24 August,2011 09:03 AM IST | | MiD DAY correspondent
Even as the Central Bureau of Investigation (CBI) continues its probe against Kadapa MP YS Jagan Mohan Reddy, Enforcement Directorate (ED) is likely to tighten the noose around him. According to sources, ED may file money laundering charges against Reddy and his associates, days after CBI searched various premises belonging to him.
ED is understood to have initiated a discreet inquiry trailing the funds pumped by the son of former Andhra Pradesh chief minister YS Rajasekhara Reddy and his associates into the companies owned by them.
The agency, according to sources, has gone through some official documents of transactions under the provisions of the Prevention of Money laundering Act (PMLA).
CBI has already registered a case against Reddy on the instructions of Andhra Pradesh High Court under IPC sections pertaining to cheating, criminal conspiracy, criminal breach of trust and under provisions of Prevention of Corruption Act. CBI said searches were conducted at Hyderabad, Bangalore, Chennai, Kolkata, Rajkot, Delhi and Mumbai.
"CBI has registered a case...against a Member of Parliament from Andhra Pradesh, and others, on the orders of Andhra Pradesh HC...on the allegation that the investors invested in the companies owned and promoted by the MP at very high premiums as a quid-pro-quo for favours doled out by the then Andhra Pradesh CM," said CBI.
