Will never work against Jagan: Vijayasai Reddy resigns as MP

Amaravati: YSR Congress Party (YSRCP) senior leader and a close confidant of YSR family V Vijayasai Reddy resigned as Rajya Sabha MP.

On Saturday, he met Vice President Jagdeep Dhankhar and submitted his resignation.

The two-time MP Vijayasai Reddy served like a bridge between the YSRCP and BJP, while the YSRC party was in power in Andhra Pradesh. His resignation will necessitate the TDP to nominate a new person as the Rajya Sabha MP, replacing Vijaya Sai Reddy.

His resignation comes at a time when the Andhra Pradesh Crime Investigation Department (CID), and Enforcement Directorate are probing the Kakinada Sea Ports Limited case in which Vijayasai Reddy is one of the accused, involved in coercing the promoters to sell their shares at a nominal value.

What is the case?

An FIR has been registered against YSRCP leaders V Vijayasai Reddy, Sarath Chandra Reddy (Son-in-LawofVijayasai), Y Vikranth Reddy and two companies for allegedly acquiring stakes in Kakinada Seaports Ltd (KSPL), and Kakinada SEZ (KSEZ) Ltd through “cheating, criminal intimidation, conspiracy". The shares were bought at a throwaway price for Aurobindo Realty (renamed as Auro Infra).

It is alleged that a 41.12 percent share of the port, valued at ₹2,500 crore, was forcibly acquired for ₹494 crore.

Interestingly, Karnati Venkateswara Rao (KV Rao), Chairman and Managing Director of KSPL, has named YSRCP chief and former chief minister YS Jagan Mohan Reddy in the FIR. KV Rao said he was forced to transfer shares at Jagan’s behest. He alleged that he and his family were threatened with criminal proceedings.

What is Vijay Sai Reddy's role?

In May 2020, Vijayasai Reddy called KV Rao and informed that Vikranth Reddy, the son of YV Subba Reddy would contact him for the acquisition of shares in Kakinada Port.

Following this, Vikanth Reddy asked KV Rao to visit his home in Hyderabad. During the conversation, Vikranth Reddy allegedly threatened KV Rao, stating that KSPL owed ₹1,000 crore to the Andhra Pradesh government as per a special audit report.

KV Rao was also informed that if a demand is raised by the GoAP, the KSPL would be in deep trouble and hence, he was asked to part with his 50 percent stake in KSPL and 48.74 percent in KSEZ.

From the foregoing facts, it is evident that there was a concerted plan to take over the shareholdings of KSPL and KSEZ by hook or crook by YS Jagan Mohan Reddy, and as per the plan that was hatched by them, they have appointed the auditors for special audit /forensic audit, found non-existent suppression of gross revenue and raised a demand of Rs 965.65 crore with the help of fabricated document as the share of the Government, which was suppressed.

After the transfer of shareholdings in favor of Aurobindo for the FY 2020-21, 2021-22, 2022-23, and 2023-24, the said company was paid nearly Rs 102 crores as a dividend. Not only that KSPL was made to give inter-corporate deposits to the tune of Rs.280 crores in favour of various companies of Aurobindo Group.

ED questions Reddy:

On January 7, ED questioned Vijayasai Reddy for nearly six hours in Hyderabad.

Speaking to the reporters after questioning he said, "They interrogated me, asking 25 questions, primarily based on the allegations made by KV Rao. As a public representative, I often receive requests from different individuals. Some ask me to speak to officials to resolve their issues, while some request me to contact business people for job opportunities. Regarding Kakinada Sea Port, I have clarified during the inquiry that I neither called KV Rao nor promised to send Vikrant Reddy to him."

Agriculture is my future, says Vijaya Sai Reddy:

The two time Parliamentarian Vijayasai Reddy announced he will resign from his Rajya Sabha membership on January 25. His step is a big blow to the YSRCP, given that he is said to be the ‘umbilical cord between the BJP and the YSRCP', when the party was in power.

Known to be among the top brass in the party, filling the gap will be a difficult task for former chief minister YS Jagan, he clarified that he would not be joining any political party or pursuing any other official position in the future, but hints that agriculture is where he sees his future.

“My resignation is a personal decision. There is no external pressure or influence behind his choice. I will never work against YS Jagan. I made it clear that the decision is entirely my own, without any form of coercion. I am deeply indebted to the YS family, who have placed their trust in me across three generations,” he stated.