Devdiscourse
Development News Edition
Give Feedback
write for Us

KA-REDDY-LD PONZI


PTI bengalu India
Updated: 07-11-2018 19:20 IST

Ballari-based mining baron and

former Karnataka minister G Janardhan Reddy was absconding as

police were on the look out for him in connection with a money

transaction worth crores of rupees allegedly linked to a ponzi

scheme, top officials said Wednesday.

The Central Crime Branch police here is also hunting

for Reddy's close aide Ali Khan, who allegedly struck a Rs 20

crore deal with Syed Ahmed Fareed of Ambidant Marketing pvt

Ltd, a company accused of involvement in the ponzi scheme, to

bail him out from Enforcement Directorate investigation.

Bengaluru Police Commissioner T Suneel Kumar said Reddy

was absconding and police were looking for him to question him

in connection with the case.

"Based on the information gathered the investigation is

going on further...CCB is after Ali Khan and Janardhan Reddy,"

he told reporters here.

CCB sleuths conducted a search at Reddy's Bengaluru

residence and seized some documents, Deputy Commissioner of

Police Girish S said.

He also said teams of CCB had gone to various places,

but declined to divulge more details.

The development comes a day after Reddy's close

confidant Sriramulu's sister J Shantha, a BJP candidate, lost

in the by-polls from Ballari Lok Sabha constituency,

considered a strong hold of the Reddy brothers.

The Congress won the seat breaking BJP's grip over

Ballari since 2004.

However, Additional Commissioner of Police (Crime) Alok

Kumar said there was no political connection to the probe.

He said his team had been working on the case for the

last 20 days, but waited till November 3 for the bypolls to be

over for further action, so that it was not politicised.

Reddy, a Minister during the previous BJP rule, had been

arrested by the CBI in 2011 over alleged multi-crore illegal

mining scam and granted bail three years later.

Reacting to the latest development, Sriramulu claimed he

did not have any information about the case and whereabouts of

Reddy, but added and no one was above law.

"I don't have complete information...I have been saying

no one is above law. Let law take its own course," he said.

Asked whether Reddy was an accused or a suspect, the

police commissioner said, Fareed's claim is that he paid the

money, because he was promised help by Janardhan Reddy in

connection with the ED probe and Reddy will have to respond to

these claims.

"We also have to verify whether it is a fact, whether ED

has got any cases registered against Fareed... we have to

recover the public money that was part of the transaction," he

added.

The commissioner, however, clarified that as of now

there was no evidence to prove about Reddy bribing any ED

official.

He said "we will have to investigate it and will get in

touch with ED... We cannot straight away say that ED officials

are involved. If there is solid evidence, we will not spare

anybody."

Detailing about the case, police said Fareed set up

Ambidant around 2017 promising returns of about 40 to 50 per

cent for investment.

Responding to this, thousands of people invested their

money into the company, which initially paid good returns,

attracting more and more investors.

On the company failing to pay returns as promised, cases

were registered against it, officials said, adding that,

during January or February ED had also raided it.

They said, meanwhile, Fareed had met Reddy through Ali

Khan requesting for help in bailing him out of ED the case,

and Rs 20 crore was demanded in the form of gold through a

jeweller known to them in Ballari.

Explaining about the investigation, the Commissioner

said, during investigation CCB found a particular transaction

of Rs 18 crore being paid by Ambidant to one Ramesh Kothari,

who runs Ambika Jewellers in Bengaluru.

Kothari on questioning said he had given 57 kg of gold

to a jeweller named Ramesh, who runs Raj Mahal Fancy Jewellers

in Ballari.

Ramesh had claimed that the gold was handed over to

Reddy's associate Ali Khan, he said.

He said there was no arrest warrant against Reddy,

adding that CCB officials have conducted searches at a few

places in Bengaluru and Ballari in connection with the case.

On reports about Reddy and associates trying to get

anticipatory bail in Hyderabad, he said, he got to know about

it only through the media.

Police said they have photographs of some meetings to

prove Reddy's direct link to this case, about which they will

seek clarification from him during investigation.

Reddy would soon be issued summons in the course of

investigation.

Police said they have arrested Ramesh and gathered

several 'crucial' documents from him.

Fareed was also arrested, but currently out on bail.

PTI KSU

VS VS

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

COUNTRY : India

POST A COMMENT