March 2012: Comptroller and Auditor General (CAG) alleged that the state had lost Rs 1 lakh crore revenue through favours granted to land and construction companies by Jagan. CBI report said Jagan's auditor V Vijay Sai Reddy had manipulated the valuation reports of Carmel Asia and Jagathi Publications to enable them to sell the shares at a premium of Rs.350 per share.
CBI DIG H. Venkatesh informed the Supreme Court that “India Cements made illegal quid pro quo investments to the tune of Rs 140 crore into the group companies of Y.S. Jagan Mohan Reddy". In return, they received benefits such as permission to draw extra out-of-norm water from rivers and lease of land.
