G Janardhana Reddy arrested over links to ponzi scheme; sent to judicial custody till 24 November

The Central Crime Branch (CCB) in Bengaluru on Sunday arrested Karnataka mining baron and BJP leader G Janardhana Reddy over his alleged links to a ponzi scheme with Ambident Marketing Group. He has been sent to judicial custody till 24 November.

Additional Director General of Police Alok Kumar said Reddy was arrested on criminal conspiracy charges, CNN-News18 reported. He added that he may be presented to a judge at his house as courts do not function on the weekends. Reddy will also be taken to a hospital for a routine medical checkup.

 G Janardhana Reddy arrested over links to ponzi scheme; sent to judicial custody till 24 November

File photo of Janardhan Reddy. PTI

The arrest comes a day after Reddy surrendered to the police in Bengaluru and was held until late on Saturday night for questioning.

On Saturday, ahead of his appearance before the CCB, Reddy released a video, in which he called the allegations against him a "political conspiracy". He also claimed that he had not been absconding as there was no need for him to flee.

"I have not done anything wrong. The police do not have a single document to prove that I am wrong. They are misleading the media," he claimed in his video, which was telecast by news channels.

CCB investigators had launched a hunt for Reddy on Wednesday in connection with a transaction worth crores. Reddy is accused of taking money to thwart investigations into a Ponzi scam involving the owner of Ambident Marketing, Syed Ahmed Fareed. However, the BJP leader has denied the allegations.

The CCB has also been on the lookout for Reddy's close aide, Ali Khan, who had allegedly struck a Rs 20-crore deal with Fareed to bail him out from an investigation by the Enforcement Directorate.

The company is involved in collecting investments from customers in the name of Halal Investment and offering huge returns to the extent of up to 12 percent per month, according to India Today.

Commissioner of Police of Bengaluru T Suneel Kumar had said on Wednesday that Reddy was absconding and that the police were looking for him to question him in the case.

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Updated Date: Nov 11, 2018 17:09:41 IST