This story is from November 12, 2018

Ballari's Janardhana Reddy arrested in Rs 600 crore Ponzi scheme case

The Central Crime Branch wing of the Bengaluru police on Sunday arrested former Karnataka minister and BJP's strongman from Ballari, Gali Janardhana Reddy, after a marathon interrogation session over his role in the alleged Rs 600-crore Ponzi scheme by Ambidant Marketing Pvt Ltd.
Ballari's Janardhana Reddy arrested in Rs 600 crore Ponzi scheme case
Gali Janardhana Reddy arrested by CCB police on Sunday for his alleged role in cheating case involves more than Rs 600 crore by Ambident Marketing Pvt Ltd.
Key Highlights
  • The CCB arrested G Janardhana Reddy, after a marathon interrogation session over his role in the alleged Rs 600-crore Ponzi scheme.
  • The magistrate remanded him in judicial custody for 14 days till November 24.
  • CCB claims to have evidence to show that Reddy conspired to use ED's name to get Rs 20 crore illegally, but they are yet to make any of the evidence public.
BENGALURU: The Central Crime Branch wing of the city police on Sunday arrested former Karnataka minister and the BJP's strongman from Ballari, Gali Janardhana Reddy, after a marathon interrogation session over his role in the alleged Rs 600-crore Ponzi scheme by Ambidant Marketing Pvt Ltd. The interrogation began around 4pm on Saturday and went on till 2am on Sunday.

Although the CCB sought custody of Reddy - listed as accused number six in the case - the magistrate remanded him in judicial custody for 14 days till November 24. CCB claims to have evidence to show that Reddy conspired to use ED's name to get Rs 20 crore illegally, but they are yet to make any of the evidence public.

Had no role in Ponzi scheme, says Reddy
ACCB probe had revealed Reddy and his aide, Mehfuz Ali Khan, had allegedly received 57kg gold worth Rs 18 crore from Ambidant Marketing to “negotiate” with ED officials to go easy against Syed Ahmed Fareed, the firm’s promoter. Khan, who was also questioned along with him for his alleged involvement in the case, is out on bail in the case. The interrogationrevolved around Reddy’s previous cases, including the multiple cases he is charged in by CBI and income tax department. Reddy, an accused in the multi-crore illegal mining scam in Karnataka and Andhra Pradesh, was arrested by CBI on September 5, 2011. He was granted bail only in 2015 by SC even while his case is ongoing in the CBI court.Sources said throughout the questioning, Reddy insisted hewas innocent and declared that hehad no role to play in the Ponzi scheme runby Ambidant.
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