Big Fraud In Kakinada Port Holdings; All fingers point at YS Jagan

Karnati Venkateswara Rao, former CMD of Kakinada Seaports Limited has filed a formal complaint with CID Director General Ravi Shankar Ayyanar, alleging the coercive acquisition of his family-owned company’s shares in Kakinada Deep Water Port by Aurobindo Realty & Infrastructure Pvt. Ltd. (ARIPL).

In his complaint, KV Rao implicates three individuals-Rajya Sabha MP V. Vijayasai Reddy, his son-in-law Sarath Chandra Reddy, and Y. Vikranth Reddy (son of Y.V. Subba Reddy)-along with ARIPL and the auditing firm PKF Sridhar & Santhanam LLP.

KV Rao claims that his enterprise, Kakinada Infrastructure Holdings Pvt. Ltd. (KIHPL), was robbed of its 41.12% stake in KSPL, a share worth approximately ?3,000 crore, between May 2020 and February 2021. He alleges that the accused executed a concerted plan to seize KSPL and Kakinada SEZ Limited’s (KSEZ) holdings, using fabricated documents and threats of legal action.

KV Rao states that in May 2020, Vijayasai Reddy became involved, followed by other accused individuals, who demanded nearly ?1,000 crore in revenue share for the Andhra Pradesh government. Auditors appointed for special and forensic audits reportedly raised a demand of ?966 crore based on alleged fabricated findings of revenue suppression.  

Under duress, KV Rao claims he was forced to sign agreements that facilitated the transfer of his stakes. As a result, KIHPL’s assets worth ?2,500 crore were sold for just ?494 crore, while KSEZ’s assets valued at ?1,109 crore were taken over for a mere ?12 crore. Rao also alleges that the threat of arrest and intimidation of his family members was used to coerce him into compliance.

This complaint has set the stage for a clear understanding that YS Jagan Mohan Reddy is the master mind behind this huge fraud. Already, the CID officials issued a look out notice on all the accused. They are ensuring that the accused do not flee the country while the investigation is currently on.