HYDERABAD: Jagati Publications vice-chairman V Vijay Sai Reddy was on Tuesday remanded to 14-day judicial custody by the special court for CBI cases in a case related to alleged illegal assets of Kadapa MP YS Jagan Mohan Reddy.
Sai Reddy, who is accused No 2 in the case, has been termed as the `kingpin of the entire conspiracy' by the CBI. He had exclusive knowledge of persons involved in the scam and the modus operandi of the illegal transactions made by the other accused.
But he he was not revealing anything despite being questioned several times, the CBI told the court while seeking his custody for 14 days. Reddy was sent to the Chanchalguda central prison after being remanded till January 17. He was arrested on Monday night and produced in the court on Tuesday evening.
In its custody petition, the investigating agency took the name of the then chief minister (YS Rajasekhara Reddy) in one of the transactions and felt that he `might be' the real beneficiary of the transaction.
Soon after arresting him, the CBI conducted searches at Vijay Sai Reddy's residence at Film Nagar and offices at Road No 1, Banjara Hills.
As soon as Reddy was produced in the court, the CBI sought police custody of the accused for at least two weeks to interrogate him. The defence lawyer strongly opposed the petition, saying that the CBI court was not competent enough to remand his client in police custody.
"CBI's remand report only mentioned about the involvement of some public servants, though their identification is not yet known,'' counsel for Vijay Sai Reddy, Umamaheswar Rao contended.
During the proceedings, Vijay Sai Reddy requested the court to allow him to assist his counsel. He also alleged that the remand report of CBI linking him to the case was nor fair.
The CBI's counsel argued that Vijay Sai Reddy was having an exclusive knowledge about the case. Hence the request for his custody for further interrogation. Sai Reddy also worked as the financial advisor to Jagan's group of companies, besides being the family auditor for the late YS Rajasekhara Reddy.
After hearing the arguments, judge Naga Maruti Sarma remanded Viay Sai Reddy in judicial custody till January 17 and adjourned the hearing on arguments on the plea for police custody till January 4. Vijay Sai Reddy had last month accused the CBI of overstepping its brief and going beyond the scope fixed by the High Court in its probe against the Kadapa MP.
He had requested the court to restrain the CBI from investigating into Jagan firms' transactions and affairs that took place prior to May 2004. However, the court dismissed his petition.
Earlier, medical tests were conducted on Vijay Sai Reddy at the central excise hospital at Basheerbagh.