CBI arrests mining baron Janardhan Reddy; 30 kg gold, Rs 4.5 cr found in raids

Mining baron and formerKarnataka Minister G Janardhan Reddy and Managing Director of Obalapuram MiningCompany B V Srinivas Reddy were on Monday arrested by CBI after searches attheir premises allegedly led to seizure of over 30 kg of gold and more than Rs4.5 crore in cash.

A 15-member CBI team from Hyderabad conducted searches at JanardhanaReddy's house and claimed to have seized Rs three crore in cash and over 30 kgsof gold, official sources alleged.

A sum of Rs 1.5 crore was also seized from the residence ofReddy's brother-in-law Srinivasa Reddy, who is also the Managing Director ofthe company owned by the Reddy family, they claimed.

"Janardhana Reddy and Srinivasa Reddy have beenarrested under Prevention of Corruption Act and we are taking them to Hyderabad", CBI DIG P V Lakshminarayana, who isheading the team, told reporters in Bellary.

The arrests came in connection with the cases filed by CBIagainst the Reddy brothers in Andhra Pradesh, the sources said, adding bothwere expected to be produced before a special CBI court in Hyderabad later in the day.

Even as the CBI team escorted the Reddys to Hyderabad,the agency continued searches at Janardhana Reddy's residence in Bellary and Bangalore.

A team questioned Aruna Lakshmi, wife of Janardhana Reddy inBellary, and another conducted searches at hisresidence in Bangalore,they said.

The CBI action comes a day after the Reddy brothers' closeassociate and former minister B Sreeramulu quit his assembly membershipprotesting against their being kept out of the ministry following theirindictment by a Lokayukta report on illegal mining.