Hyderabad: A special court here Tuesday sent YSR Congress Party chief YS Jaganmohan Reddy`s close aide Vijay Sai Reddy to judicial custody for two weeks in a case involving Jaganmohan`s alleged illegal assets.
The special court dealing with the Central Bureau of Investigation (CBI) cases remanded Vijay Sai Reddy to judicial custody till Jan 17.
Vijai Sai, who was arrested by the CBI Monday night, was later shifted to the Chanchalguda Central Jail.
The court adjourned to Wednesday the hearing on the CBI`s petition for his custody for two weeks.
The vice-president of Jagati Publications Private Limited (JPPL), owned by Jaganmohan Reddy, told the judge that the CBI unnecessarily dragged him into the case.
Vijay Sai, who is the second accused in the case, spent the night at government-run Dilkusha guest house, which is serving as the camp office of the CBI.
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 VV 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 YS 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 a case was registered against Jaganmohan Reddy and 74 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).
Jaganmohan Reddy, 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 money into his companies on a quid pro quo basis.
Several companies and individual investors have been included in the case as accused.