Monday, Feb 26, 2024 | Last Update : 03:06 AM IST

  India   All India  12 Nov 2018  Former minister Janardhan Reddy, aide arrested in ponzi scam case

Former minister Janardhan Reddy, aide arrested in ponzi scam case

THE ASIAN AGE.
Published : Nov 12, 2018, 5:24 am IST
Updated : Nov 12, 2018, 5:24 am IST

Reddy, who was allegedly on the run ever since news of the scam broke out, had reached the CCB office Saturday noon where he was grilled.

Gali Janardhan Reddy (Photo: File)
 Gali Janardhan Reddy (Photo: File)

Bengaluru: Former Karnataka BJP minister and mining baron Gali Janardhan Reddy was arrested by the Central Crime Branch police here on Sunday in a money-laundering and bribery case in which he is accused of demanding a bribe to bail out the owners of Ambidant Marketing Pvt Ltd, an investment company facing an Enforcement Directorate inquiry. Ambidant allegedly duped over 15,000 customers of over Rs 900 crores in a ponzi scam.

Reddy was produced before the 6th additional chief metropolitan magistrate’s court, which remanded him to judicial custody till November 24. He is currently lodged at the Parappana Agrahara Central Prison here.

Reddy, who was allegedly on the run ever since news of the scam broke out, had reached the CCB office Saturday noon where he was grilled. On Sunday morning, additional commissioner of police (crime) Alok Kumar announced Reddy’s arrest and said: “We have taken the decision to arrest him on the basis of credible evidence and the statements of witnesses. We are going to recover the money and give it back to investors.”

Reddy has been booked under Sections 204 (destruction of evidence). 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code and many sections of the Prevention of Money Laundering Act. He was accused of demanding 57 kg of gold worth Rs 18 crores from Ambidant’s owner Syed Fareed Ahmed to save him from the ED’s clutches. Fareed, who is on bail, revealed to the police how the deal was struck and the gold  handed over to Reddy.

Sources said during the investigation, it came to light that Fareed met Reddy through his close aide, Mehfuz Ali Khan, and struck a deal. Reddy allegedly demanded 57 kg of gold as a bribe through a jeweller. Ambidant allegedly paid Rs 18 crores to Ramesh Kothari of Ambika Jewellers in Bengaluru, who handed over 57 kg of gold to jeweller Ramesh of Raj Mahal Fancy Jewellers in Ballari. From Ramesh, Khan collected the gold for Reddy. Khan was also summoned by the CCB for questioning.

However, Reddy has denied the allegations and any involvement in the affairs of Ambidant, while asserting he was being framed.

Tags: janardhan reddy, ponzi scam
Location: India, Karnataka, Bengaluru