V Vijay Sai Reddy, vice-chairman of Jagati Publications and second accused in the case, requested the court that it directs the CBI to refrain from investigating into the group companies of Jagan, with regard to the transaction and affairs of the companies (and persons) that took place prior to May 2004.  Alleging that CBI was forcing and threatening witnesses in the case pertaining to alleged disproportionate assets of Kadapa MP YS Jaganmohan Reddy, Vijay Sai Reddy moved court seeking direction to the CBI to probe the matter only between 2004 and 2009.

Following an Andhra Pradesh High Court order, an FIR was registered by CBI to probe investments into group of companies of Jaganmohan Reddy. According to the FIR, favours were shown by the AP Government to such investors between May 2004 and September 2009.

Rao alleged that the line of investigation adopted and pursued by the CBI is far beyond the scope of enquiry permitted by the High Court. "The CBI questioned my client over the affairs of the group companies prior to May 2004 and now is pressurising and threatening other witnesses to give statements against the petitioner with regard to transactions of the group of companies of Jagan," Rao further submitted.

He said in the petition that he and other witnesses are being forced to make statements with regard to the transactions of the companies in 1999, 2000 and 2001. These transactions, he said, were not in the scope of investigation.

Mr Vijay Sai Reddy alleged that the CBI was pressuring his subordinates S. Suresh Babu and K. Jayalakshmi and also the MD of another firm to give statements against him under Section 164 CrPC and implicate him with regard to transaction of the Jagan group of companies prior to May 2004.

He said CBI was forcing them to make statements with reference to M/S Kealawn Technologies Private Limited, Chennai, and five other companies namely Saisurya Ware-housing Comapny limited, Excel Prosoft Limited, Sigma Oxygen Limited, Rivera Enterprises and ZM Infotech Limited, which were merged into Kealawn Technologies Private limited subsequently following Chennai HC directions.

Mr Vijay Sai Reddy said that he was originally the promoter of Kealawn Technologies Ltd and he became the financial advisor to Jagan’s companies after the company was acquired by the Kadapa MP.