Hyderabad:
The CBI court has ordered judicial remand for Vijay Sai Reddy, who was arrested yesterday by the CBI in an illegal assets case against YSR Congress party chief Y.S. Jaganmohan Reddy.
The hearing on the CBI plea for custody will continue tomorrow.
Vijay Sai Reddy was arrested by the CBI Monday night after questioning him through the day at the guest house.
The CBI officials later in his presence searched his auditing office, residence and the premises of Sakshi, the Telugu daily and the television channel run by the MP.
CBI Joint Director V.V. Lakshminarayana said Vijay Sai Reddy has been booked under sections 120 B (criminal conspiracy), 420 (cheating), 409 (criminal breach of trust by a public servant), 477 (A) (falsification of accounts) and sections 13 (2) read with 13 (1)(D) of the Prevention of Corruption Act.
This is the first arrest made in the case.
As the auditor and financial advisor of the family of late chief minister Y.S. Rajasekhara Reddy, he allegedly played a key role in floating of dozens of companies by Jaganmohan Reddy and mobilising investments from various companies both in India and abroad.
A former director of Oriental Bank of Commerce, Vijay Sai Reddy was questioned several times by the CBI since registering a case against Jaganmohan Reddy and 71 others in August last year following a direction from the Andhra Pradesh High Court.
The court direction came on petitions by state minister P. Shankar Rao and leaders of the Telugu Desam Party (TDP)
The MP from Kadapa is facing the allegation of conspiring with his late father Rajasekhara Reddy to roll out public assets in the form of mining licenses, special economic zones, ports, real estate permissions to unscrupulous investors who pumped in money into his companies on a quid-pro-quo basis.
Several companies and individual investors have been included in the case as accused.