Andhra CID issues lookout circular against YSRCP MP for forcible acquisition of Kakinada port, SEZ

The Crime Investigation Department (CID) of the Andhra Pradesh police on Thursday issued a lookout circular (LOC) against YSR Congress party general secretary and Rajya Sabha MP V Vijayasai Reddy in connection with the alleged forcible acquisition of majority of the shares in Kakinada Sea Ports Limited (KCPL) and Kakinada Special Economic Zone from the original promoters during the previous Jagan Mohan Reddy government, people familiar with the matter said.

Apart from Sai Reddy, lookout circulars were also issued against Y Vikranth Reddy, son of another YSRCP MP YV Subba Reddy, and Aurobindo Pharma promoter Penaka Saratchandra Reddy, who happens to be a close relative of Sai Reddy.

A senior official of the CID said that the lookout circulars were issued to pre-empt the accused from fleeing abroad to avoid the investigation into the alleged acquisition of shares worth ₹3,600 crore in Kakinada Sea Ports Limited and Kakinada SEZ forcibly from Karnati Venkateswara Rao (KV Rao), the original promoter of the companies, heading the Kakinada Infrastructure Holdings Pvt Ltd (KIHPL).

On Wednesday, the CID registered a case against Sai Reddy and others on the charges of forcibly transferring 41.12% stake in Kakinada SeaPorts Limited (KCPL) from KIHPL to Auro Infra Pvt Ltd (previous called Aurobindo Reality and Infrastructure Private Limited).

Rao met CID chief Ravi Shankar Ayyannar on Monday and lodged a complaint in this regard.

According to the FIR, which was seen by HT, Rao alleged that he was coerced by Sai Reddy and others to transfer the shares in the name of Auro Infra. He said the accused had threatened him with filing false cases against him and his family, arresting them, shutting down their businesses, and forcing him to transfer shares worth ₹2,500 crore in Kakinada Sea Ports Limited for ₹494 crore and shares worth ₹1,109 crore in Kakinada SEZ for ₹12 crore to the Aurobindo Group.

The CID booked the accused under various sections of IPC, including criminal intimidation (506), extortion (384), cheating (420), abetment (109), forgery (467), criminal conspiracy (120B), and organised crime (BNS 111).

Meanwhile, Aurobindo Pharma, the flagship company of the Aurobindo group, denied having any links with the case. In their filings with the stock exchange on Wednesday, a company spokesperson clarified that Aurobindo Pharma Limited, or its subsidiaries are in no way connected with the ownership or operations of Kakinada Seaports Limited and Kakinada SEZ Limited, including Auro Infra Private Limited.

YSR Congress party also strongly condemned the cases filed against Sai Reddy and others. Senior YSRCP leader and former minister Kakani Goverdhan Reddy said that the Kakinada port issue was being raised only to divert the people’s attention from the constant failures of the TDP-led coalition government in the state.

Reddy said the Naidu government had been digging up old cases to fix political adversaries and the Kakinada Port case is one such example. “The port was developed during the regime of YS Rajasekhar Reddy, father of Jagan. It was taken over by KV Rao during the TDP regime,” he added.

The YSRCP leader said if the takeover of Rao’s stake was hostile, Auro Infra would have acquired the entire stake and not just 41%. “The coalition government is conspiring to fix the Aurobindo group in the CID case,” he said.