Allegations surfaced that YSRCP government officials planned to transfer stake to KIHL for smuggling PDS rice through Kakinada port. Reports also claimed KIHL chairman KV Rao was physically tortured to force his agreement to the transfer
Published Dec 03, 2024 | 8:29 PM ⚊ Updated Dec 03, 2024 | 8:29 PM
Kakinada port (kakinadaseaports.in)
The Andhra Pradesh state government has lodged a complaint with the CID to inquire into how the the YSRCP, when it was in power, had forced the Kakinada Infrastructure Holdings Limited (KHIL), promoters of Kakinada Sea Port Limited (KSPL), t0 transfer 41.12 percent stake of the port to Aurobindo Realty and Infrastructure Ltd in September, 2020.
The complaint was lodged by KV Rao, Chairman of the Kakinada Infrastructure Holdings Limited (KIHL).
There were allegations that those in the YSRCP government had planned to ensure transfer of stake to KIHL to facilitate smuggling of PDS rice out of Kakinada port. There were also allegations that chairman KV Rao was subject to physical torture to make him agree to the transfer.
The then government had allegedly made Rao fall in line by telling them that there were several grey areas in audit reports of the sea port’s business and that the management had bent several customs and excise rules. The government had thus forced the KIHL to undersell its stake to Aurobindo Realty.
It was said that no one had the courage to raise the issue, afraid of the then Chief Minister YS Jagan Mohan Reddy. Rao also did not come forward to lodge a complaint. The Kakinada Sea Port was estimated to be worth Rs. 4,068 crore of which 41.12 percent share translated to Rs. 1,672 crore. But, it is said Rao was paid less than its actual value.
Aurobindo Pharma, promoters Aurobindo Realty and Infrastructure, belongs to P Rohit Reddy, son in law of Rajya Sabha member V Vijayasai Reddy.
Now that KV Rao has lodged a complaint with the CID, the details of how the transfer of the stake took place are likely to come out.
Chief Minister N Chandrababu Naidu said that Aurobindo had ensured transfer of stake under threat and force. “Taking away properties of others using force was the hallmark of Jagan Mohan Reddy government,” he said at a meeting with Andhra Pradesh deputy Chief Minister Pawan Kalyan. The Jana Sena chief on 29 November made an inspection of the Kakinada Sea Port and seized PDS rice meant for export to Africa.
(Edited by Ananya Rao)
