Monday, August 22, 2011

Jagan inquiry: 26 Congress MLAs resign


Hyderabad:  The Congress has another crisis of sorts to contend with in Andhra Pradesh, where it is in power. 26 of its MLAs have resigned from the Andhra Pradesh Assembly over the investigation against Jagan Mohan Reddy. While the Congress still holds a majority of the 294 seats, the revolt will affect party morale and fuel the notion that Jagan Mohan exerts significant pull over its partymen in his home state.

Apart from 26 Congress MLAs, two legislators of the Telugu Desam Party (TDP) and one of Praja Rajyam Party (PRP) have also resigned taking the total number of resignations to 29.

What has fuelled the en masse resignation is the fact that Jagan's father, popular Congress leader YSR Reddy, has been named in the formal complaint filed against Jagan Mohan by the CBI. 

"They mentioned in the FIR saying conspiracy by YSR. When he was ruling, the Prime Minister and Sonia Gandhi said he is a great leader, why suddenly after his son left the party, he became a criminal conspirator?" Srikanth Reddy, a Congress MLA said.

The investigating agency is trying to prove that when YSR was Chief Minister, he used public offices to favour companies who thanked him by investing in Jagan's companies at massive premiums.

Jagan Mohan is one of India's wealthiest politicians. His empire includes a vernacular newspaper, a TV channel, a cement plant and a power project, and is estimated to be worth more than a few hundred crores. Earlier this year, he declared assets amounting to 365 crores.

YSR died in September 2009 while he was still Chief Minister. The months that followed witnessed several acts of rebellion by Jagan against the Congress, which chose not to appoint him his father's successor. He quit the party with his mother last year, and has formed the YSR Congress.

The complaint against him has been filed by a minister in the current government, P Shanker Rao.

Jagan Mohan has accused the Congress of using courts to "witch-hunt." He has also said that if the CBI wants to investigate his father's term in office in the context of this case, it must quiz the different ministers that belonged to YSR's Cabinet.

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