N Prasad of Matrix Lab arrested for sweetheart deal with Jagan Reddy
Nimmagadda Prasad alias Matrix Prasad, touted as entrepreneur with a golden touch in the pharma industry, has been arrested by the Central Bureau of Investigation (CBI) in the alleged disproportionate assets case involving YS Jaganmohan Reddy. Mr Prasad allegedly invested Rs500 crore in different businesses of the Member of Parliament (MP) from Kadapa and president of YSR Congress.
The CBI, in its charge-sheet filed in the disproportionate assets case, alleged that Mr Prasad invested huge money in Jagan’s business ventures as a quid pro quo for the benefits he secured from the then YS Rajasekhara Reddy (YSR) government.
He is charged with investing Rs100 crore in Jagati Publications that publishes Sakshi Telugu daily, besides putting in another Rs244 crore in Bharati Cements and Rs200 crore in Carmel Asia, all floated allegedly by Jagan.
The then government headed by Jagan’s father (late) YS Rajasekhara Reddy allegedly allotted 15,000 acres of land in Prakasam and Guntur districts to Matrix Enport, the company owned by Prasad, for development of the Vadarevu-Nizampatnam Port and Industrial Corridor. Till date the project, initiated in 2007, has not made any progress. Under the YSR government, it was common in Hyderabad for politicians to sell stakes in companies controlled by them to big businessmen at a premium. In return for investing in these front companies, the businessmen got hold of natural resources (like iron ore) or land for infrastructure projects. This is exactly what seems to have transpired in this case too.
According to the CBI, three companies started by Mr Prasad bought shares in Jagan’s companies by paying huge premium. The companies, Gilchrist Investments Pvt Ltd, Alpha Villas Pvt Ltd and Alpha Avenues Pvt Ltd bought shares in Jagan’s companies at a premium of Rs350 apiece for a share with face value of Rs10. This is a quid pro quo deal, feels the CBI.
Read full article: Money Life
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