Ponzi scheme case: Mining baron G Janardhan Reddy arrested

Mining baron and former state minister Gali Janardhan Reddy was arrested by the Central Crime Branch on Sunday in the Rs 600 crore fraud case. He will now be produced to the magistrate. As reported by ANI Central Crime Branch has arrested G janardhan Reddy in connection with Ambidant Marketing pvt Ltd alleged bribery case.

Janardhan Reddy is accused of taking a Rs 20-crore bribe to bail Syed Ahmed Fareed, accused in a Ponzi scheme case, out from the Enforcement Directorate investigation.

As reported by TOI, the investigating agency said that they have also arrested Reddy's aide Mehfuz Ali Khan, who had allegedly struck a Rs 20-crore deal with Syed Ahmed Fareed of Ambidant Marketing Pvt Ltd. -- a company accused of involvement in the ponzi scheme -- to bail him out from the Enforcement Directorate investigation.


After remaining elusive for three days, former Karnataka minister and mining baron G Janardhana Reddy Saturday appeared before the police in connection with an alleged ponzi scam, and denied the allegations as a "political conspiracy".

Earlier on Saturday Reddy, who was a minister in the erstwhile Bharatiya Janata Party (BJP) government in Karnataka, said he never panicked as neither his name figured in the first information report (FIR) nor was any notice served on him.

What is the case?
A company named Ambidant promised people 40% returns on their investments. When people fell into this trap and never received any returns, based on complaint Enforcement Directorate intervened. The owner of the company was identified as Fareed.

Further into the investigation a transaction of Rs 18 crore was traced. This transaction was traced to Ramesh Kothari, owner of Ambika Jewellers. It was further traced to a man named Ramesh who said that money was given to Janardhana Reddy's personal assistant Ali in the form of gold bars.

Kothari on questioning said he had given 57 kg of gold to a jeweller named Ramesh, who runs Raj Mahal Fancy Jewellers in Ballari.