs SAKSHI a Telugu Newspaper and a TV Channel. One of the charges of CBI against Jagan is that he got huge investments in Jagati as a quid pro quo - the Government had allotted thousands of acres of land to SEZ units and investors at very low prices and for the favour shown, these investors were only too glad to invest good money in loss making Jagati.
Interestingly, the Income Tax Department investigated this issue long ago. The Income Tax Assessing officer found that Jagan and his friends who held 90% of the shares of Jagati contributed only 20% of the capital. The AO could not understand the logic of leading financial wizards investing huge amounts of money in a loss making company. So, he refused to consider it as share premium but took it as income of the Company. A demand of Rs. 122 Crores was slapped on Jagati. Of this, Jagati paid Rs. 28 Lakhs. The ITAT, Hyderabad Bench in S.A. No. 03/Hyd/2012 M/s. Jagati Publications Ltd vs ACIT Hyderabad Circle-2(1), granted stay subject to a deposit of Rs. 12 Crores in six instalments.
This issue is pending in the ITAT and Jagan is in jail.