The CBI found in its investigation that money had flowed into firms owned by YSR Congress president Mr YS Jaganmohan reddy through several Kolkata based bogus companies.  The agency has come across this piece of information during its probe into the case filed against Jagan for allegedly possessing illegal properties.

CBI has come to the conclusion that a number of companies which benefited from the YSR regime used to route funds into the Jagan-owned companies through the Kolkata based fictitious companies.

CBI has learnt that 22 small companies, majority of them from Kolkata, and a few in Mumbai, Rajkot, Bangalore and Delhi, had pumped funds to the tune of Rs.195.7 Cr into Jagathi Publications at a premium of Rs.350 per share between 2008 and 2010.

CBI sources revealed that lakhs of bogus companies are there in Kolkata and most of them are being used for conversion of black money into white. Explaining the modus operandi, the sources said bogus companies are registered with ROC in Kolkata in the name of employees, servants, drivers and even sweepers as directors. These companies would buy shares in other companies at premium rates for diverting the funds.

CBI investigators found that in case of Jagan, eight bogus companies had invested to the tune of Rs 15 Cr into Jagan-owned companies.

CBI said that ERES Projects Limited, whose bank balance was only Rs 5031 on Jan 30, 2008, got funds from Ramky Estate on Feb 15, 2008 and invested the amount of Rs.8 Cr in the Jagathi Publications on Feb 18, 2008.

Artillegence Bio Innova-tions Limited, Kirti Elector Systems Private Limited, Stocknet International Limited and Delton Exim Private Limited were identified as the bogus companies without any addresses but invested funds in Jagan’s firms.

“The directors and shareholders are the same in majority of the companies,” said a top CBI officer.