CBI arrests Matrix Labs founder Nimmagadda Prasad

HYDERABAD: The Central Bureau of Investigation has arrested Matrix Laboratories founder Nimmagadda Prasad in connection with a corruption investigation involving the son of Andhra Pradesh's late chief minister YS Rajasekhara Reddy.

Prasad is the first industrialist to be arrested as part of the CBI's investigation of Jagan Mohan Reddy.

CBI has accused Prasad of investing money in companies controlled by Jagan as quid pro quo for obtaining thousands of acres of land for his port and industrial activities in two coastal districts.

Jagan and Prasad deny the accusation. In 2007, Prasad sold Matrix Laboratories to US-based Mylan Laboratories in a cash-and-stock deal for $736 million.