Chairman and managing director of Kakinada Seaports Limited has filed an FIR with Andhra Pradesh crime investigation department (CID) accusing YSRCP Rajya Sabha MP Vijay Sai Reddy and top officials of Aurobindo group of forcibly acquiring stake in Kakinada Seaport and Kakinada SEZ.
K V Rao, chairman of Kakinada Seaports Limited, has named YSRCP chief and former chief minister Y S Jaganmohan Reddy in the FIR and said he was forced to transfer shares at his behest with the threat of criminal cases against him and his family. Rao has alleged in the FIR that as soon as the YSRCP came to power in 2019, an audit and then a forensic audit of Kakinada Seaports Limited, which was the concessionaire for investment, development of infrastructure, maintenance and operation of Kakinada Deep Water Port, was ordered. The FIR alleges, “At the time of closure of the audit operations, the members of audit party orally informed that they found, during the course of audit, huge accounting irregularities by way of suppression of gross revenue and thereby the Government was deprived of revenue share to the extent of about Rs 1000 crore during FY 2014-15 and 2018-19.”
Rao has alleged that In May 2020, Rajya Sabha MP Vijay Sai Reddy called him and informed that MP Y V Subba Reddy’s son Vikranth Reddy would contact him for acquisition of shares in Kakinada Port. Vikranth Reddy informed him he was not acquiring the shares but it was for Andhra Pradesh chief minister Jagan Mohan Reddy. Rao says despite his best efforts Jagan did not meet him. Shares were transferred in the name of Aurobindo Realty and Infrastructure Pvt Ltd (presently named Auro Infra Private Limited). Rao insinuates that the deal was supervised by director of Aurobindo Pharma Sharath Chandra Reddy and Vikranth Reddy. About 41.12% of Kakinada Sea Ports Limited, valued at Rs 2500 crore, was allegedly acquired for Rs 494 crore. In the FIR, Rao has alleged that in September 2020, after “forcible acquisition” of shares, Vikranth Reddy took Rao to meet then chief minister, who told him to follow all instructions of Vikranth Reddy.
“After the signing of the agreements, Mr Vikranth Reddy and Mr Sarathchandra Reddy asked me to come to Vijaywada to meet Mr Y S Jaganmohan Reddy, Chief Minister. Accordingly, I went to Vijaywada and and met Mr Vikrant Reddy, who had taken me to the house of Mr YS Jaganmohan Reddy. In the meet, Mr Vikranth Reddy explained the happenings. When I tried to protest, Mr Jaganmohan Reddy did not allow me to say anything, except asking me to follow what is said by Mr Vikranth Reddy. Thus it is clear that all this is done at the instance of Mr Jaganmohan Reddy became clear.”
Later, 49% of Kakinada SEZ, valued at Rs 400 crore, was also allegedly forcibly acquired for just Rs 12 crore. This was after GMR group had already given an offer of Rs 400 crore. This issue has taken serious political overtones as deputy chief minister Pawan Kalyan had recently made a surprise inspection of Kakinada Sea Port and accused YSRCP of siphoning off PDS rice for export.
