The Enforcement Directorate has begun probe into the disproportionate assets case of Mr.Y.S. Jaganmohan Reddy, Kadapa MP and president of YSR party.
The four-member investigating team has entered the fray probing into allegations of money-laundering and violation of Foreign Exchange Management Act and the trail of money into firms owned by Mr.Jagan.
The ED team is questioning Mr. Nimmagadda Prasad and others in their quest to gather information with regard to money flow. The investigations are centred around investments made into Sandur power and Jagathi Publications.
The CBI report filed yesterday has indicated at money trail to Mauritius and Luxembourg into Mr. Jagan’s firms.
Mr. Jagan Reddy, who was arrested by the CBI after three days of grilling, is now lodged in the Chanchalguda jail after being remanded to judicial custody till June 11.
A battery of lawyers today filed applications for his bail at a Special CBI court. The court posted the petition for May 31 directing the CBI to file their counter. They have contended that Mr. Jagan is the main campaigner for the party during the by-elections to the 18 Assembly and one Parliamentary seat in the State. They also argued that the CBI stand that he would tamper with evidence was incorrect.
The Andhra Pradesh High Court has allowed Jagan’s counsels to file a quash petition while permitting the CBI to file a petition for his custody. Both these are likely to come up on Wednesday.
Mr. Jagan’s lawyers have been contending that he has been arrested as a part of the conspiracy by the ruling Congress party to create law and order problem and postpone the elections to be held next month.