Hyderabad: A local court on Wednesday remanded former special secretary to Andhra Pradesh government KV Bramhananda Reddy and noted industrialist Nimmagadda Prasad to 14-day judicial custody, who were arrested by CBI in connection with an alleged disproportionate assets case involving Kadapa MP Y S Jaganmohan Reddy.
Bramhananda Reddy, an Indian Railways Accounts Service officer, currently posted in Kolkata, and Nimmagadda Prasad alias Matrix Prasad were produced before the special court for CBI cases here this afternoon, which remanded them to judicial custody till May 30.
Bramhananda was arrested by CBI over his alleged role in helping Jagan in amassing wealth disproportionate to his known sources of his income, while Prasad allegedly invested over Rs 500 crore in different businesses of Jagan and was arrested after two days of intensive questioning.
Prasad is charged with investing Rs 100 crore in Jagati Publications that publishes Telugu daily Sakshi, besides putting in another Rs 244 crore in Bharati Cements and Rs 200 crore in Carmel Asia, all floated allegedly by Jagan.
However, Prasad`s counsel wondered saying "my client appeared 13 times before the investigating agency and has been cooperting them. What was the urgency in arresting him."
CBI memo seeking police custody of the duo was posted for Thursday.
The then government headed by Jagan`s father YS Rajasekhara Reddy allegedly allotted 15,000 acres of land in Prakasam and Guntur districts to Prasad`s company for development of the Vadarevu-Nizampatnam port and industrial corridor.
The CBI, in its chargesheet filed in the case, alleged that Prasad invested huge money in Jagan`s business ventures as a quid pro quo for the benefits he secured from the then YSR government.