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   Jagan Case-Industrialist Nimmagadda Prasad Vanpic Land Cost
Hyderabad - Industrialist Nimmagadda Prasad too in trouble. The CBI that is probing the Vadarevu and Nizampatnam port and industrial corridor or Vanpic project scam as part of its investigation into the Jagan assets case, has come across startling facts about the way 28,000 acres of land was 'acquired' in Guntur and Prakasam district purportedly for setting up two ports in these districts .

This acquisition was done in a deceitful manner . By allowing cash payments to farmers, the officials themselves have ensured that no evidence of the transactions is available on paper, the CBI's remand report said.

CBI in an alleged disproportionate assets case involving Kadapa MP Y S Jaganmohan Reddy, has exaggerated the land acquisition cost of Vanpic Project to the tune of Rs 300 crore, the CBI claimed on Wednesday.

Seeking a 14-day police custody of Prasad, who was today remanded in judicial custody by a CBI special court here till May 30, along with senior bureaucrat K V Brahmananda Reddy, the probe agency alleged that the Concession Agreement signed (for execution of Vanpic project) was not in tune with the Cabinet approval and contained several grave errors

In its police custody petition, the CBI said during December 2007-January 2008, Prasad incorporated Matrix Enport Holdings Pvt Ltd and in February 2008, the Government of RAK (Ras Al Khaimah) addressed the then Andhra Pradesh government for creation of the proposed Vodarevu and Nizampatnam Port Projects (Vanpic) on Government-to-Government basis.

The CBI collected material from the state government officials about the deviations that were found in the Vanpic deal contrary to the concessions extended to Krishnapatnam and Gangavaram ports. Some of the deviations are that the concession period was extended by the state beyond the stipulated 33 years. Even in this concession agreement, the word 'mutual consent' was missing. Dilution of equity was allowed after five years of commencement of agreement date. Here the deviation is that this should have been after five years of commercial operations. Vanpic was also exempt from paying concession fee to government if it failed to generate net profit. As per norm this should have been 'gross profit' .

On July 7, 2008, Brahmananda Reddy, who had earlier worked with the state's ports, investment and infrastructure wing as its special secretary, and Prasad signed the Concession Agreement on behalf of the Andhra government and 'Vanpic Ports Pvt Ltd (SPV) respectively.

Investigation, however, revealed that the said agreement signed was not in tune with the Cabinet approval, the CBI said in its police custody petition, adding that Vanpic Projects Pvt Ltd had so far cornered about 13,000 acres of land in the Vanpic Project area.

Tags - Industrialist Nimmagadda Prasad, Industrialist, Industrial Corridor, Matrix Prasad, Jagan Reddy, Jagan Mohan Reddy, Disproportionate assets case, Hyderabad

Wed 16 May, 2012,10:09:24 PM
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