HYDERABAD: A CBI court on Thursday granted the CBI a 10-day custody of industrialist Nimmagadda Prasad aka Matrix Prasad and IRAS officer KV Brahmananda Reddy for grilling in the YS Jagan Mohan Reddy’s alleged illegal assets case.The court, however, laid down conditions to the CBI that the accused be questioned from 9.30 am to 1.30 pm and 2.30 pm to 5.30 pm and in the presence of their advocates.Moreover, they should not be subjected to third-degree methods. The CBI can take custody of the accused at 9.30 am on Friday and has to produce them in the court at 10.30 am on May 28.The duo will be lodged at the Dilkusha Guest House during the custody period.After arresting the duo on Wednesday, the CBI filed a petition seeking custody of Prasad to `extract’ information about the role of public servants in the case. It also wanted to ascertain the final destinations/beneficiaires of Rs 300 crore shown to have been incurred on land acquisition. It told the court that Prasad had, apart from investing Rs 854.50 crore in Jagan’s companies as a quid pro quo, mediated with Maytas and other firms for investing their money in Jagan’s companies.He mediated for investment of Rs 70 crore by Indu Projects which was benefitted in the form of 8,800 acre land in Anantapur district for developing Lepakshi Hub.Maytas invested Rs 20 crore through Prasad after it had been awarded a Rs 120-crore road project. The CBI said Prasad invested in Jagan’s companies by purchasing their shares at a premium."Prasad purchased Rs 10 value share of Bharathi Cement for Rs 1,450. Similar is the case of purchase of shares of Caramel Asia, Jagathi Publications and others,’’ the CBI said. The prosecution argued that Nimagadda Prasad and Brahmananda Reddy conspired along with others to corner 13,000 acres of land as part of the Vadarevu and Nizamapatnam Port and Industrial Corridor (VANPIC) project.The IRAS officer had signed the concession agreement with Prasad, which was not in consonance with the Cabinet memorandum, the agency said. When the CBI counsel said Prasad had exaggerated the expenditure incurred on payment of compensation to farmers in lieu of lands acquired from them, principal special court judge A Pullaiah pointed out that the state government was not an aggrieved party since the investment was made by the government of Ras al Khaima.Arguing against the custody, the defence counsel contended that the CBI’s prayer be rejected since there was no separate petition filed for it. He also said the state government was not an aggrieved party in any way. Terming the arrest illegal, he said that no investor would come forward and invest in the state if entrepreneurs were harassed in this manner.Objecting to the CBI counsel’s claim that Prasad had been summoned eight times but he kept silent, the defence counsel said Prasad cooperated in every manner and had in fact appeared before the probe agency 13 times.
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