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AP orders probe into NRI sex racket

Syed Amin Jafri in Hyderabad

Andhra Pradesh Chief Minister Nara Chandrababu Naidu has directed the crime branch -- criminal investigation department of the state police to inquire into the activities of Lakireddi Bali Reddy, a non-resident Indian from Krishna district, who is alleged to have procured innocent girls from the state over a period of time for engaging them in immoral activities in the United States.

Chandrababu Naidu instructed the officials to probe into "all activities" of Bali Reddy in the state and submit a detailed report to him, according to an official media statement.

His orders for a probe came in the wake of media reports over the arrest of Bali Reddy by the Oakland police in California (United States) on charges of "importing aliens for the purpose of prostitution and for other immoral purposes" and "inducing immigrants to illegally enter and live in the United States".

For many persons in Krishna district, the arrest of Bali Reddy came as a shocking news since he was treated by the locals in his native district as a great philanthropist and social service activist.

As recently as in October 1999, Bali Reddy, during his visit to India, inaugurated a Kalapeetham (arts centre) named after him. He also announced the formation of a trust for social service. He also established an engineering college near Mylavaram for which he acquired 30 acres of land at a cost of Rs 5 million. He purchased large tracts of rich agricultural land, too.

Bali Reddy settled in the United States two decades ago after starting a business there. However, he kept visiting his home district almost every year. Hailing from Velvadam village near Mylavaram, he paid short visits to the village particularly during Mahashivratri and Vinayaka Chaturthi festivals and spent lavishly.

He took up charitable work to gain the confidence of the people in several villages in Krishna and Khammam districts. He reportedly procured young girls from dalit wadas and other weaker section colonies in these villages, shifted them to the United States and forced them into prostitution.

Bali Reddy reportedly operated in places such as Kanchikacharla, Gottumukkala, Venkatapuram, Ramachandrapuram and Velvadam in Krishna district and Gopavaram, Banigallapadu, Veenavolu, Valluru and Thakkellapadu villages in Khammam district.

One version is that in recent years, Bali Reddy took as many as 300 persons to the United States. Men and women were taken to the US by creating fake marriage certificates. While men were employed in his hotel and other ventures, the women were used allegedly for immoral activities.

Bali Reddy exploited the poverty of the people and lured several parents to sell away their daughters to him for being taken to the United States. He also took the assistance of officials in Hyderabad for fabricating the "marriage certificates" of the "couples" who were taken to the US.

One of the hapless girls taken by him to the US was 17-year-old Sitha, a native of Mylavaram. She went to the US in August last. In November 1999, Sitha died due to suspected carbon monoxide poisoning in an apartment owned by Bali Reddy in Berkeley.

Bali Reddy is said to be worth 50 to 60 million US dollars. He owns two restaurants, 1,000 apartment units, besides property in Silicon Valley. He is said to be the biggest landlord in Berkeley town.

The Andhra Pradesh police is planning to book cases against Bali Reddy, after getting formal complaints from the hapless parents of the girls who were "bought" and taken to the US by this 62-year-old "businessman-cum-philanthropist" for immoral activities.

"We will also extend all cooperation to the US police in the investigations taken up there into the charges against Bali Reddy," police sources said.

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