In a significant development in the ongoing investigation into disproportionate assets, the Enforcement Directorate (ED) has attached properties worth Rs 793 crore belonging to Dalmia Cement. The action comes in connection with alleged irregularities in the purchase of 417 hectares of limestone land in Andhra Pradesh's Kadapa district.
According to allegations, the deal resulted in undue financial benefits of around Rs 150 crore to former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy. Investigations suggest that Rs 95 crore was funnelled to Reddy through shares of Raghuram Cements, while the remaining Rs 55 crore was allegedly transferred via hawala channels.
Case traces back to 2013 CBI chargesheet
The Central Bureau of Investigation (CBI) had filed a chargesheet in 2013 against Jagan Mohan Reddy, accusing him of colluding with Dalmia Cement to illegally secure limestone leases. The ED's recent action stems from this chargesheet and falls under the Prevention of Money Laundering Act (PMLA).
The attached assets were officially seized on March 31, 2025. However, sources confirm that Dalmia Cement received the attachment notice only on the night of April 15. In its initial response, the company claimed that the land was purchased for Rs 377 crore, significantly lower than its current valuation.
Alleged role of YSR government
The ED’s probe indicates that the entire scam unfolded during the tenure of Jagan's father, the late Y.S. Rajasekhara Reddy, who served as the Chief Minister of Andhra Pradesh. The limestone leases were allegedly granted as a quid pro quo for investments made into companies associated with Jagan Mohan Reddy.
Hawala trail and frozen funds
According to the CBI, an additional Rs 85 crore was slated to be transferred to Reddy through hawala channels, but the transaction was halted following the registration of the case. The 2013 chargesheet named several individuals, including Jagan Mohan Reddy, Rajya Sabha MP V. Vijayasai Reddy, Dalmia Group’s Puneet Dalmia, former state minister Sabita Indra Reddy, IAS officer Laxmi, and others.
So far, the ED has filed a total of nine chargesheets in connection with Jagan Mohan Reddy’s alleged illegal assets, as it continues to uncover the web of money laundering and corruption that dates back more than a decade.
