It may be mentioned here that Rajagopal was arrested in connection with the OMC scam and released on bail. The CBI authorities questioned him for three hours in connection with the case against Jagan. It is learnt that CBI authorities questioned him about allocation of lime stone mines to cement factories when he was the MD. Some of these companies invested money in Jagan�s companies.
Penna and Dalmia Cements were allotted lime stone mines during late Dr Y S Rajasekhara Reddy�s regime. While the Penna Cements was allotted lime stone mines in 822 acres in Tandur of Ranga Reddy and two other districts, Dalmia Company was allotted 407 hectares of mines in Mylavaram of Kadapa district. There are allegations that Penna Cements had invested Rs 68 crores and Dalmia invested Rs 95 crores in Jagan companies in lieu of these allocations.
It is learnt that CBI authorities questioned Rajagopal about these dealings. The CBI sleuths also suspect the complicity of the suspended IAS officer Sri Lakshmi in these scandalous deals.