The whole scenario that unravels in the wake of the Central Bureau of Investigations report about Y S R Congress Chief Y S Jagan Mohan Reddy, speak volumes of intelligent brains working behind the screen. The modus operandi was simple but well planned. During the era of Y S Rajasekhara Reddy, investors favored with land allocations in exchange for their buying shares of the dummy companies at exorbitant premiums fixed by Jagan and Co, says the CBI FIR.
Some 22 companies funded Jagathi Publications (JP), of them in 16 Companies, one Mr. Ramchandra Singh was the main person running the show. The income tax department called these companies as the Briefcase companies. Six of them were Artiligence Bio-Innovations, Bay in Land Finance, Gateway Computers, Grow More fund Management, Keerthi Electro Systems and Super Finance were promoting companies for ETP Corporation based at Chennai as listed in stock exchange. ETPC was a just a namesake listed company. In 2003 NNE and BNE suspended transactions of this company for discrepancy in its auditing process.
As per sources these companies without proper addresses, were based out of Howrah, Kolkata, Mumbai, Rajkot, Bangalore, Delhi and Tamil Nadu. And they were used for pumping back kickback amounts in to JP. Most of these companies were suffering huge losses, yet could pump in millions in to JP, is worth noting.
Approximately INR 164.69 Cr flowed into JP from these companies in a phased manner. As per sources the fund flow started in 2007. These companies bought the shares at Rs.350 per share when the face value of the share was just Rs.10. At the time of investing these companies were in very bad shape, but could cough up such huge amounts is an unanswered question. The sources also revealed that all the companies were dummy companies and they do not even exist in the address provided in their Registration of Companies application. Another astonishing fact is most of them did not even posses a dedicated telephone line working on their name.
One transaction would reveal the mammoth size of misappropriation in place. Artiligence Bio-Innovations (ABI), once quoted as one of the best listed company by JP, had just Rs 22,850 in its bank account in 2008-09. In October, 2007, this same company pumped in Crores in to JP. As per the report given by the Income Tax authorities, as quoted in a prominent media, just a day before transfer of funds in to JP, funds from various sources got credited in to the ABI. All this proves beyond doubts that the whole transactions were fabricated.
Taking all these into consideration the whole network had been created with intelligent brains who should have been well versed with accounts, equity and finance…. So getting a clue… well a few days of wait will see the climax of this film, but much suspense is in store at the moment. Keep watching this space for more updates on the issues. (With inputs from internet- AarKay)
