Arrested under the Prevention of Corruption Act, they were earlier indicted by the Lokayukta over the illegal mining scam. The arrest this time around is for charges of criminal conspiracy and cheating. [Read: Meet Bellary Reddy, the Richie Rich] The illegal mining carried out by the Obulapuram Mining Company is under the scanner that has led to massive losses to the country's exchequer.
A 10 member team from Hyderabad of the CBI started raids at 5:30am. Media reports suggest that Janardhana Reddy was present at the residence when the CBI arrived there. They were arrested on the basis of an FIR filed in 2009. They have been taken to Hyderabad.
The Reddy Brothers have had to face a shameful exit from the Karnataka Cabinet after being named in the Lokayukta report. With the arrest coming as yet another insult to injury, only yesterday saw close Reddy-aide Sriramulu resigning as MLA.
The latest development is sure to have lasting repercussions on the BJP government in Karnataka that has only weathered a rough storm following the political crisis in Karnataka leading to the resignation of BS Yeddyurappa from the Chief Ministerial post.