Reddy is considered a close associate of Jagan and his family for more than 3 decades. The arrest is significant as this is the first arrest in the disproportionate assets case slapped on Jagan. Vijay Sai Reddy is the second accused and is the auditor of Jagathi Publications Private Limited (JPPL).
The CBI investigating the case also carried out searches at the offices of 'Sakshi', the media establishments owned by Jagan. The Kadapa MP owns a Telugu daily and a popular television channel.
CBI Joint Director VV Lakshminarayana confirmed that Reddy has been arrested and said, “We arrested him at 7 pm and will produce him in the court tomorrow (Tuesday).”
Reddy's arrest is touted to reveal vital clues on the massive amassing of wealth by the Jagan family. He was also the auditor of former CM YS Rajasekhara Reddy and is understood to be aware of most inside information. He has been charged under even sections of Indian Penal Code including those relating to cheating and abatement.
The CBI had earlier registered a case against Jagan in Aug 2011 following a petition filed by State Minister P Shankar Rao and leaders of Telugu Desam Party (TDP).