HYDERABAD: Andhra Pradesh High Court today set aside the order of a lower court which had granted CBI a further custody of V Vijay Sai Reddy, vice chairman of Jagati Publications and an accused in the disproportionate assets case against Y S Jaganmohan Reddy.
High Court said that the special court for economic offenses could not have passed the order. The central agency should approach the regular court for this purpose, it said.
Economic offenses special court, which had heard the case last Tuesday as the special CBI court's judge was on leave, heard the case yesterday too, granting CBI further custody of Vijay Sai Reddy till January 17.
CBI arrested Vijay on January 2, and has alleged that he was the kingpin of the conspiracy in parking the ill-gotten money by floating fictitious firms.
In the FIR against Jaganmohan and 73 others (including Vijay Sai), CBI alleges that several investors, who were beneficiaries of government favours, invested in the companies promoted by Jagan at very high premiums as a quid-pro-quo, when his father, the late Y S Rajasekhar Reddy was the Chief Minister.