Hyderabad:
A day after NDTV reported on the financial links between YSR Congress chief Jagan Mohan Reddy and former Tourism Minister for Andhra Pradesh Gali Janardhana Reddy, Jagan has issued a statement denying any links with the businesses of the mining baron.
Here's the statement by Jagan Mohan Reddy:I am pained at the ongoing Media campaign deliberately linking us to Mr Gali Janardhan Reddy and his businesses. I am sorry to say that these are highly motivated news items without any basis. It is impossible for anybody to be in possession of any clinching evidence of our business relationship with him, as it simply does not exist. As I understand from the Media, the case against Mr Gali Janardhan Reddy is about illegal mining and forest law violation. I sincerely request the Media to kindly hand over any Clinching evidence or information, if any, that they think they are in possession of about his purported investments in our group to CBI or ED or IT departments as it helps them to effectively prosecute the ongoing cases. It would have been perfectly justified for the Media to speculate on the basis of some information, if the Government was dodging any probe. Now that a Government which is completely opposed to us is pursuing the CBI, IT and ED probe, nobody should have any doubts about the investigations.
Unable to face my father politically, a systematic vilification campaign was launched against my father by TDP along with EENADU daily and other newspapers and TV Channels supporting TDP. As part of this smear campaign, untiring efforts are made to link us to Mr Gali Janardhan Reddy. All that my father did as Chief Minister was to invite them to promote a steel plant at Kadapa by offering the same concessions as were offered to any industrialist in the State as per the Mega Project policy. If anybody sincerely wants to know whether some favour was done to Brahmani for their steel plant, I wish they go to Kadapa district and find out whether the land allocated to the project is lowly priced or highly priced. For those sitting in metropolitan cities, it is difficult to appreciate what is price of land in a rain shadow area, particularly when it is a non arable land, where not even a blade of grass was grown in hundreds of years. There are no takers for these lands at any price. These things cannot be settled in the Media. One has to be sincere to know the truth.
In respect of grant of mining leases for iron ore, it should be understood that the power to grant mining leases is vested with the Central Government. The State Government only forwards the applications. There are hundreds of occasions in the recent past when the Central Government sent back the applications. In fact, the renewal in respect of the said iron ore mining lease and its transfer to Mr. Janardhan Reddy's company were done when Mr. Chandrababu Naidu was the CM.
I am surprised that few newspapers and tv channels have carried the same version which my known opponent and my rival news paper Eenadu had published on 11th November 2009. It was countered and answered in detail through Sakshi on the very next day i.e. 12th November 2009 under the banner "EDI NIJAM? " (What is the truth?). On 17th November 2009, for the first time Mr.Ramakrishna Reddy, Editorial Director of Sakshi, had answered these allegations on his name through Sakshi.
However, because few people have raised specific issues, I give below information, which I genuinely believe to be true.
Q1). Isn't it strange that Jagan's media empire and Janardhan Reddy's business associate operate from same address?
Ans) Is it strange for many companies running their offices from one multi-storied apartment complex in Metropolitan cities to have the same address?
The premises bearing No.8-2-120 is a residential complex by name M/s. Krishna Sindhu Residency, Banjara Hills, Hyderabad. In the said building complex there are about 14 apartments. M/s. Jagati Publication Limited was incorporated with the address of the auditors, M/s. V S Reddy & Co, for the limited purpose of incorporation. It is pertinent to note that Jagati publication was incorporated with the address G-l, Krishna Sindhu residency. Red gold enterprises was located at F-l & RR Global Enterprises Pvt Ltd at S-3 of the same complex. It is therefore clear that three offices are located at three different flats in three different floors and therefore the allegation is completely baseless and malicious. After about a week after incorporation, M/s. Jagati Publication Limited shifted its registered office to Reliance House, Road No.7, Banjara Hills, Hyderabad.
Q2) Why has Reddy's partner made huge investment in Jagan's media empire?
Ans) I deny this allegation completely, as there is no truth in this. The allotment of shares is available with ROC of the concerned State. I have been told that Red Gold, a partnership firm is not even having a bank account. The non-investor partner of Red gold, Mr. Ramasubba Reddy is an employee of R.R.Global. He does not hold any shares or directorship in RR Global. Mr Rama Subba Reddy is an experienced geologist and retired as Executive Director, APMDC, which post he got during Mr Chandrababu Naidu's tenure. Incidentally the same Chandrababu Naidu transferred the said Mining Lease to Janardhan Reddy's company during his Chief ministership. Basing on this, can one come to the conclusion that there is a link between Janardhan Reddy, Red Gold and Chandra Babu? Many people have been using Mr. RamaSubba Reddy's professional services. By any stretch of imagination, he is not an investor in Sakshi. I believe, Red Gold has never taken off.
Q3) How is the 50 percent partner in Janardhan Reddy's illegal mining company also a director of Jagan's media empire?
Ans) This is absolutely baseless. I do not know how this is getting circulated. R.R.Global is an investor in Sakshi. It's a fact that Mr. Ramasubba Reddy who is an employee in R.R.Global is a partner in Red gold, which is a non-starter. It is important to note that none of the directors of RR Global is a partner or investor of Red Gold. So, what is the relation between Gali Janardhan Reddy's companies and Sakshi's investors? R.R.Global where Mr.Sajjala Diwakar Reddy is a director has invested in Sakshi and Diwakar Reddy's brother Mr.Sajjala Ramakrishna Reddy who is a journalist for the past three decades is the editorial director of Sakshi. But what is the link between Gali Janardhana Reddy's companies and Diwakar Reddy's companies? Sajjala family has been in the mining business for the past three decades and RR Global is, or was not doing any business with Gali Janardhan reddy's companies.
Q4) Did Jagan have any stake in Brahmani steel, a Reddy owned company that got land at throw away rates during father YSR's regime?
Ans) I never had even one share in this company. This particular land is located in a rain shadow area, completely rocky and is non-arable, where for centuries, not even a single blade of grass was grown. There are no takers for these lands at any price. The land was not given free of cost. In fact, it was priced much higher than the prevailing market price, which is a verifiable fact from the records of Registrar of Stamps. These lands are nowhere near big metropolis; not even close to any big urban centre. Honestly, there is no value for these lands, which can be easily found out if discreet enquiries are made there. Where is the question of any quid pro quo under these conditions? In fact, in the larger interest of establishing truth, I request you to send a team to find out what is the real story. It will help us also. Even now, the land prices have not increased because they are not useful for agriculture. There are no affluent farmers in Rayalaseema region, which is a backward area. All that my father was interested was in the industrialization of the district, as agriculture in that area has not been profitable. So, the project was cleared as per the Mega Project Policy of the State. If YSR was interested in quid-pro-quos then he might have allotted lands to Mr. Janardhan Reddy near Hyderabad or in the vicinity of any developed towns, as was done by Mr Chandra Babu in allotting 5000 Acres of land in the suburbs of Hyderabad to GMR during his Chief Minister-ship.
Q5) Instead of trying to be defiant, should Jagan come clean on whether there was Quid Pro Quo between his companies and Janardhan Reddy's?
Ans) How did you come to the conclusion that I am defiant? How can I refuse to give information, when CBI, ED and IT are actively probing? As for the Quid Pro Quo, one should prove at least a single Rupee transaction between these companies. Otherwise it amounts to just carrying wild allegations, which were already and repeatedly carried by the rival Media in Andhra Pradesh for the last three Years, i.e., since the inception of SAKSHI.