Amaravati, Jan 20 (IANS): In a major setback to the Y.S. Jagan Mohan Reddy government, the Andhra Pradesh High Court on Tuesday quashed all the proceedings relating to the alleged insider trading in Amaravati land deals.

The court found that the circumstances of the prosecution against the petitioners is not at all maintainable, observing that it is beyond comprehension as to how private transactions could be criminalised on flimsy grounds.

Justice Cheekati Manavendranath Roy's judgment has poured cold water on a scandal being alleged by the ruling YSR Congress Party since long against several leaders of the previous Telugu Desam Party government.

A sub-committee of the Cabinet was formed which accused TDP supremo and then Chief Minister N. Chandrababu Naidu and several others for allegedly buying parcels of land before Amaravati was declared as the capital with prior knowledge and termed it insider trading.

It remains to be seen what the next step of the state government will be.