With CBI filing a chargesheet in a court here today against him in a disproportionate asset case,Kadapa MP Y S Jaganmohan Reddy faces the prospect of arrest,official sources said. Before he is arrested,Jagan is likely to be quizzed by the Enforcement Directorate,which is also investigating the manner in which funds from some tax haven countries have been routed to his businesses,the sources said. The large-scale investments in various companies floated by Jagan,particularly the Telugu newspaper and television channel Sakshi,first came under the scanner of the Income Tax Department in 2010. The Income Tax authorities established that several "investors" who put in huge money in Jagati Publications,that publishes Sakshi daily,were "non-existent". CBI then picked up the case on the direction of the Andhra Pradesh High Court and expanded the purview of its investigations to cover the alleged quid pro quo deals benefiting Jagan when his father Y S Rajasekhara Reddy was the state Chief Minister. The ED investigation into the case ran parallel to the CBI probe. CBI alleged large-scale investments came into Jagan's companies allegedly as a quid pro quo to the largesse of Rajasekhara Reddy in the form of allotment of government land. The Comptroller and Auditor General too castigated the YSR government for land distribution spree that had allegedly caused monetary loss running into several thousand crores of rupees to the state exchequer. The main person arrested by CBI so far in the assets case against Jagan was his auditor V Vijaya Sai Reddy. ED has so far questioned only Jagan's representatives in the case and he too may be quizzed soon as the case reached an advanced stage,said the sources adding his arrest may happen subsequently,a senior CBI official involved in the investigation of the case said. But political factors could well determine whether Jagan will indeed be arrested as ruling Congress party,which he quit in November 2010,is said to be desperate to take him back or at least join hands.
