Bengaluru: Janardhan Reddy and his associate Ali Khan have been arrested by the City Crime Branch (CCB) police, following 21-hour interrogation in Bengaluru.

Mining baron Janardhan Reddy has been accused of being involved in a ponzi scam. He took 57kg of gold from Ambidant Marketing Pvt Ltd founder-director Syed Ahmed Fareed, promising to pay unscrupulous Enforcement Directorate officers to let him off the hook. He has been evading the police for four days. Syed Ahmed Fareed is being investigated by the Enforcement Directorate for the Rs 600 crore scam.

Ali Khan is said to have struck the deal worth over Rs 21 crore in the Ponzi scam case.

Security has been tightened outside CCB office, to avert any law and order situation.

After Fareed, who is in police custody revealed Janardhan Reddy's name, police conducted raids at Janardhan Reddy's house in Ballari. But he was not found at his properties in Ballari, Molakalmur, nor in Hyderabad. 

Watch: ED bribery case: Janardhan Reddy appears before police in Bengaluru

As CCB was intensifying its search for Reddy, he released a video and said that he was very much in Bengaluru and would appear before the cops.

Following this, he went into the CCB office, where he was questioned for 21 hours on the basis of information given by Ambidant owner Fareed and documents availed in the raid conducted at Reddy's properties. 

So, after four days of trying to arrest Reddy, he has been taken into custody and will shortly be produced before the magistrate in Koramangala, say sources.

He is said that he would be made to undergo medical tests before taking him to the magistrate.

Earlier too, Reddy has served 21 months in Central Prison with respect to the illegal mining case and currently, he is out on bail. In addition, the court has banned him from entering Ballari.

Officials are set to take Reddy to Victoria Hospital in Bengaluru for medical check up. After this, he will be taken to the Magistrate and is likely to be sent to Parappana Agrahara Central Jail by evening. Tight security has been deployed outside Victoria Hospital too, to prevent any untoward incident.

Sources said that police will not seek custody of Janrdhan Reddy but will ask to hand over Ali Khan to them. Reddy is likely to be handed over to judicial custody.

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