Assets worth ₹793 crore of Dalmia Cements temporarily seized in Jagan’s illegal assets case

In a significant development in the illegal assets case involving YSRCP President Y. S. Jagan Mohan Reddy, the Enforcement Directorate (ED) has temporarily seized assets worth ₹793.34 crore belonging to Dalmia Bharat Cements Limited (DBCL). This action follows a Central Bureau of Investigation (CBI) case registered in 2011 concerning DBCL’s investment in Bharathi Cements, a company linked to Jagan Mohan Reddy.

The ED confirmed that the seizure order was based on the CBI case, which alleged that Dalmia Cements made significant investments in Bharathi Cements under questionable circumstances. Among the seized assets is a parcel of land in Hyderabad, purchased earlier by DBCL for ₹377.26 crore.

Critics have alleged that during the tenure of Y. S. Rajasekhara Reddy as Chief Minister, his son Jagan Mohan Reddy leveraged his father’s political influence to secure substantial equity and loan support for Bharathi Cements. According to the allegations, Jagan and his associated companies acquired 4.5 crore equity shares of Bharathi Cements at a nominal price of ₹10 per share.

In contrast, other investors, including Dalmia Cements, India Cements, and individuals like Matrix Prasad, reportedly purchased shares in Bharathi Cements at significantly higher prices ranging from ₹94 to ₹175 per share. Notably, Dalmia Cements also purchased an additional 200,000 shares at a premium price of ₹1,440 per share. These irregularities raised suspicions and led to the registration of a money laundering case by the CBI.

Based on these charges, the ED has now issued orders to temporarily attach the identified DBCL assets, linking them to the ongoing investigation into financial misconduct and suspected money laundering activities.