CBI to freeze more Jagan accounts

HYDERABAD: Even as Kadapa MP YS Jagan Mohan Reddy is struggling to have the curbs on his bank operations lifted, the CBI on Thursday informed the CBI special court that it is searching for more accounts (of the companies) and would freeze them too. The court heard the arguments of the defence counsel and the CBI with regard to the petitions filed by Jagati Publications, Indira Television and Janani Infrastructure to unfreeze their accounts. The CBI, however, opposed the plea. After hearing both the sides, judge Pattabhirama Rao reserved the orders for May 14.Earlier, Jagati Publications counsel Uma Maheshwara Rao said the CBI had no evidence to show that the investments into the companies are proceeds of a crime. “Money comes and goes out of the account. We get nearly Rs 30 crore every month and we need nearly Rs 35 crore to run the daily,’’ he informed the court.“The investment that came into the company through shares include the contribution of non-tainted persons. It is a mixed pot of several contributors. At least some of them are not tainted. Can such an account be frozen?” he argued and alleged that the CBI is trying to throttle the company by dubious means. Uma Maheshwara Rao informed the court that the company had issued cheques for nearly Rs 3.13 crore and if they are dishonoured, the company would face grave consequences.On behalf of Indira Television, counsel V Surender Rao said the firm was not related to Jagati and said it was a totally malafide exercise of the CBI to invoke Section 102. He further said there were political reasons behind freezing the accounts.“See the timing of the order and the factual background. The ruling party in the state and at the Centre are politically opposed (to Jagan). He floated his own party and bypolls are nearing. After eight to nine months of probe, the CBI takes this action now. This is palpably malafide,’’ Surender Rao said. The counsel also said that he is ready to furnish a bond for the amount in the frozen accounts.Janani Infrastructure counsel said the CBI did not go for freezing bank accounts in 2G scam. “The bank accounts of service providers were not frozen. Otherwise, they would have crashed,’’ he said.In his counter, deputy legal advisor B Ravindranath said, “The share investment stood at Rs 1,172 crore, while the balance sheet of the company as on March 31, 2011, shows the company had cash balance of only Rs 249 crore. The entire money will be used up if not frozen.’’Ravindranath further stated that Rs 139.68 crore had been invested by Jagathi Publications in Indira Television. “The ill-gotten money had been spent to develop Indira Television and it is also an accused in the case,’’ he said.Stating that the petitioners might take away the Rs 249 crore with them and close both the companies, Ravindranath said they (companies) have other accounts and can manage with them.