Case against YSRCP MP, others for alleged 'coercive' means to acquire stakes in Kakinada port, KSEZ

(Image: Reuters)

Andhra Pradesh police have registered case against V Vijaysai Reddy, a Rajya Sabha member of the YSRCP and Y Vikranth Reddy, son of another party member YV Subba Reddy. The allegations involve fraudulently acquiring stakes in Kakinada Seaports Ltd (KSPL) and Kakinada SEZ (KSEZ) Ltd allegedly through cheating, criminal intimidation, and conspiracy.

The stakes were reportedly acquired at an extremely low price in favour of Aurobindo Realty, since renamed as Auro Infra.

Apart from Vijaysai and Vikranth, the FIR, registered by the Andhra Pradesh CID, also names Sarath Chandra Reddy, director of Aurobindo Pharma.

Kakani Govardhan Reddy, senior YSRCP leader, has denied the allegations terming it "political vendetta" behind the action against his party colleagues.

Vijayasai Reddy, reacting to the FIR against him, said it was another cheap attempt of the state government headed bhy chief minister N Chandrababu Naidu to divert attention from real issues plaguing the state.

A complaint filed on Monday by Karnati Venkateswara Rao, chairman and managing director of KSPL, states that his family-owned firms’ stakes of 41.12 per cent in KSPL and 48.74 per cent in KSEZ estimated to be worth over Rs 3600 crore was acquired in 2020-21 for little over Rs 500 crore. The complaint also alleged that Vikranth Reddy, who approached Rao "asking" him to part with the shares, claimed that the "transaction was being done for former Chief Minister Y S Jagan Mohan Reddy", news agency PTI reported.

Govardhan Reddy, at a press conference, called the share transfer as a transaction between two private persons. “So it is clear that this is a part of political vendetta, part of the game being played by (CM) Chandrababu Naidu. If they (Aurobindo) wanted to acquire, they could have acquired the entire stake and taken over the control of the port. Why only part stake," he asked.

Meanwhile, Aurobindo Pharma on Wednesday said the firm was in no way connected with the ownership or operations of Kakinada Seaports and Kakinada SEZ including Auro Infra Private Limited. The declaration was made in an exchange filing on Wednesday.

"In this regard, we would like to clarify that Aurobindo Pharma Limited or its subsidiaries are in no way connected with the ownership or operations of Kakinada Seaports Limited and Kakinada SEZ Limited including Auro Infra Private Limited," it said.

Rao alleged he was told that if he did not agree to the transfer of shares, then there would be a "spate of criminal cases and vigilance enquiries leading to his arrest and other family members".