Amaravati insider trading: Andhra Pradesh government to bring ED into probe

VIJAYAWADA: The State government is likely to bring into picture the Enforcement Directorate (ED), which investigates cases related to financial irregularities, after a preliminary probe by the Crime Investigation Department (CID) reportedly found evidence of money laundering by beneficiaries of the alleged insider trading in Amaravati.

Though the government is yet to take a call on handing over the probe into the alleged insider trading in Amaravati to either the Central Bureau of Investigation (CBI) or Lokayukta, as announced by the Chief Minister YS Jagan Mohan Reddy earlier, the CID has reportedly launched a preliminary probe into the allegations, official sources confirmed to TNIE.

The YSRC government, which is moving ahead with its three-capital proposal notwithstanding the protests by TDP and other opposition parties and Amaravati farmers, had directed the CID to go ahead with preliminary investigation into the alleged insider trading. The investigating agency has reportedly found that at least 797 white ration card holders had purchased land parcels worth several crores before the announcement of Amaravati as capital.

The Cabinet sub-committee constituted by the YSRC government to study irregularities in Amaravati had found insider trading in the purchase of 4,070 acres of land in the capital region. “The CID has found evidence of money laundering in the purchase of lands by people associated with the then ruling party. The government is mulling handing over the evidence to the ED for further probe,’’ the sources said.

Apart from serving notices on the white ration card holders who purchased lands in Amaravati, the CID, according to sources, had also approached the Income Tax department with the Aadhaar card details of around 477 persons who have purchased lands and sought details of PAN cards and Income Tax returns. It is learnt that the I-T department responded to the CID stating that none of the said persons were Income Tax assessees, but some of them were PAN card holders.

According to sources, the CID, in its preliminary inquiry, found prima facie evidence to register cases under sections of cheating, misappropriation of funds, illegal sale of land and others. The YSRC government has been alleging that TDP leaders, including the then MLAs, ministers and businessmen associated with families of top TDP leaders benefited from the alleged insider trading.

CID findings

• 797 white ration card holders had purchased land parcels worth several crores before the announcement of Amaravati as capital.
• CID served notices on the white ration card holders who purchased lands in Amaravati. It also approached the Income Tax department with the Aadhaar card details of around 477 persons who purchased lands.
• The  Income Tax department responded to the CID stating that none of the said persons were I-T assessees, but some of them were PAN card holders. The CID found prima facie evidence to register cases under sections of cheating, misappropriation of funds and illegal sale of land.
• A total extent of 4,070 acres of land on which alleged insider trading was found by the Cabinet sub-committee.