Graft case: CBI wants custody of YSR Cong boss Jagan

The Central Bureau of Investigation today sought 14 days' custody of Jaganmohan Reddy, YSR Congress chief and son of former Andhra Pradesh chief minister Y S Reddy, who was arrested on Sunday in a graft case, saying he was not fully cooperating with the investigating agency and could influence witnesses if left at large.
 
It is not yet known if the Special CBI Court in Hyderabad has granted the custody; but going by precedent it is likely to do so.
 
Jaganmohan (39), a Member of Parliament from Kadapa constituency, is accused of conspiring with his father to grant illegitimate concessions to companies (particularly iron ore mining companies), which in return put money in businesses owned by the Reddy family. This money was re-routed to India through tax havens abroad in a money laundering opertion known as a 'hawala' racket.
 
Jagan's auditor Vijay Sai Reddy has also been summoned by the court, and was present during today's proceedings. Jagan's wife Bharti Reddy was also present.
 
According to CBI counsel Ashok Bhan, Jaganmohan ''sent (bribe money) abroad and got it reinvested in his business through a hawala racket''.
 
"Jagan never cooperated in the investigation during the three-day questioning period in a true sense," the CBI counsel said. "He can no longer masquerade as a victim of CBI probe. He cannot assail CBI for being victimised.

''He has hoodwinked the people out of a huge sum of money. We will now show the people about his swindling. He cannot seek public sympathy. He has deprived poor people and caused them irreparable loss to enrich himself through dubious mechanisms.''

The CBI has charged Jagan under Sections 120-B (criminal conspiracy), 420 (cheating), 409 (criminal breach of trust) and 477A (falsification of accounts) of the Indian Penal Code and Section 13 of the Prevention of Corruption Act.
 
Bandh partial amid tight 'bandobast'
Earlier, Jaganmohan arrived at the special CBI court at Nampally amid heavy security to prevent his supporters from breaking loose in the court premises.

Jaganmohan Reddy's mother Y S Vijayamma and other family members continued today to stage a sit-in outside their plush Lotus Pond residence in upscale Banjara Hills against his arrest. Dozens of party activists joined them in the protest.

But the YSR Congress party's call for a day-long Andhra Pradesh shutdown today evoked only partial response.

Apart from some of pelting buses with stones – minor incidents in the Indian context – the situation in the state is peaceful, police said.