Jagan DA case: Relief to pharma companies

HYDERABAD: Wondering why an industrialist would lose Rs 29 crore for deriving benefit of Rs 21 crore from the state, an appellate tribunal, set up under money laundering Act provisions at New Delhi, has modified an attachment order by Enforcement Directorate with respect to pharma companies Hetero, Aurobindo and Trident. The ED had made this attachment in pharma companies’ chargesheet as part of its probe into Jaganmohan Reddy DA case.

ED had filed a case based on CBI case which said that YSR government in AP gave 75 acres of land to Hetero and Aurobindo at Jadcherla SEZ on lease and in lieu, they invested in Jagan’s companies. ED identified several properties of pharma companies and attached assets worth Rs 51crore. The companies challenged ED action before appellate tribunal, which found fault with ED action of terming unconnected assets of accused companies as proceeds of crime. It allowed the plea of Aurobindo, Hetero and Trident to defreeze attached assets on the condition that the amount equivalent to the worth of the attached assets would be deposited with the ED within 6 weeks. If they fail to do so, ED is free to proceed with further action.