Hyderabad, Jan 3 (IANS): Vijay Sai Reddy, who has been arrested by the Central Bureau of Investigation (CBI) in an illegal assets case against YSR Congress party chief Y.S. Jaganmohan Reddy, will be produced before court Tuesday.
The vice-president of Jagati Publications Private Limited (JPPL), owned by the Kadapa MP, spent the night at government-run Dilkusha guest house, which is serving as the camp office of the CBI.
Vijay Sai Reddy, who is the second accused in the case, was taken to a hospital Tuesday morning and then shifted to the CBI office at Koti.
The investigating agency will produce him before a CBI special court at Nampally later in the day. It is likely to seek his custody for questioning.
He 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.