Police Launch Lookout for Janardhana Reddy
Ponzi scheme leaves 15,000 people cheated to the tune of ₹ 600 cr
Benga lu r u : A d ay a f t er t he November 3 bypoll results were announced, the Bengaluru City Police formed a team to arrest former mining baron and tourism minister G Janardhana Reddy in connection with a big-ticket Ponzi scheme that left about 15,000 people cheated in the city.
Reddy, a disgraced mining baron and suspended BJP member, is barred by courts from entering Bellary district. He, however, remotely campaigned for J Shantha, sister of BJP MLA B Sriramulu in the Lok Sabha polls from the border areas of Ballari. Sriramulu, however, denied knowledge of Reddy’s latest troubles, while the BJP distanced itself away from the police case. Bengaluru Police Commissioner T Suneel Kumar and other senior officials gave details of the case at a media-conference on Wednesday.
In May this year, the Devarajeevanahalli Police in the city had registered a case of cheating against Syed Ahmed Fareed, who ran a firm called Ambident Marketing. He had allegedly collected deposits worth ₹ 600 crore from more t han 15,0 0 0 people promising them returns of 40% to 50% for a four-month period. The City Police Commissioner later transferred the case to Central Crime Branch (CCB) in view of its enormity.
The CCB police arrested Fareed, and on questioning, they learnt he had invested the money with many people and indulged in unlawful financial activities. The police alerted the Enforcement Directorate (ED) which raided his home and offices, and froze his bank accounts subsequently. Fareed also revealed Reddy’s link in the case.
The Police said Fareed negotiated a deal with Reddy’s assistance Ali Khan and offered a bribe of Rs 20 crore to Reddy in return for his help in bailing him out of the ED case. Reddy, however, demanded t he money in t he form of gold. Ali Khan allegedly helped Fareed to cont act Ramesh Chatrasal of Rajamahal Fancy JewellersinBellaryto take the deal forward. Chatrasal bought 57 kg of gold worth ₹ 18 crore from Ramesh Kothari of Ambika Sales Corporation in Bengaluru and allegedly delivered it to Reddy.
According to the city police, the CCB sleuths have arrested Ramesh Chatrasal, and launched manhunt for Reddy and his assistant Khan. Meanwhile, Chatrasal and Khan are learnt have secured a bail, while Reddy has applied for one.
The police alerted the ED which raided his home and offices, and froze his bank accounts subsequently
Central Crime Branch Police raid Janardhana Reddy’s Parijatha apartment in Bengaluru on Wednesday.