By S A Ishaqui

Hyderabad, Nov 14: Ordering one of its most comprehensive inquires, the AP high court on Monday ordered the CBI, the Enforcement Directorate, the state police and the state government to inquire into the alleged acts of “indulgence’ Telugu Desam president N. Chandrababu Naidu during his tenure as chief minister.
The court asked the agencies to submit separate reports of the inquiries within 90 days.
A division bench of acting Chief Justice Ghulam Mohammed and Justice Nooty Ramamohana Rao of gave the interim order while admitting a plea by Ms Y.S. Vijayalakshmi, wife of then chief minister Y.S. Rajasekhar Reddy and mother of YSR Congress leader Jaganmohan Reddy.
The former chief minister and his family members and his associates now face probe under the Prevention of Corruption Act, 1988, and Money Laundering Act, 2002. The investigation agencies will look into the allegations against the TD chief in respect of allotment of lands, grant of licenses, and decisions which were taken by him as chief minister. The agencies will also probe Mr Naidu’s actions with regard to disinvestment and in that process allegedly acquiring wealth which was disproportionate to his known sources of income.
The order covers 15 family members and friends of Mr Naidu, including his wife Bhuvaneswari Devi, son Lokesh, the family-run Heritage Foods and Mr Abobila Rao alias Billy Rao of IMG Bharata, media baron Ch. Ramoji Rao and his company Ushodaya Enterprises Pvt Ltd, and Mr Yelamanchili Satyanarayana Chowdhary alias Sujana Chowdhary,
Others whose affairs will come under the scanner include V. Nagaraja Naidu, a distant relative of Mr Naidu, Madhucon Sugar and Power Industries Ltd represented by its founder Nama Nageswara Rao, Lok Sabha member, Maganti Rajababu alias Murali Mohan, film actor-turned-realtor, Karnati Venkateswara Rao, chairman of Kakinada Sea Ports Ltd, and Chintakunta Munuswamy Ramesh alias C.M. Ramesh, chairman of Rithwik group of companies.
The petitioner, Ms Vijayalakshmi, alleged that Mr Nadu had amassed wealth through illegal means and had misused his position as chief minister.
The bench pointed out, “We have bestowed our anxious consideration to the various statements of facts and the legal principles on the subject. We are of the opinion that the petitioner has made out a case of misuse and or abuse of power and also acts of indulgence shown by the former chief minister, warranting admission of this petition.”

Y S Vijayalakshmi’s petition will spread net wide

By S A Ishaqui
Hyderabad, Nov 14: The business affairs between Mr. Chandrababu Naidu with media baron Ch. Ramoji Rao and Nimesh Kampani, a close aide of Mukesh Ambani, will come under the scanner following the AP High Court order directing a probe into the former chief minister.
Ms Y.S. Vijayalakshmi’s petition, which was admitted by the High Court, alleged that the duo enjoyed government benefits when Mr. Naidu was Chief Minister. Ms Vijayalakshmi alleged that Mr Naidu had not taken any measures to protect state’s interest; instead, he used Mr. Rao as a conduit to generate wealth for himself and for the media baron. In the process, Mr. Naidu ignored advice tendered by senior officials, the plea said.
The petitioner alleged that Reliance Industries, which was granted exploration rights in the K-G basin, had helped itself to a whopping amount of wealth and as a quid pro quo helped TD chief Chandrababu Naidu and Mr Ramoji Rao to illegally amass wealth.
The petition alleged that Ushodaya Enterprises Pvt Ltd, owned by Mr. Ramoji Rao and his family, was in need of Rs 2,600 crore to repay investors and that two associates of Mukesh Ambani had floated six companies in quick succession between December 2007 and January 2008 at the same address at Worli, Mumbai, where Reliance has its corporate office. The industrial house diverted Rs 2,604 crore to the accounts of the newly-floated companies, according to the petition.
Two of those companies, Equator Trading Enterprises Ltd and Anu Trading, entered into an agreement with Mr Ramoji Rao and Ushodaya to divert the money in the guise of acquiring shares in Ushodaya. The petition alleged that at that time Ushodaya was facing a loss of Rs 59.19 crore. But Equator and Anu Trading had picked up shares of the loss-making company, valued at Rs 100 each, at a whopping premium of Rs 5,28,630 per share.
Ms Vijayalakshmi said that these investments were done through Nimesh Kampani, a close aide of Mukesh Ambani of Reliance. The petitioner contended that there were gross financial irregularities committed by Mr. Ramoji Rao and that there is a tacit understanding between Chandrababu Naidu and him, which deserves to be investigated thoroughly.

Quo warranto hearing put off till Nov. 9 : MLA Venugopala Chary filed Quo Warranto against N. Kiran Kumra Reddy

By S A Ishaqui
Hyderabad, Nov 2:A division bench comprising acting Chief Justice Ghulam Mohammed and Justice Nooty Ramamohana Rao of the AP High Court on Wednesday adjourned the hearing on a petition for issuance of a Writ of Quo Warranto against Mr N. Kiran Kumar Reddy to show under what constitutional authority he holds the office of the Chief Minister, to next Wednesday.

