The Enforcement Directorate, ED questioned YSR Congress Party, (YSRCP) MP Vijayasai Reddy for six hours on Monday over allegations of forcibly taking valuable shares from KV Rao in Kakinada Sea Port Limited, KSPL and Kakinada SEZ.

ED questions the MP over these 25 key questions

The FIR focused on the Andhra Pradesh CID based on the complaint filed by KV Rao. ED officials posed 25 questions, which focused on the conspiracy to forcibly seize shares worth ₹3,600 crore. Some of the key issues included:

  • Phone Call to KV Rao: ED questioned why Vijayasai Reddy called KV Rao in May 2020 to discuss a meeting with Vikrant Reddy (son of Y.V. Subba Reddy) and Penaka Sarathchandra Reddy (Aurobindo Group owner) regarding KSPL.
  • Role of PKF Sridhar & Santhanam LLP: ED investigated whether the forensic audit firm, allegedly linked to Reddy, was part of a scheme to manipulate financial records.
  • Allegations of Irregular Transfer of Shares: There were queries regarding the mismatch in audit reports on tax evasion and the alleged transfer of a 41.12% stake in KSPL to Aurobindo.

Reddy's responses were vague and non-committal, as his statement was formally recorded during the session.

Denial of Allegations

Reddy also stated that he had never heard of KV Rao, and the said person has no prior connection with him. He has further denied association with PKF Sridhar & Santhanam LLP, citing government officials in making the said firm audit KSPL.

In connection with Penaka Sarathchandra Reddy, he confessed to have some family relation but denied business relationship. Likewise, he admitted that he did not have a business connection with Vikrant Reddy.

When asked about potential money laundering, Reddy supposedly gave evasive answers, feigning ignorance of the details.

Reddy's Media Statement

Speaking to the media after the inquiry, Vijayasai Reddy reiterated his innocence. He said he was unaware of KV Rao's allegations till a lookout notice was issued against him. Reddy emphasized that he was prepared to prove his innocence and went on to even suggest that KV Rao take an oath before Tirumala Venkateswara Swamy to substantiate the allegations.

Some of the key points in his statement include:

  • Challenge to Authorities: Reddy said he had challenged the immigration authorities and the AP CID in the Delhi High Court, with arguments scheduled for January 15.
  • Call Data Verification: He invited an investigation of May 2020 call records to confirm he never contacted KV Rao.
  • Defamation Counterclaim: Reddy vowed to file a defamation case against KV Rao if the allegations were proven false.

Ongoing Investigation

The ED investigation was described as the first call for interrogation based on such accusations by Reddy. He could not deny a few of his financial dealings of 22 years ago, though he expressed a willingness to assist the inquiry, if the explanation was sought.