Ponzi Scam: Bengaluru Central Crime Branch Arrests Mining Baron Janardhana Reddy For 'Shielding' The Accused

News World India | 0
| November 11 , 2018 , 17:03 IST

Former Karnataka minister and mining baron Gali Janardhana Reddy was arrested in Bengaluru on Sunday for allegedly shielding the accused in a multi-crore Ponzi scheme in the name of Islamic Banking' by the central crime branch.

Speaking to media Additional Commissioner of Police (Crime) Alok Kumar said, " We have taken the decision to arrest him on the basis of credible evidence and witnesses statements. We will produce him before the magistrate. We are going to recover the (Ponzi scheme) money and give it to the investors."

It is learnt that Reddy will be produced before a magistrate for police or judicial custody later in the day.

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The Central Crime Branch (CCB) charged Reddy with shielding a father and son, accused in the Rs 954 crore Ponzi scheme, from being investigated by the Enforcement Directorate (ED) for alleged money laundering in violation of the Foreign Exchange Management Act (FEMA).

According to media reports, the former minister on Saturday released a video message from an denying the allegations as a "political conspiracy". He said he was not absconding and was very much in the city while asserting that there was no need for him to flee.

His arrest comes a day after 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 18 crore deal with the accused, Syed Ahmed Fareed and his son Syed Afaq Ahmed of Ambident 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.