It is known news that the Central Crime Branch Police of Bengaluru took up investigation against mining baron Gali Janardhan Reddy in the Ambidant chain-link marketing scam. Janardhan Reddy, as per the police claim, had assured the Ambidant company’s owner, Syed Ahmed Fareed, of bailing him out in the case investigated by the Enforcement Directorate, in return for 57 kg gold. But Reddy is on the run after the police named him in this Ponzi scam.

Latest update is that mining baron Gali Janardhan Reddy has surrendered himself to the police at the Central Crime Branch office of Bangalore police at 3.50 pm today. Also, he refuted media allegations that he is absconding. He also said he would cooperate with the investigation. Janardhana Reddy came to the crime branch police along with his lawyers.

On Friday, the central crime branch (CCB) officials issued a notice to Ali Khan and Reddy to appear for interrogation in 48 hours. Now Police took Gali into custody.

A city court on Friday declined to grant anticipatory bail to Karnatakaa’s mining baron Gali Janardhana Reddy, who fears arrest by the state’s Central Crime Branch (CCB) in a Ponzi scheme-related case.

“Additional Sessions Court Judge Vidyadara Shirahatti said he cannot grant anticipatory bail to my client (Reddy) without hearing the prosecution side and adjourned the case to Monday (November 13),” Reddy’s senior counsel C.H. Hanumantharaya told reporters here.

Though the CCB summoned Reddy for interrogation in the Ponzi scam, in which he is accused of shielding its perpetrators from being investigated by the Enforcement Directorate (ED), Hanumantharaya alleged that the CCB had wrongly framed his client in the case, as his (Reddy’s) name was not in the FIR filed against Ambidant Marketing Ltd suspected to be behind the scam.

When the judge asked the counsel the urgency in seeking anticipatory bail as Reddy was legally bound to appear before the CCB in response to its summons, the counsel said the police was searching for Reddy and raided his residence in the city and Ballari on Wednesday and Thursday in connection with the scam.

Reddy, a former BJP Minister in the state, is on bail in the multi-crore mining scam that rocked the southern state for over a decade from 2002-12.

“The judge has issued notice to the prosecutor for filing objections, if any, against Reddy’s petition for anticipatory bail,” said his counsel.

Reddy’s counsel also sought a court directive to the CCB for changing the investigation officers, as the Ponzi case does not come under their jurisdiction.

The ED on Thursday charged Ambidant owners Syed Fareed Ahmed and his son Syed Afaq Ahmed with running a potential Ponzi scheme offering huge interest to investors in the name of ‘Islamic banking’.

“Investigation revealed that the city-based Ambidant Marketing Ltd has been operating a potential Ponzi scheme and duping hundreds of investors in the name of Islamic banking and ‘Halal’ investment,” the ED said in a statement here.

Since its inception on December 20, 2016, the company is alleged to have received a whopping Rs 954 crore as investments under Haj/Umrah and Ultimate plans.

Interrogation of the Ahmeds (father and son) revealed that the duo had allegedly gifted Reddy 57 kg gold valued at Rs 18 crore through his personal assistant Ali Khan for bailing them out of the cases from the police and the ED.

Troubles multiplied for mining baron Gali Janardhan Reddy after the Central Crime Branch Police of Bengaluru took up investigation into the Ambidant chain-link marketing scam. The police began searches for Reddy in Bellary, Hyderabad and Bengaluru. They have also issued a lookout notice for Reddy formally.

Commissioner of police T Sunil Kumar has spoken about Gali Janardhan Reddy’s involvement in the multi-crore bribery scandal. The police have already gathered evidence of Rs 18 cr funds transaction between certain firms linked to Ambidant and Bellary. Ambidant owners were accused of cheating innocent depositors upto Rs 600 crore in just three years. They lured depositors by promising to get 30 to 40 per cent profits on their deposits.

Following complaints, the Enforcement Directorate officials have already raided Ambidant several times. Gali Janardhan Reddy was accused of trying to bribe one ED official to save Ambidant. The police lookout notice came just two days after Janardhan Reddy suffered electoral losses with BJP losing Bellary Bye-poll.

Bengaluru CBI officials are on the lookout for mining baron and former Karnataka minister Gali Janardhan Reddy in connection with Ambidant chain link marketing scam. Ambidant is facing raids from Enforcement Directorate on charges of cheating consumers. To get a relief from these raids, Ambidant owners were stated to have reached a deal to give Rs. 20.5 crore to Gali brothers to influence the ED and other central officials.

The CBI has already traced transaction of Rs. 18.5 crore Bengaluru to Bellary meant for transfer allegedly to Gali brothers. As part of further investigation, CBI officials began searches for Gali Janardhan Reddy who has been absconding for several days. As per mobile phone signals, he is staying in Hyderabad.

The CBI lookout came as another blow to Janardhan Reddy who is already in shock after BJP suffered humiliating defeat in Bellary bye-poll. The mining baron has been facing illegal mining cases for long.
After the latest debacle, political circles are rife with rumours that Janardhan Reddy is going to face a real tough time in coming days. With BJP out of power in Karnakata, Janardhan Reddy is expecting hurdles from the Congress-JDS government as well.