India Cements falls 6% as CBI chargesheet names Srinivasan

Investors actively sold shares of India Cements in early morning trade on Wednesday. The stock lost 6 percent as its MD N Srinivasan has been named in one of the three chargesheets filed by the CBI in a special court in the corruption case involving YSR Congress party Chief YS Jaganmohan Reddy.

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The agency has also filed chargesheets against cement companies-India Cements owned by Srinivasan, Penna Cement and Bharathi Cement, now named as Raghuram Cements, for allegedly investing money in Jagathi Publications, owned by Jaganmohan, and in return got favours from the then Andhra Pradesh government led by YS Rajasekhara Reddy, Jagan Mohan’s father , CBI sources said.

Srinivasan is an accused in the first chargesheet relating to alleged undue favours given to India Cements in the form of renewal of lease of land and allotment of water from Kagna and Krishna rivers by violating norms and procedure, CBI said.

The agency claimed these favours were allegedly for quid pro quo investments made by N Srinivasan to the tune of Rs 140 crore (approximately) in Jagan's companies-Raghuram Cements, Jagathi Publications and Carmel Asia Holdings.

At 10:52 hrs the stock was quoting at Rs 48.20, down Rs 2.10, or 4.17 percent on the BSE.

(With inputs from PTI)