Amaravati: The Enforcement Directorate (ED) has intensified its investigation into the Kakinada Port case involving alleged forcible acquisition of majority shares in Kakinada Sea Ports Limited (KSPL) and Kakinada SEZ (Special Economic Zone) during the previous Jagan Mohan Reddy led YSRCP government.
Sources said that a significant focus of the probe is on the Rs 494 crore paid by Aro Infra Pvt Ltd (Aurobindo Company) to Kakinada Infrastructure Holdings Pvt Ltd (KIHL) for acquiring a 41.12% stake in KSPL.
Key Questions in the Probe
Source Of Rs 494 Crore
The ED is investigating how Aurobindo managed to arrange the amount with evidence suggesting possible money laundering and routing of funds.
Undervaluation Of Shares
It is learnt that the shares valued at Rs 2,500 crore were purchased for a significantly lower price of Rs 494 crore. Payments were made in two installments: Rs 100 crore on July 10, 2020, and Rs 394 crore on February 9, 2021 as per sources.
Role Of PKF Sridhar And Santhanam LLP
The audit firm is accused of fabricating reports to show reduced tax evasion by KSPL. The firm's initial report claimed evasion of Rs 965 crore, but later revised to Rs 9.03 crore.
The ED has already questioned representatives from PKF Sridhar and Santhanam LLP, seeking clarification on the discrepancies in their reports. Notices have been reissued to Vaikapa MP Vijayasai Reddy, his son-in-law's brother Sarathchandra Reddy, and directors of Aurobindo in the case.
According to sources, the ED plans to question Aurobindo directors, along with Vikrant Reddy, a relative of former Chief Minister YS Jagan Mohan Reddy. The ED is exploring whether the audit report was manipulated under external pressures to undervalue KSPL’s evasion and facilitate the transaction at an unfairly low price.
Read more:
- Andhra CID Issues Lookout Circulars Against YSRCP MP Vijayasai Reddy, Two Others In Kakinada Shares Case
- 640 Metric Tonnes Of PDS Rice Seized From Kakinada Port To Be Released For Export To West Africa
