Bellary mining baron Gali Janardhana Reddy
Karnataka's mining baron Gali Janardhana Reddy was arrested here for allegedly shielding the accused in a multi-million Ponzi scheme, a police officer said on Sunday.
"Based on the evidences and statements, Reddy has been arrested and charged with criminal conspiracy," Additional Commissioner of Police (Crime) Alok Kumar told reporters here.
Reddy, 51, will be produced before a magistrate for police or judicial custody later in the day.
The Central Crime Branch (CCB) charged Reddy with shielding a father and son, accused in the Rs 9.54 billion Ponzi scheme, from being investigated by the Enforcement Directorate (ED) for alleged money laundering in violation of the Foreign Exchange Management Act (FEMA).
His arrest comes a day after he (Reddy) drove to the CCB office on Saturday evening in response to its summons in the Ponzi case.
Reddy was quizzed on Saturday by CCB officials led by Alok Kumar, Deputy Commissioner of Police (DCP) S Girish and Assistant Commissioner of Police (ACP) Venkatesh Prasanna.
The CCB also arrested Reddy's aide Ali Khan, who had allegedly struck Rs 180 million deal with the accused, Syed Ahmed Fareed and his son Syed Afaq Ahmed of Ambidant Marketing Ltd, a city-based company that ran the Ponzi scheme and duped about 15,000 investors by laundering their money from Dubai.
Reddy, a former BJP Minister in the state (2008-11), however, denied his involvement in the case.
"I have no role in the Ponzi scheme. The police have no evidence to prove my involvement in it. They (police) are misleading the media and the public," said Reddy in a video clip released to local news channels before his interrogation on Saturday.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.