CID Registers Case Against Vikrant Reddy, Vijayasai Reddy, and Aurobindo

The owner of Kakinada Infrastructure Holdings Private Limited, Mr. Karnati Venkateswara Rao (K.V. Rao), has filed a complaint with the Andhra Pradesh CID, alleging coercion and threats to forcibly take over his stakes in Kakinada Port and Kakinada SEZ. In his complaint to the Additional DGP of CID, K.V. Rao claimed that shares worth ₹2,500 crore in the port were undervalued and taken for just ₹494 crore, and shares worth ₹1,109 crore in the SEZ were taken for a mere ₹12 crore. Following this complaint, the CID office in Mangalagiri registered a case on Monday under various sections of the Indian Penal Code (IPC) including IPC Sections 506, 384, 420, 109, 467, 120(B), along with provisions of the Organized Crime Act (BNS 111).

Key Allegations by K.V. Rao
According to K.V. Rao, the issues began after Jagan Mohan Reddy became the Chief Minister. He alleged that the state government initiated an audit involving Chennai-based Sridhar & Santhanam and another Mumbai-based firm, falsely claiming that his company owed ₹994 crore to the government. Rao further alleged that YSR Congress Party MP Vijayasai Reddy called him and instructed him to meet Vikrant Reddy, the son of Y.V. Subba Reddy, who is Jagan Mohan Reddy's uncle.

When Rao met Vikrant Reddy, he was allegedly threatened to sell all his company shares to avoid his family facing jail time. Rao claimed that Vikrant Reddy stated the directive came directly from the Chief Minister. Under duress, Rao agreed to sell his shares, which were valued at ₹2,500 crore, for just ₹494 crore. Despite questioning the low valuation, Rao alleged that no one considered his objections.

He further alleged that property at Benz Circle in Vijayawada was also forcibly taken at below-market rates.

Kakinada SEZ and Aurobindo Case
Rao explained that he had been developing Kakinada SEZ in partnership with GMR since 1999, holding a 48.74% stake in the SEZ while GMR held the rest. The SEZ included 8,000 acres of land and shares in the port. Initially, Rao agreed to sell his stake to GMR for ₹400 crore, despite its market value being ₹1,104 crore. However, the deal was reportedly canceled under pressure from the Aurobindo Group. Rao alleged that Aurobindo forced him to transfer his entire stake for just ₹12 crore, threatening legal and criminal action against him if he refused.

Rao claimed that his company had an agreement to pay 22% of its income to the government, but alleged that the harassment began after the YSRCP government took charge in 2019.

Appeals Ignored by Jagan Mohan Reddy
K.V. Rao said he had even taken the issue to Chief Minister Jagan Mohan Reddy at his residence in Tadepalli. However, Jagan allegedly dismissed the matter, asking him to follow Vikrant Reddy’s instructions. Rao expressed frustration that no action was taken despite bringing the injustice to the CM’s attention.