A significant development has emerged in the Kakinada Port ownership case as Andhra Pradesh’s Criminal Investigation Department (CID) reveals new findings. The investigation centers around the forced takeover of shares worth Rs 3,600 crores in Kakinada Seaports Limited (KSPL) and Kakinada SEZ.
The CID has discovered that an audit firm PKF Sridhar and Santhanam LLP , which was appointed to investigate KSPL, is allegedly connected to YSRCP MP Vijayasai Reddy. This Chennai-based audit firm has been identified having close ties with the MP, raising serious questions about the audit’s independence.
The controversy deepened when investigators found that PKF Sridhar & Santhanam LLP initially reported that KSPL had evaded paying Rs 965 crores to the state government. However, after the port was transferred to Aurobindo, the same firm dramatically reduced this amount to just Rs 9 crores.
The case involves an alleged forced acquisition of 41.12% stake owned by KV Rao’s Kakinada Infrastructure Holdings Private Limited (KIHPL) in KSPL. The CID investigation suggests that the selection of PKF Sridhar & Santhanam LLP for the special audit was part of a larger plan to take control of these shares.
KV Rao has filed a complaint with CID on PKF Sridhar, Vijayasai Reddy , Sarath Chandra Reddy, Vikrant Reddy and on Santhanam LLP.
In detail, On November 13, 2019, the YSRCP government issued a memo ordering special audits for all public-private partnership ports in the state. However, the CID found that the audit was only conducted at Kakinada Seaport, despite orders covering all PPP ports.
