Hyderabad: The declaration by YS Jaganmohan Reddy that he has assets worth Rs 391 crore, compared to Rs 61 crore in 2009, has kicked off a political storm. Reddy has also declared that his wife has assets worth Rs 55 crore, up from Rs 16.09 crore that she had in 2009.
Reddy, son of former Andhra Pradesh chief minister YS Rajasekhara Reddy, made the mandatory declaration to the Election Commission (EC) he prepares to stand for election from the Kadapa Lok Sabha. His earlier declaration was made in 2009 when he successfully contested from the same seat.
Jagan has also declared liabilities of Rs 2.4 crore while his wife has claimed liabilities Rs 3.3 crore. This means Jagan's net assets stand at Rs 388.33 crore, having grown more than six times in just two years, while Bharathi's net assets are at about Rs 47.27 crore, a three-fold increase.
In May 2009, Jagan contested as a Congress candidate from Kadapa, while father YSR Reddy went on to win a second term as AP chief minister. YSR Reddy died in a helicopter accident in September 2009. Late last year, Jagan quit the Congress, which also meant his resignation as MP. Earlier this year, he floated the YSR Congress party.
If elected, Jagan's new declaration would make him the richest MP in India.
There are have been allegations that Jagan benefited from several crucial decisions made when YSR Reddy was the chief minister, particularly in the allotment of thousands of acres of land to SEZs and other private developers.
Yet, as of now, Jaganmohan's opponents are not going overboard in their criticism, perhaps with the intention of seeking the EC's intervention on Jagan undervaluing his assets. Sources said that Jagan's declaration does not list many of his other assets.
"Imagine a person with Rs 400 crore not having a car," a Congress leader quipped.
One of the key non-disclosures being pointed out is about his media operations. Jagan owns Sakshi, a Telugu daily, and Indira Television, which manages the Telugu news channel Sakshi. The media establishment has not been valued nor included in the list of assets.
Similarly, there are also questions about the non-disclosure of the profits Jagan made by selling 51 per cent of his holding in Bharathi Cements to the French major Vicat. According to the transaction details, Jagan is believed to have made about Rs 1,598 crore by selling majority holding in Bharathi Cement.
Interestingly, the residual of his holding in the cement company too has been calculated at the face value while the Vicat deal pegged the value of each share at about Rs 671 crore.
He is also believed to possess properties in Bangalore and Hyderabad, valued at Rs 400 crore and Rs 50 crore respectively.
DL Ravindra Reddy, the Congress's candidate from Kadapa for the upcoming elections, alleged that several other properties have not been declared by Jagan. "The (Jagan's) declaration speaks for itself. This election is going be a battle between integrity and corruption," he said, adding that Jagan was penniless in 1999.
Meanwhile, the Congress is saying that Jaganmohan should explain to the people how he manage to acquire so much wealth. "With this affidavit, the entire state is shocked and people have their doubts on how he got so much property in such a short time," Congress spokesman Tulsi Reddy said.
Incidentally, a state minister has even approached the Andhra Pradesh high court, seeking a probe into Jagan's wealth.
The TDP has termed as "meager" the assets declared by Jagan and alleged that he was hiding much more wealth. Party general secretary Varla Ramaiah claimed that two houses of Jagan in Hyderabad and Bangalore alone were worth Rs.450 crore.
"Even if one goes by his latest affidavit, his assets have gone up 400 times in only six years. No Indian industrialist has made such a huge wealth in a short span of time," said Ramaiah.