Departure of Close Aide Vijayasai Reddy Intensifies Crisis for Jagan Mohan Reddy

Amaravati, Feb 2 (NationPress) Seven months post power loss, the turmoil within the YSR Congress Party has escalated with the exit of V. Vijayasai Reddy, who tendered his resignation from the party's primary membership just two days ago.

YSRCP leader and former Chief Minister Y. S. Jagan Mohan Reddy was overseas during Vijayasai Reddy's announcement of his political retirement a week prior, after which he formally submitted his resignation to Rajya Sabha Chairman Jagdeep Dhankar.

Following Jagan's return two days ago, Vijayasai Reddy officially resigned from his party roles and primary membership.

He expressed hopes for Jagan Mohan Reddy to reclaim the Chief Minister position with a significant majority in the 2029 elections.

While it is typical for leaders to abandon a party after losing power in Indian politics, Vijayasai Reddy's resignation represents an unusual turn of events for the YSRCP, shocking both the party and Jagan Mohan Reddy.

Vijayasai Reddy was more than just the general secretary and parliamentary party leader; he was also a close family friend of Jagan and a key strategist for the YSRCP.

The abrupt choice of the chartered accountant-turned-politician to exit politics caught the party off guard, especially as it was still recovering from the severe defeat in last year’s elections.

Until recently, Vijayasai Reddy remained active on social media platform X, sharing his viewpoints on various topics and targeting political adversary N. Chandrababu Naidu.

He had provided no prior indication of his intentions and the announcement on January 24 via X took everyone by surprise.

Describing his decision as personal, he clarified that he would not be joining any other political party.

After resigning from the Rajya Sabha the following day, Vijayasai Reddy disclosed that he had thoroughly explained his reasons to Jagan Mohan Reddy before making the announcement.

Despite Jagan's counsel against leaving the party, he remained resolute in his decision.

Speculations suggest that disagreements with Jagan Mohan Reddy may have prompted Vijayasai’s resignation. This theory gained traction following reports of Vijayasai Reddy's meeting with Jagan’s sister and Andhra Pradesh Congress President Y. S. Sharmila in Hyderabad three days prior.

Sharmila has not only been a political rival to Jagan but has also had disputes regarding family property, having criticized Vijayasai Reddy on multiple occasions. Recent family property disputes have also surfaced, with Sharmila and her mother Vijayamama alleging that Vijayasai Reddy, as the auditor, was aware of asset allocations made by Y. S. Rajasekhara Reddy (YSR) to his children.

The reported meeting between Vijayasai and Sharmila could pose new challenges for Jagan Mohan Reddy politically while also complicating the ongoing family property disputes.

Jagan, whose party managed to secure only 11 seats in the 175-member State Assembly, faces significant hurdles in maintaining stability over the next five years.

Vijayasai Reddy's exit is perceived as a psychological setback for Jagan Mohan Reddy, who had relied on him through numerous challenges since Jagan established the YSR Congress in 2010, a year following his father's tragic helicopter crash.

He was implicated as accused number two in a case concerning disproportionate assets initiated against Jagan by the Central Bureau of Investigation (CBI).

Vijayasai Reddy was detained by the CBI in 2012, remaining incarcerated for approximately 100 days before being released on bail.

The CBI charged him as the mastermind behind the establishment of various “shell” companies allegedly used to funnel money into Jagan’s businesses, including Jagathi Publications.

Having served as the YSR family's personal auditor for four decades, he was appointed to the Tirumala Tirupati Devasthanams (TTD) trust board during YSR's tenure.

Post YSR’s death in 2009, Vijayasai Reddy grew closer to Jagan and is thought to have significantly influenced his key political decisions.

Regarded as a shrewd strategist within YSRCP, he rose to prominence following the party's overwhelming victory in Andhra Pradesh in 2019.

As the YSRCP parliamentary party leader, he acted as a liaison between the BJP-led NDA and the YSRCP, fostering closer ties with senior BJP figures.

Vijayasai Reddy, who previously ran for the Lok Sabha from Nellore constituency last year but was unsuccessful, remained loyal to the party during a challenging period when several Rajya Sabha members and other leaders abandoned the party in August-September.

His social media declaration of allegiance to Jagan Mohan Reddy raised eyebrows in political spheres. “I wish to affirm that I am a loyal, dedicated, and committed worker of the YSRCP. I will continue to support YSRCP and work under the leadership of Y. S. Jagan Garu. I condemn the unfounded speculation and misinformation being circulated by sections of the media regarding my departure from YSRCP and joining another political party,” Vijayasai stated on X on August 28, 2024.

The reasons behind his sudden departure, especially after such statements, are now being scrutinized in political discussions.

His resignation followed less than three weeks after he was interrogated by the Enforcement Directorate (ED) relating to alleged irregularities in Kakinada Seaports.

The case includes accusations of fraud, criminal intimidation, and conspiracy regarding acquiring stakes in Kakinada Seaports Limited and Kakinada SEZ Limited at undervalued prices for Aurobindo Realty.

Investigations by the ED commenced after the Andhra Pradesh Crime Investigation Department (CID) opened a case based on claims made by former Chairman and Managing Director of Kakinada Seaports Limited, Karnati Venkateswara Rao.

The CID also implicated Vijayasai Reddy’s son-in-law Sarath Chandra Reddy, Y. Vikranth Reddy, and two companies, alleging that 41.12 percent of the port, estimated at ₹2,500 crore, was acquired for just ₹494 crore.

Earlier in December, Vijayasai Reddy announced plans to file a defamation suit against Chief Minister N. Chandrababu Naidu and Venkateswara Rao for making false allegations against him concerning Kakinada Port and SEZ dealings.