Srinivasan was questioned about the quid pro quo investments his company made into the firms of Jagan, as he is popularly called. He was issued a notice earlier this month asking him to appear before the CBI.

India Cements allegedly invested Rs 135 crore into Jagan’s businesses in return for the benefits it received from the then government of Jagan’s father YS Rajasekhara Reddy, who was killed in a helicopter crash in 2009.

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The investments were made into Bharati Cements and Jagati Publications owned by Jagan in return for the benefits India Cements received in the form of additional water allocation for its units in Andhra Pradesh.

The CBI believes the then government issued two orders allocating additional water from Krishna and Kagna rivers to two plants of Srinivasan’s India Cements.

The water allocation for India Cements’ Nalgonda plant was enhanced from three lakh gallons to 10 lakh gallons per day while the supply was raised from three lakh gallons to 13 lakh gallons per day for its plant in Ranga Reddy district. The orders reportedly helped the company to double its production in the state.