Vijayawada : The Andhra Pradesh police arrested former TDP MLA

J.C. Prabhakar Reddy and his son Ashmith Reddy on June 13, in an alleged insurance scam. The father-son duo have been shifted from Hyderabad to Anantapur for further interrogation.

The insurance scam is just the tip of an iceberg. The investigation has opened a plethora of alleged irregularities, in contrary to the Supreme Court orders.

The lid blew off when reliable sources informed top officials in the AP transport department that two companies M/s. Jatadhara Industries Private Ltd and M/s. C. Gopal Reddy Company, based out of Tadipatri town in Anantapur district, have purchased vehicles manufactured and sold as ‘scrap’ by Ashok Leyland. The companies got these vehicles registered in ‘Nagaland state’ during 2018 by producing ‘fake and fabricated documents’. These vehicles were found plying on AP roads, said the state Joint Transport Commissioner.

“An email was sent to Ashok Leyland Company on January 10, 2020 seeking details of 68 vehicles that were found plying on AP roads. The Ashok Leyland management informed that 66 vehicles were sold by them as ‘scrap’. While M/s C. Gopal Reddy purchased 40, M/S. Jatadhara Industries Private Ltd bought 26.

Documental evidence found that M/s Jatadhara Industries is owned by Ms J.C. Uma Reddy, wife of Prabhakar Reddy and C. Gopal Reddy is a close associate to the accused.

Investigation revealed that these two companies got the vehicles registered in Kohima, Nagaland, and later transported it to Anantapur district on NOC from Nagaland.

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Based on an intelligence report, the AP transport wing sent a team to Kohima, Nagaland. On inquiry with the concerned officials, it was found that one Uma Reddy of Tadipatri has signed the application produced before the registering authority on behalf of M/s. C. Gopal Reddy.

Further, the invoices issued by Ashok Leyland Company (produced for registration) are not in consonance with each other. “They were showing different dates and documents. The companies got their vehicles registered by producing incomplete invoices purportedly issued by Ashok Leyland authorities.

Scam details

The scrap vehicles purchased by these two companies were re-built as ‘fit for road’ against the Supreme Court order. The top court, in 2017, in WP (Civil) No. 13029/1985 directed that such vehicles that are not compliant to BS-IV emission norms shall not be sold in India by any manufacturer or dealer from April 1, 2017 and the authorities were prohibited from registering such vehicles.

Based on the violation, a case was registered at the I Town police station in Anantapur. Further investigation found that, in total, 154 vehicles of BS-III emission standards were also sold as scrap to the two companies. Over 24 criminal cases were registered against

J.C. Uma Reddy and the famils’s close aide Gopal Reddy.

Besides fake invoices, the two companies violated the Supreme Court as it involves fraudulent insurance policies for these vehicles.

“It is known that J.C. Prabhakar Reddy approached the new owners (persons who bought the vehicles from them) and settled amounts in the range of Rs 12- Rs 14 lakh in return for an assurance that they would not go against them by filing criminal cases of cheating. It appears thay they had settled the issue in connection with 35 vehicles. This is the reason why complaints were not filed by the owners,” said the JTC.

Coreena Suares

Coreena Enet Suares is the Editor of NewsMeter. Her stories have been published in the Deccan Chronicle Newspaper and the Asian Age. Coreena began her career as a News Anchor. Throughout her journey, she has been able to build a strong network with people from all walks of life. She is an alumnus of Edward R. Murrow Program for Journalists- Research and Investigation, a flagship initiative of the International Visitor Leadership Program (IVLP) Coreena is also a certified fact-checker by Google India Initiative. She has attended the 'Defence Correspondents Course 2019, through which she visited Indo- Pak border, besides traveling on a War-ship and insight into operations of Fighter aircraft. Coreena's focus areas are anti-crime investigation agencies and Defence reporting.

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