The Appellate Tribunal has stayed the order of the Enforcement Directorate (ED), attaching the properties worth Rs.51 crore in connection with the ongoing DA case against the YSR Congress Party President Y S Jagan Mohan Reddy and his associates.

The Tribunal set aside the decision of the Adjudicating Authority approving the ED's move. It posted further hearing on the matter to August 18.

Earlier in October last year, the ED had attached more than 13 acres of land of Ms Janani Infrastructure Private Limited and fixed deposits worth Rs. 14.50 crore of Ms Jagati Publication Limited as "kickbacks allegedly received in lieu of granting favours" to private entities. Both the companies are owned by Jagan. 

The MP from Kadappa is at present lodged in the Chanchalguda central prison in Hyderabad ever since his arrest in May last year.

The attachment order, issued under the stringent provisions of the Prevention of Money laundering Act (PMLA), was also against the private companies which were "illegally benefited as a result of criminal activity" and illegal sanctions granted during the tenure of late Y S Rajasekhara Reddy.

The other properties attached by the agency are 35 acres of land and fixed deposit of Rs. 3 crore of Ms Hetero Drugs Limited, 96 acres of land of Ms APL Research Centre Limited, a 100 per cent subsidiary of Ms Aurobindo Pharma Limited, and fixed deposit of Rs. 3 crore of Aurobindo Pharma.

The properties of these firms have been attached as the agency alleges that these companies received illegal favours from the then Andhra Pradesh government.

The ED attachment ensures that these properties cannot be used by the accused and he is devoid of any benefits from these assets, and such an order can be challenged by the accused at the adjudicating authority of the PMLA.

In its order, the agency said during the investigation it was revealed that "as a result of the criminal activity, Ms Hetero Drugs Limited and Ms Aurobindo Pharma Limited were illegally benefited by Rs. 8.60 crore each in the allotment of 75 acres of land to each of them by the state government of Andhra Pradesh while Ms Trident Life Sciences Limited was illegally benefited by Rs. 4.30 crore in the allotment of 30.33 acre land".

The agency said these allotments of lands were done "illegally by the state government at a lower rate than the rate fixed by the price fixation committee".

The Enforcement Directorate found that "in return of this favour, a sum of Rs. 14.50 crore was paid to Ms Jagati Publications Limited and Rs. 15 crore was paid to Ms Janani Infrastructure Private Limited (the companies owned and controlled by Jagan Mohan Reddy). The ED began its probe against Jagan and his associates on the basis of the CBI FIR which stated that since "May 2004 Jagan Reddy floated number of companies wherein quid pro quo investments have been made by the beneficiaries from the decisions of the state government in various forms like SEZs, irrigation contracts, relaxation/permission for real estate ventures, mines among others".