The petitioner, Mudhole MLA S. Venugopala Chary had on Tuesday filed the plea, saying that Mr Kiran Kumar Reddy and his government lacked majority support in the Legislative Assembly. Mr. S. Ramachandra Rao, senior counsel arguing for the petitioner, citing the Apex Court directions in Ms Jayalalithaa’s case, contended that writ of quo warranto is maintainable against the Chief Minister.

He argued that the Union of India has a duty under Article 355 of the Constitution to ensure that the government of every state is carried on in accordance with the Constitution. “Despite the said constitutional mandate, the Union of India failed to act to ascertain or rebut the question whether Mr. Kiran Kumar Reddy's government has necessary legislative confidence or not,” he wondered.

Terming the Chief Minister as usurper, the senior counsel contended that the advocate- general had no right to defend the Mr Kiran Kumar Reddy in this case. The CM has to defend his case on his own or through a counsel, the petitioner said. Justice Ramamohana Rao pointed out that if the Chief Minister filed an affidavit before the court by claiming that he had a support of 148 MLA's to run the government, what would be next?

The counsel replied that the affidavit was not enough to close the case; the court can direct the Chief Minister to prove his majority on the floor of Assembly.

Madan Bhimrao Lokur is new CJ of AP High Court

By S A Ishaqui

Hyderabad, Nov 2 : Justice Madan Bhimrao Lokur will take charge as Chief Justice of Andhra Pradesh High Court by November 15. He is currently the Chief Justice of Guwahati High Court. President Pratibha Patil’s transfer orders to this effect reached Hyderabad on Wednesday evening.

Justice Lokur’s meteoric rise to the top

Born on December 31, 1953, Justice Lokur studied at Modern School, New Delhi and St. Joseph's Collegiate in Allahabad. He completed his graduation in History (Hons.) from St. Stephen's College, Delhi University in 1974. After obtaining his LL.B. degree from Delhi University in 1977, he enrolled as an Advocate-on-Record in the SC in 1981 and appointed as Central Government Sta-nding Counsel in Dec. 1990. He continued in the post till December 1996. In February 1997, he was designated as Senior Advocate and was appoi-nted as Addtl. Solicitor-General on July 14, 1998.

Justice Lokur was appointed as Additional Judge of Delhi High Court on February 19, 1999, and became a permanent judge on July 5, 1999. He was elevated as the CJ of Guwahati High Court on June 24, 2010.

Andhra Pradesh High Court adjourns hearing on Naidu’s wealth

By S A Ishaqui

Hyderabad, Nov 1:A division bench comprising acting Chief Justice Ghulam Mohammed and Justice Nooty Rama-mohana Rao of the AP High Court on Tuesday wondered whether the share value of a company could be as high as Rs 5 lakh.

The bench was hearing a plea against the TD chief, Mr N. Chandrababu Naidu, by Ms Y.S. Vijayalakshmi, wife of late chief minister, Dr Y.S. Rajasekhar Reddy, seeking a probe into alleged amassing of wealth by Mr Naidu, through illegal gratification when he was the chief minister of the state. Mr Sushil Kumar, senior counsel from the Supreme Court, appearing for the petitioner explained to the court about various deals including land allotment to IMG Bharata, Krishna Godavari Basin gas supply agreement with Reliance and the role of media baron Mr Ch. Ramoji Rao in finalising the gas deal.

He said the IMG deal was finalised within three days of incorporating the IMG Academy without referring it to the Cabinet. The successive government ordered a CBI probe into the deal and the Centre did not accord its consent till date on the decision. He alleged that in consideration for the favour done by Mr Naidu in allowing the state’s KG Basin claim to be brushed under the carpet, the Reliance group facilitated the payout of Mr Ramoji Rao’s debts to his depositors.

He said one of the close associates of the Reliance Group, Mr Nimesh Kampani, extended himself in ensuring that Mr Ramoji Rao would be bailed out. Within a short span of 37 days between December 2007 and January 2008, six “shell companies” were floated on three addresses, which are shown as Sriram Mills Compound, Worli, which is the official address of Reliance Industries Limited. Reliance diverted Rs 2,604 crores of its shareholders money through the shell companies to Mr Kampani’s Equator Trading India Limited and Chajlani’s Anu Trading.

According to the Form 2, filed by Ushodaya Enterprises with the Registrar of Companies, shares allotted to Equator Trading Enterprises Ltd are shown at a premium of Rs 5,28,630 per share. The senior counsel contended that obliviously it must be a pay off.

Referring to the growth of Heritage Food owned by Mr Naidu’s family, the senior counsel contended that the material which they produced before the court was sufficient to order a preliminary probe against the irregularities committed by Mr Naidu and his associates when they are in power. He urged the court to order a preliminary inquiry by the CBI against TD chief. The court adjourned the hearing.

Andhra Pradesh High Court to take up plea against Chnadrababu Naidu today

By S A Ishaqui
Hyderabad,Oct 31 : The AP High Court will hear on Tuesday Y.S. Vijayalakshimi’s plea against Telugu Desam chief N. Chandrababu Naidu seeking a probe by the CBI into the alleged amassing of wealth by the latter when he was the chief minister.

A division bench comprising acting Chief Just-ice Ghulam Mohammed and Justice Nooty Ramamohana Rao will hear the case.

Ms Vijayalakshmi had contended that Mr Naidu’s acts in allotting lands and granting benefits and exe-mptions to several institutions and individuals as the chief minister would attract provisions of various penal laws.