In a major development in a long-standing financial probe, the Enforcement Directorate (ED) has provisionally attached assets valued at ₹404.7 crore belonging to former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy and Dalmia Cements (Bharat) Limited (DCBL). The attachments are part of a 14-year-old money laundering case linked to quid pro quo investments and alleged misuse of political power.

The ED’s action includes the attachment of shares worth ₹27.5 crore owned by Jagan Mohan Reddy and land parcels valued at ₹377.2 crore associated with Dalmia Cements. These steps follow a detailed investigation carried out in coordination with the Central Bureau of Investigation (CBI).

ED’s Findings and Attachment Details

The ED submitted the provisional attachment order on March 31, 2025, with Dalmia Cements acknowledging receipt on April 15, 2025, according to a Times of India report. The initial value of the land when purchased was ₹377 crore, which has reportedly appreciated to ₹793.3 crore, as stated by the company.

In the case of YS Jagan Mohan Reddy, the shares attached are held across Carmel Asia Holdings Limited, Saraswati Power and Industries Private Limited, and Harsha Firm. The attachment is linked to a case filed by the CBI in 2011, concerning investments and alleged irregularities in cement companies operating in Andhra Pradesh.

Background of the Money Laundering Case

The core of the case revolves around Dalmia Cements’ ₹95 crore investment into Raghuram Cements Ltd, a company linked to Jagan Reddy and the YSR Congress Party. This investment was allegedly returned with profits via hawala channels and unrecorded cash transactions, which the ED and CBI claim were forms of illegal gratification to gain undue benefits from the state government during Reddy’s term.

According to ED findings:

• Shares of Raghuram Cements were later sold to French cement giant PARFICIM for ₹135 crore.

• Between May 2010 and June 2011, approximately ₹55 crore was allegedly transferred to Jagan Reddy in cash via hawala operators.

• The transactions are corroborated by materials seized by the Income Tax Department during searches in New Delhi.

The CBI’s original chargesheet, filed in April 2013, already included Jagan Reddy, auditor V Vijaya Sai Reddy, and Puneet Dalmia among the accused under the Indian Penal Code (IPC) and Prevention of Corruption Act. The ED’s latest move underlines renewed legal scrutiny and possible revival of proceedings based on updated financial trails and forensic audits.

Political and Legal Implications

This move comes at a sensitive time, as Jagan Mohan Reddy continues to hold significant influence in Andhra Pradesh politics as the YRSCP chief. His party and legal representatives are likely to contest the ED's findings, potentially challenging the attachment order before the Adjudicating Authority under the PMLA (Prevention of Money Laundering Act).

Meanwhile, Dalmia Cements (Bharat) Limited, one of India’s major cement manufacturers, may face a prolonged legal battle to defend its land acquisition and past investments. The company has maintained that all investments were legitimate and commercially driven.

Role of Hawala Transactions

One of the most serious allegations made by investigators is the use of hawala channels to route back proceeds from share sales as cash payments to Jagan Mohan Reddy. This establishes the claim that the initial ₹95 crore investment was not a commercial decision but a bribe or illegal payoff for favours granted during his administration.

The ED claims to have matched financial transactions, bank records, and income tax documents to build a comprehensive case of money laundering, involving layering of funds, benami holdings, and undisclosed cash movements.

Timeline of the Case

• 2009–2010: Investment made by Dalmia Cements into Raghuram Cements Ltd

• 2011: CBI registers FIR into quid pro quo investments

• 2013: Chargesheet filed under IPC and Prevention of Corruption Act

• 2025: ED attaches assets based on further investigation of financial trails

What Lies Ahead

Both Jagan Reddy and Dalmia Cements may now be required to respond to the ED’s provisional order within the stipulated legal timeframe. If the ED’s findings are upheld, the attached assets could be confiscated permanently, impacting the financial holdings of both parties involved.

This case adds to a growing list of high-profile money laundering investigations being aggressively pursued by Indian authorities. It also highlights how old cases with political and corporate implications are being reopened with fresh evidence and data analysis.

As of now, no official response has been issued by YSR Congress Party or Dalmia Cements regarding the ED action. The political fallout, especially with elections around the corner in Andhra Pradesh, could be substantial.

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