KSPL share acquisition row: CID questions Vijayasai Reddy; ex-RS member advises Jagan to break free from coterie

Amaravati: Former Rajya Sabha member V. Vijayasai Reddy has denied any involvement in the alleged forcible acquisition of shares belonging to K.V. Rao, former Chairman and Managing Director of Kakinada Seaports Pvt. Ltd. (KSPL).

On Wednesday, Reddy was questioned by the Andhra Pradesh Crime Investigation Department (CID). He asserted that Y.V. Vikranth Reddy, son of YSR Congress Party (YSRCP) MP Y.V. Subba Reddy, was the key figure behind the KSPL deal.

Vijayasai Reddy resigned from the YSR Congress Party and stepped down as an MP in January.

Speaking to the media, Reddy clarified that the share acquisition transaction was solely between K.V. Rao and Aurobindo Realty Managing Director P. Sarath Chandra Reddy, who is Vijayasai Reddy’s son-in-law. He claimed that the deal was entirely facilitated by Vikranth Reddy.

"I learned through common friends that my name was included in the complaint lodged with the CID at the behest of IAS officer R. Karikal Valaven, who has connections with some of the auditors involved in the share transfer. To my knowledge, YSRCP president and former Chief Minister Y.S. Jagan Mohan Reddy was neither involved in the transaction nor benefited from it," Reddy stated.

The Case Against YSRCP Leaders:

An FIR has been registered against Vijayasai Reddy, Y. Vikranth Reddy, Sarath Chandra Reddy, and two companies for allegedly acquiring stakes in Kakinada Seaports Ltd (KSPL) and Kakinada SEZ (KSEZ) Ltd through "cheating, criminal intimidation, and conspiracy." The shares were reportedly acquired at a fraction of their actual value for Aurobindo Realty (now Auro Infra).

It is alleged that a 41.12% stake in KSPL, valued at ₹2,500 crore, was forcibly obtained for just ₹494 crore.

Interestingly, K.V. Rao, the CMD of KSPL, has named YSRCP chief Y.S. Jagan Mohan Reddy in the FIR. He claims he was coerced into transferring his shares at Jagan’s behest, alleging that he and his family were threatened with criminal action.

Vijayasai Reddy’s Alleged Role:

According to the FIR, in May 2020, Vijayasai Reddy contacted K.V. Rao and informed him that Vikranth Reddy would reach out regarding the acquisition of shares in Kakinada Port.

Subsequently, Vikranth Reddy summoned K.V. Rao to his residence in Hyderabad. During their meeting, Vikranth Reddy allegedly warned K.V. Rao that KSPL owed ₹1,000 crore to the Andhra Pradesh government based on a special audit report.

K.V. Rao was reportedly told that if the government were to demand payment, KSPL would face serious financial trouble. He was, therefore, pressured into relinquishing his 50% stake in KSPL and 48.74% in KSEZ.

Jagan Has No Future Unless He Breaks Free from His Coterie:

Vijayasai Reddy stated that he chose to leave the YSRCP after realizing that Y.S. Jagan Mohan Reddy no longer valued him, attributing this to the influence of a "coterie" surrounding the party chief.

"The day he frees himself from this coterie, he will have a future. Otherwise, things will be very difficult for him," Reddy warned while addressing reporters.

He further alleged that those wishing to meet the YSRCP supremo had to navigate through this inner circle, often resorting to dubious means, including bribery, to secure an appointment. Without naming individuals, he claimed this group had successfully driven a wedge between him and Jagan.

"A leader should not fall for rumors. If they do, both the leader and the people will suffer—so will the party. That is exactly what is happening," he concluded.