Leader of the opposition in AP assembly, Jagan Mohan Reddy is trying his best to cash in on the failures of AP CM Chandra Babu Naidu and the ruling TDP party to come to power in 2019 elections and realise his dream of becoming CM of the state.
However whenever he adopts aggressive postures, he gets shock from either the CBI or ED on his corruption cases. According to the latest Jagan got shell shocked with the ED raids.
The Enforcement Directorate conducted raids across the country at Shell Companies related to Jagan Mohan Reddy. This is the largest crackdown over 100 such companies across the nation.
ED sharing information on twitter posted “ED (conducted) searches at shell companies related to Y.S. Jagan Reddy Rajeshwar Exports and others to unearth their modus operandi (sic),” ED in 2016 revealed that investagations found that jagan had laundered the proceeds of crime through his group of companies — Sandur Power Company Pvt Ltd, Classic Realty Pvt Ltd, Silicon Builders Pvt Ltd, Saraswati Power and Industries Pvt Ltd and 10 others — in the form of investments, purchase of movable and immovable properties and third party payments among others.
PMO's Special Task Force gave green signal to ED for the raids. Shell companies are defined as firms set up by nominal paid-up capital but having high reserves and surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, private companies as majority shareholders, low turnover and operating income, nominal expenses, nominal statutory payments and stock in trade and minimum fixed asset.
It has to be seen how Jagan Mohan Reddy and his party YSRCP react to ED raids.
