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New Delhi: Mining baron and former Karnataka Bharatiya Janata Party (BJP) minister G Janardhan Reddy was granted bail by a court on Wednesday, that is, November 14 with regard to the alleged Ponzi scam. Reddy was arrested on Sunday in connection with a multi-crore Ponzi scheme case.
The bail plea which was to be heard on Monday was put off owing to the demise of late Union Parliamentary Minister Ananth Kumar.
Reddy who was arrested by the Central Crime Branch (CCB) had been earlier sent to judicial custody till November 24. Reddy’s close aide Ali Khan had also been arrested in connection with the money transaction worth crores of rupees, allegedly linked to a Ponzi scheme.
The minister was placed under custody a day before on the basis of prima facie evidence of the owners of the finance firm, Ambidant Marketing Pvt Ltd, transferring Rs 18 crore worth of gold — weighing 57 kg — and Rs two crore in cash through two aides of Reddy.
The firm allegedly cheated over 15,000 investors by running a Ponzi scheme. In the name of ‘halal investment’, the firm had received over Rs 954 crore from a particular target community. Janardhana Reddy had been accused of obtaining Rs 20 crore from the owner of Ambidant Marketing Pvt Ltd Syed Ahmed Fareed to enable Enforcement Directorate (ED) officials to drop the case against Ambidant.
The mining baron was booked under IPC Sections 204 (destruction of evidence), 120(b) (criminal conspiracy and 420 (cheating) and the Prevention of Money Laundering Act. Earlier in 2011, when Reddy was serving as the minister during the BJP rule, the CBI had arrested him in an alleged illegal mining scam case. Three years later, Reddy was granted bail in the case.
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