Daijiworld Media Network - Hyderabad

Hyderabad, Nov 12: Jagathi Publications owned by Kadapa MP Jagan Mohan Reddy is under scanner as its value has been overstated by Rs 1000 crore.

It has been valued Rs 3,500 crore, which is another Satyam like scam. Auditing firm Deloitte reportedly admitted to meddle with the accounts of the Kadapa MP Jagan Reddy-owned media house Jagathi Publications.

The company reportedly told a Hyderabad court that it had pumped up the value of Jagathi by one Rs 1000 crore from Rs 2,500 to Rs 3,500 crore in April 2008. Which in turn was done under pressure from Jagan’s Company, Deloitte added.

Jagathi auditor Vijay Sai Reddy rubbished the allegations saying it's a plot to damage Jagan's image. Jagan and Vijay Sai Reddy are being probed in disproportionate assets case by CBI.

Deloitte said, Jagathi had told Deloitte that the figures were just for internal purposes since it was a private deal with Jagathi, hence there was no need to report to regulators.

This is second known instance of a multi-national audit firm fudging the account books of a company, earlier PricewaterhouseCoopers had misrepresented accounts of Satyam Computer Services in an estimated fraud of Rs 14,000 crore.