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Sunday, 9 February 2020

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VIJAYAWADA: Investigating the complaint of insider trading in Amaravati by former ministers P Narayana and Pratipati Pulla Rao, the Crime Investigation Department (CID) has found that 797 white ration card holders bought 761 acres of land in Amaravati in 2014-15. The open market value of this land is estimated to be around Rs 220 crore, officials said, adding that other agencies, such as the Income Tax (IT) department and the Enforcement Directorate (ED), may join the investigation to probe the allegations of tax evasion and money laundering.

“While investigating the transactions done in 2014-15, including those of assigned land, we came across records which revealed that 797 white ration card holders bought 761 acres of land in Amaravati,’’ CID Superintendent of Police Dasari Mary Prasanthi said, adding that the total registration value of this land is around Rs 40 crore, while the market value would run into several hundred crores.

Higher officials of the CID have written to the IT department and the ED asking them to probe the possibility of tax evasion and money laundering and take action as needed, Mary Prasanthi said. “Our team is now looking into whether these white ration cardholders who bought land had the financial capability to do so. If they did, possessing white ration cards would be a crime. If they didn’t have the financial capability, we want to identify the benamis behind them,’’ the SP added.
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CID sleuths further found that some of these persons did not even have a PAN. Besides, most of the land-purchase transactions done by the white ration cardholders were in cash, indicating that the buyers may not have declared their income and were evading tax. The government, which earlier announced that it would order for a Central Bureau of Investigation (CBI), Lokayuktha or CID probe, is said to have decided to take up the investigation into the alleged insider trading based on individual complaints from aggrieved farmers.

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The YSRC government earlier alleged insider trading of 4,070 acres of land between July 2014 and December 2014, after information about the location of the capital was allegedly leaked to some TDP leaders by those in power. The issue also came up for discussion in the ongoing State Assembly session and a resolution was passed seeking a detailed probe into the allegations.

Manipulation of boundaries of capital area to suit the landholdings of certain persons

Certain people who were members of the TDP or their relatives acquired huge pieces of land within or near the designated capital city. This was one of the reasons for locating the capital area as per the AP CRDA Act, 2014. To favour these landholders, the government manipulated the boundaries of the capital area after the initial design was made on December 30, 2014

Prominent persons Involved

Location of capital city to suit vested interests and insider trading of land

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Certain individuals, having white ration cards meant for low-income families, acted as benamis and were involved in land transactions in the capital area on behalf of the original beneficiaries.

Irregularities in land allotment

The government allotted 850 acres (July 2016 - December 2017) to five private allottees for establishment of universities and healthcare institutions before formulation of uniform policy.

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