The police had launched a hunt for him since Wednesday in connection with a money transaction worth crores of rupees, allegedly linked to a ponzi scheme.
Former Karnataka Minister G Janradhana Reddy was on Sunday arrested by the Central crime Branch in connection with the Ambidant ponzi scheme case.
Speaking to reporters, Additional CP, Central Crime Branch Alok Kumar said ; "We have taken the decision to arrest him on the basis of credible evidence and witnesses statements. We will produce him before the magistrate. We are going to recover the money and give it to the investors".
The Crime Branch has also arrested Ali Khan, a close aide of Reddy in connection with the case.
Reddy has been sent for medical examination.
Earlier on Saturday, Reddy, who had been 'missing' since last three days, appeared before the police. Reddy rebuked allegations against him as 'political conspiracy'.
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Hours after releasing a video in which Reddy said he would appear before police to face the probe, the mining baron came in a car to the Central Crime Branch office in Bengaluru, along with his advocates. Reddy said he has faith in the police.
The police had launched a hunt for him since Wednesday in connection with a money transaction worth crores of rupees, allegedly linked to a ponzi scheme.
The CCB was also on the lookout for Reddy's close aide, 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.
Bengaluru Police Commissioner T Suneel Kumar had said on Wednesday that Reddy was absconding and the police were looking for him to question him in the case.
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.
"Now that the notice has been issued by the police, I have decided to appear before the Central Crime Branch today itself though the notice says I should appear on Sunday," Reddy said.
"I decided to make this video to let people know the truth. I have faith in the police and believe that they would not succumb to any political pressure," he added.
