The Andhra Pradesh Crime Investigation Department (CID) has registered a case over alleged coercive share transfers involving Kakinada Sea Port (KSP) and the Special Economic Zone (SEZ). The case stems from a complaint by former KSP promoter Karnati Venkateshwar Rao (KV Rao), who accused prominent YSR Congress Party leaders of pressuring him to transfer shares worth `3,600 crore.
KV Rao alleged that he was coerced into transferring his shares under threats of fabricated legal cases, potential arrests of his family, and the closure of his businesses. He claimed that then Chief Minister YS Jagan Mohan Reddy orchestrated the scheme through Y Vikrant Reddy, the son of Jagan’s uncle YV Subba Reddy.
In his complaint, Rao claimed he was threatened with fabricated cases against him and his family, the risk of their arrest and the closure of their businesses. Under these threats, he alleged, he was forced to transfer shares worth `2,500 crore in Kakinada Sea Port Limited for `494 crore and shares worth `1,109 crore in Kakinada SEZ for a mere `12 crore to the Aurobindo Group. The shares were reportedly acquired by Aurobindo Realty and Infrastructure Pvt Ltd, a subsidiary of the Aurobindo Group.
The CID’s FIR includes charges under multiple sections of the Indian Penal Code, including Criminal Intimidation (Section 506), Extortion (Section 384), Cheating (Section 420), Forgery (Section 467), Criminal Conspiracy (Section 120B), and Organised Crime (BNS 111).
The FIR implicates several high-profile individuals and entities, including YSRCP MP V Vijayasai Reddy, Y Vikrant Reddy (son of MP YV Subba Reddy), Sharatchandra Reddy (Aurobindo Pharma director), Audit firms PKF Sridhar and Santhanam LLP and Aurobindo Realty and Infrastructure Pvt. Ltd. and its directors.
In May 2020, Vijayasai Reddy allegedly informed KV Rao that Vikrant Reddy would contact him regarding the share transfer. Subsequently, Vikrant Reddy reportedly stated that Jagan was behind the acquisition. Despite Rao’s attempts to meet Jagan directly, no meeting occurred. In September 2020 after the share transfer, Vikrant Reddy allegedly facilitated a meeting between Rao and Jagan, during which Jagan directed Rao to comply with Vikrant’s instructions.
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