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.