Mr Y.S. Jaganmohan Reddy, President of YSR Congress, was remanded in judicial custody for two weeks till June 11 by a CBI court here on Monday.
Mr Jaganmohan was arrested on Sunday evening in a disproportionate assets case amidst high security after three days of intensive grilling by the apex investigating agency.
The Principal Judge for CBI, Mr A. Pulliah, dismissed the CBI petition for 14 days remand while allowing a petition by the 39-year-old leader and son of late Chief Minister, Y.S.Rajasekhara Reddy, for special status as a prisoner.
He was later taken to the Chanchalguda jail amidst tight security.
During the proceedings, the CBI counsel argued that Mr Jagan did not cooperate during the interrogation and his release would enable him to influence people. He contended that Mr Jagan and his firms routed the bribe amount back into his firms through hawala transactions.
The central agency has charged Mr Jagan for criminal conspiracy, cheating, criminal breach of trust, falsification of accounts and under the Prevention of Corruption Act.
Mr Jagan's counsel had moved anticipatory bail last week but the court decided to take it up today. He contended that his arrest itself was illegal and aimed at keeping him away from poll campaign. There was no need to arrest him when he appeared before the CBI as sought by them.
He is amongst the richest MPs in the country having declared assets of Rs 356 crore.
The agency is probing the high valuations that Mr Jagan managed using a report purportedly prepared by consultancy firm Deloitte.
The agency probe is getting wider with several other business houses, ministers and bureaucrats likely to be questioned as the probe progresses.