Political Diary

The Assembly was rocked on Monday over the fraud in Satyam Computers and the special favour “shown” by the government to Maytas Infra Limited in awarding projects worth over Rs. 20,000 crore and allotment of huge chunks of lands to it.

The storm was triggered off by a charge levelled by Leader of the Opposition N. Chandrababu Naidu that Chief Minister Y. S. Rajasekhara Reddy and his son Y. S. Jagan Mohan Reddy floated 14 companies to keep “the ill-gotten monies” received from “shady deals” they had struck with Satyam and Maytas.

Thirty four members of the Opposition, including TDP, CPI (M), CPI and TRS, were suspended during the evening sitting for disrupting proceedings insisting on a reply from the government. TDP members earlier stormed the Speaker’s podium raising slogans against corruption in the Rajasekhara Reddy government.

Even the morning sitting was in disarray as the Speaker K. R. Suresh Reddy adjourned the House twice.

Mr. Naidu, who initiated the debate on Satyam, dared the government to order an inquiry by a sitting judge into Heritage Foods promoted by his family and also covering the 14 companies floated by the Chief Minister.

These firms included Two I and Flori operating in Mauritius and into which Rs. 125 crore was deposited overnight, besides Sandur Power Limited, Jagati Publications and Indira Television, all run by Mr. Jagan Mohan Reddy.

Auditors of the Mauritius-based firms Vijayasai Reddy and Harish were made directors of other companies overnight to divert funds, the Opposition leader alleged.

Levelling personalised allegations against the Chief Minister, Mr. Naidu said that without investing a single paisa, Dr. Reddy’s benami companies now had Rs. 600 crore.

Another Rs. 1,300 crore was expected from Raghuram Cements and Brahmani Steels. Saakshi, the Telugu newspaper launched by Dr. Reddy’s family, was able to survive in the market despite sustaining a daily loss of Rs. 1 crore because of these companies.

How else this would have been possible for a family which showed only Rs. 25 lakh as income in IT declarations?

The government showed extraordinary favour to Maytas Infra by awarding it contracts. The Chief Minister also tried to protect Satyam ex-chairman B. Ramalinga Raju by referring his case to the CID and not to the CBI. In contrast, Dr. Reddy saw to it that Margadarsi Financiers did not get funds from the Blacstone company.

‘Surrender before law’

Mr. Naidu demanded that Dr. Reddy, like Mr. Raju, must make a self-confession and surrender before law for forming companies in violation of the law. [source: the hindu]