Jagan’s Pharma Connections : Deadly
South!
Aurobindo Pharma, Hetero
Drugs, Ramky Pharma , Trident Life Sciences & Matrix Laboratories are under
CBI scanner. Healthcare Industry stunned at South volcano.
Satya Brahma
Editor-In-Chief, Pharmaleaders Magazine
Andhra
Pradesh is historically known to be a tumultuous state with a notorious past of
brinkmanship, nepotism, political back-stabbing, and corruption & high
voltage dramatic shameful incidences. Chandrababu Naidu, the Ex CM of AP
backstabbed NTR & catapulted to power, Ram lingam Raju, the founder of
Satyam hit the headlines for wrong reasons & now Jagan Mohan reddy, the
maverick son of Late Dr Y S R Reddy is paying the price of building an empire
based on dubious steals & is counting his days in the prison amidst high
security, almost like Z Plus. CBI is grilling the media magnet cum politician,
the Chief of YSR Congress, Jagan Mohan Reddy & certainly Hyderabad is on
fire. With these south connections, now we are seeing many healthcare companies
getting directly or indirectly have been indulged in Jagan’s vast empire
seeking favours, getting unjustified market values for the land , alleged
partnership & many more startling stories that has stunned the country
writes Satya Brahma, Editor-In-Chief of
Pharmaleaders ( www.pharmaleaders.co.in ). “India is a land of billion opportunities;
it is also a land of endless possibilities & since Politics is art of
possible, all these connections sneak of a deep rooted connections as CBI has
filed a charge sheet saying Jagan allegedly received Rs 1,172 crore as bribes
from investors from wide spectrum of business communities in south including
healthcare players named above”..
What is wrong in getting political
favours in return with huge compliments in donating a hefty amount to the
politicians, when laws are broken to please a select few in healthcare
business, when the similar exercises are seen in other sectors across the
globe? In fact, if we look & scan all business empires, we will find strong
political connections says Satya while investigating the connections of
companies like Aurobindo Pharma, Hetero Drugs, Ramky Pharma & Trident
Life Sciences, Matrix Laboratories, presently
questioned by CBI in connection with unlawful dubious connections. In Fact,
Nimmagadda Prasad, better known as Matrix Prasad is arrested & still in
Jail while others have been out on bail.
In fact if we track our history,
the story goes back to the economic liberalization era post 1999 when major
reforms were charted, the than CM of AP, Chandrababu Naidu was also allegedly
involved in getting business community & striking a partnership, cut deals
to favour government allocations. The latest buzz in healthcare companies who
were named by CBI in their chargesheet, to my mind, are not surprising, given
the massive nepotism, found in CBI report, of a total of 72 Companies, being
framed.
The Company in news are very
prominent & successful in global healthcare business, while Aurobindo
pharma is big time in semi synthetic
penicillin market worldwide & is a global leader while Hetero Drugs is a
global player in Bulk Drugs. While Ramky Pharma is a knowledge pharma city
& Trident Life Science is a CRO, an extended arm of Aurobindo Pharma. All
the four outfits have been in public eye ever since CBI grilled the owners of
these companies alleged to have been in a favorable entry due to Jagan
connections.
Lets have a close look of these
Five Companies who are alleged to have been favored by Jagan.
Jagan received Rs 1,172 crore as bribes from investors: CBI
The
Central Bureau of Investigation (CBI) has disclosed that Y S Jaganmohan Reddy,
popularly known as Jagan, accepted Rs 1,172 crore from various investors as
bribe and in turn helped them get favours from the state government. The
favours are mainly land, mining leases and licences for new industries. Jagan,
Member of Parliament from Kadapa and late chief minister Y S Rajasekhara
Reddy’s son, was arrested by the investigating agency on May 27 in connection
with a disproportionate assets case. A CBI special court in Hyderabad on May 28
remanded him to judicial custody for 14 days. He will remain in the
Chanchalguda Central Prison till June 11. According to CBI, Jagan, president of
the YSR Congress Party, amassed huge wealth during 2004-2009, when his father
was the chief minister. Jagan’s declared assets were Rs 1.7 crore in 2004. It
shot up to Rs 77 crore in 2009 and then to a whopping Rs 356 crore in 2011. As
per the investigating agency, Jagan misused his father’s office to grant
favours to industries and individuals. In turn, they invested in Jagan’s
businesses including Sandur Power Company, Janani Infrastructure and Jagati
Publications which brings out Sakshi, a Telugu daily.
The
investigation into Jagan’s wealth by CBI started in August last year following
a direction by the Andhra Pradesh High Court. The court was acting on a
petition filed by a ruling Congress member of the legislative assembly P
Shankar Rao. CBI in its First Information Report (FIR) has named 73 firms and
individuals in connection with the case, apart from Jagan as accused number one
and his financial advisor V Vijay Sai Reddy as accused number two. A few
industries like Aurobindo Pharma, Hetero Drugs, Trident Life Sciences and Ramky
Pharma India Limited, Penna Group, India Cements and Dalmia Cements have also
figured in the chargesheets and the remand report submitted by the
investigating agency in the court. The individuals named in the chargesheets
include industrialist Nimmagadda Prasad, promoter of Vodarevu and Nizampatnam
Port and Industrial Corridor (Vanpic), Y Vijaya Lakshmi Prasad, general manager
of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and senior IAS
officer B P Acharya and G Venkataram Reddy, a former vice-chairman of
Visakhapatnam Urban Development Authority (VUDA). According to CBI, in many
instances the government–owned APIIC acquired cultivable land from farmers for
developing industrial parks and special economic zones, and then gave it to investors,
a quid pro quo for their investments in Jagan’s company. For instance, APIIC
gave 5,260 hectare (ha) in Guntur and Prakasam districts to Nimmagadda Prasad
for Vanpic project by doctoring the terms of the concession agreement. Prasad
had invested Rs 854 crore into firms owned by Jagan through his companies Alpha
Villas and Gilchrist Investments. Besides Vanpic, he was also given several
concessions under the Stamps and Registration Act, alleges CBI. Farmers who
lost their land-holdings to Vanpic are still protesting against forcible
acquisition of land. Prasad was arreasted by CBI on May 15.
Aurobindo and Hetero groups were
allotted more than 60 ha on lease at Rs 17.5 lakh a ha in the green industrial
park of APIIC at Jadcherla in Mahbubnagar without proper assessment of
requirement of land, says CBI. The transaction resulted in a loss of Rs
12.26 crore to APIIC as the rate fixed by the Price Fixation Committee of the
government ranged from Rs 37.5 lakh-50 lakh a ha. Around 12 ha of land at the
Export Promotion Industrial Park at Pashamylaram in Medak were transferred to
Trident Life Sciences Limited by falsely representing that it was a 100 per
cent subsidiary of Aurobindo Pharma. Otherwise, the deal was not allowed as per
APIIC rules. In another instance, Ayodhya Rami Reddy, promoter of Ramky Pharma
, which is implementing a pharma city over 971 ha in Visakhapatnam, wrongfully
gained around 370 ha, and made a gain of Rs 133 crore from selling this
plot. Ramky had invested Rs 10 crore in
Jagati Publications as a quid pro quo for the benefits it secured.