YSR Congress chief Jaganmohan Reddy faces fresh trouble with his auditor, associated with prominent auditing firm Deloitte, admitting cooking books for his firm.

With the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) already snapping on his heels, Jagan'sworries multiplied after the rogue auditor P.N. Sudarshan, a senior director with Deloitte, told CBI that he jacked up Jagati Publication's valuation from Rs. 2,500 crore to Rs.3,500 crore.

The revised business plan by Deloitte was prepared in 2008 but was given a back date of November 2007. High-profile investors pumped money in the firm at a huge premium of Rs. 350 per share based on this report.

Sudarshan has alleged that the accounts were fudged under pressure from Jagan and his personal auditor Vijay Sai Reddy. Apparently, he had told the Delotte official that the revised figure was only for internal audit purpose.

The company, however, has been tight-lipped about the whole scandal.

In a statement, Deloitte told Headlines Today: "We wish to reiterate, it is not proper for us to comment on media reports on pending investigations and as per our practice, we will cooperate and assist the designated agencies to the fullest extent required by the law. Our assignments have been performed with the required level of professional standards on independence and quality."

Jagan camp, meanwhile, alleged a political conspiracy behind the fresh allegations against their leader.

YSR Congress spokesperson Bajireddy Govardhan said: "The CBI is working for the government.

They are forcing these statements out of people like Sudarshan. It is entirely politically motivated as Jagan left Congress. These confessions don't hold water in the court of law. We will face them in the court. We will deal with them. Our leader is very clean."

Former Andhra Pradesh chief minister Y.S. Rajasekhara Reddy's son, Jagan had shot to fame when he became a Congress rebel, which was followed by a thumping victory in Kadappa bypoll. Back in May 2011, Jagan seemed unstoppable, but with the CBI closing in, it looks like the rebel has been punched into a corner.

There have been talks of MLAs deserting Jagan and going back to Congress. However, for the record YSR Congressdenied it, but there was no denying the fact that party leaders have been feeling demoralised. The YSR Congress maintained that no leader would leave the party and go back to the Congress.(Indiatoday)