The Central Bureau of Investigation arrested Kadapa MP and President of Y S R Congress Party, Mr Jaganmohan Reddy, in the illegal assets case on Sunday.

“The CBI announced Mr Jagan's arrest at 7.20 p.m. today,” Mr Jupudi Prabhakar, MLC and leader of YSR Congress Party, told newspersons outside the CBI's temporary office at Dikusha Guest house here. He will be produced before the CBI special court on Monday morning.

Mr Reddy, son of former chief minister, Mr Y. S. Rajasekhara Reddy, was arrested after he was questioned along with his financial advisor and accused number two in the case, Mr Viajayasai Reddy, for three consecutive days.

Mr Reddy's family members, including his mother Ms Vijayamma and wife Ms Bharthi, had met him at the CBI's office after his arrest was announced.

According to sources, Mr Jagan was questioned by the CBI Joint Director, Mr Lakshmi Narayana, and senior officials from the Enforcement Directorate, New Delhi on the Vanpic business deal and the source of investments in Jagathi Publications, Indira Television, Janani Infra and Bharathi Cements.

Matrix Labs founder and industrialist, Mr Nimmagadda Prasad, and former minister for investments, Mr Mopidevi Venkataramana, who were already arrested in the case were also simultaneously questioned.

The AP High Court directed the CBI to probe Mr Jagan's assets in July 2011 in response to a petition filed by Mr Sankar Rao, a Congress leader, and three charge-sheets have been filed so far.

Mr Reddy's arrest assumes significance as by-polls are scheduled to be held in the State on June 12 for one Lok Sabha and 18 assembly seats. The Y S R Congress party had called for a State-wide bandh on Monday in protest against Mr Reddy's arrest.

>nagsridhu@thehindu.co.in

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