"Under the guise of buying shares, they have paid kickbacks to Jagan," alleges TDP President N. Chandrababu Naidu. "Otherwise, how else can Jagati Publications allot shares at such high premium within months of incorporation?"
In 2008, auditing firm Deloitte estimated the worth of the publications, which owns the powerful 26-edition Telugu newspaper chain Sakshi with a total circulation of 12 lakh copies, at Rs 3,500 crore. It is odd that the balance sheets of 14 companies which invested Rs 42.56 crore in 2007 and 2008 in Jagati show an accumulated loss of Rs 68.95 lakh.
The main ones - Stocknet International and Artillegence Bio Innovation-are listed on the Bombay Stock Exchange and the other 12 are shareholders in the 2 listed companies ......their total accumulated loss (net worth)is nearly 70 lakhs yet they had 45 crores to invest in Jaati Publications (owner of Sakshi newspapers and Sakshi channel )
These include Delton Exim Pvt. Ltd, Kirti Electro Systems, Bay Inland Finance, Bhaskar Fund Management Ltd, Cliftons Pearson Export and Agencies Ltd, Ganga Builders Ltd, Ispat Sheets Ltd, Gromore Fund Management Company Ltd, New Outlook Securities, Super Finance Ltd, Shakti Ispat Production Pvt. Ltd and Shivalaxmi Exports Ltd.
Interestinly Laffan software and Conrad Telefilms 2 of the 4 Assam based companies banned by SEBI from accessing the market also held a stake in artelligence bio in 2008
The bank accounts of these companies are in the Gol Park branch of HDFC Bank and the Baliganj branch of the South Indian Bank Ltd in Kolkata.
Several of these firms have been or are being investigated by the Securities and Exchange Board of India for unfair trade practices and fraud.
“We have also seized several mobile SIM cards found in the possession of corporate officials of Jagati publications besides that of Bharati Cements and Hetero Drugs,” said a source in the CBI.
V V Lakshminarayana, the joint director of the CBI, heading the investigations said the search operations might last a few more days as they were yet to question officials of several other companies involved with the Y S Jagan and EMAAR deals.
The CBI continued raids on the offices of a mining company at Bayyaram in Khammam district and also that of Harita Fertilizers in Nalgonda town belonging to Ravindranath Reddy, a cousin of YSR.
As the CBI drive continued for the second day at the offices of Jagan’s homes in Kadapa, Pulivendula and also offices at Mumbai and Delhi, advocates of Jagan made a vain bid to procure a copy of the FIR filed in the court.