The Chennai-based cement company has been under CBI scanner for its investments in Jagan Mohan Reddy’s company. Jagan, son of former Andhra Pradesh chief minister late Y.S. Rajasekhara Reddy owns Jagati Publications and was also the owner of Bharathi Cements.
N. Srinivasan, vice-chairman of India Cements, was also questioned by the CBI on his investments in Jagati Publications owned by Jagan Mohan Reddy. Speaking at the company’s annual general meeting, Mr Srinivasan said: “We made a good profit by selling our stake in Bharathi Cements. Our intention was to acquire the cement firm but the price quoted was very high. Bharathi Cements was eventually sold to a foreign player. In due course of time, we will exit from Jagati Publications as well.”
A senior company official also said that India Cements invested Rs 130-135 crore in Jagati Group. While about Rs 40 crore continues to be invested in Jagati Publications, the company made profits of Rs 30-35 crore by selling its stake in Bharathi Cements.
Commenting on the Competition Commission of India’s penalty against cement companies, Mr Srinivasan said: “We don't agree we indulged in any activities mentioned in the order. This is just an order, not finality or judgement. We have been advised that we will come out of it.”