Naidu flays Satyam link of YSR Reddy's sons

Hyderabad: The talk of political links of Satyam and Maytas are giving sleepless nights to politicians in Andhra Pradesh.

There is continuous pressure from all quarters on AP CM YSR Reddy about his sons’ links with the troubled IT majors.

A CBI probe has been ordered but the accusations from opposition Telugu Desam Party (TDP) that YSR Reddy and his son used Satyam to further their business interests to the tune of almost Rupees ten thousand crore refuse to die down.

YSR Jaganmohan Reddy, a media mogul and a top businessman is the son of the Andhra Pradesh Chief Minister Rajsekhar Reddy. YSR Jaganmohan Reddy is the target of TDP for his alleged involvement in the Satyam scam.

TDP chief Chandrababu Naidu is now camping in Delhi, armed with what he describes as clinching evidence against the first family of AP's politics.

“He has converted corruption money into white money. He violated all rules, laws and committed economic crimes. YSR's family income before he became CM was 41 lakh and now it is more than 10,000 crore. We have documentary evidence,” insists Naidu.

CNN-IBN has learnt that within the UPA, there is a sense of unease on YSR and his son's exact role in the entire scam.

YSR Jaganmohan Reddy had bought a small company called Sandur Power Ltd and ever since his father became state chief in 2004, hectic activity was witnessed in this power generation firm.

Jagan managed to raise almost 125 crore rupees by allegedly allotting shares at a premium of Rupees 61 to two Mauritian companies, viz. 2 I capital and Flurry.

Sandur went on to float some subsidiary companies like Classic Reality, Caramel Asia, Bhavati Sanidhi Estates and Harish Infra.

Each of these companies was used to float separate firms including Jagan's pet Jagathi Publications and Indira Television.

Almost 200 crores is believed to have been circulated between these companies, most of which was raised for different purposes.

Jagathi Publications, armed with an audit from the famous Pricewatershouse Coopers (which in turn is now under scanner for its involvement in Satyam scam) then got huge sums as revenue from government advertisements.

Jagan is now being accused of using his links with Satyam founder Ramlingam Raju to expand his empire.

YSR Reddy defends his son’s stand though by saying, “If my son is doing business, is that a crime? Let people say what they want to say.”

The Satyam scam has turned out to be the biggest example of corporate fraud in our country. The allegations of embroilment in the Satyam saga for the YSR Reddy camp could have not come at a worse time, what with the general elections only a few weeks away.

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