Janardhan Reddy had demanded Rs 20 crore in form of gold bullion
Bengaluru, Nov 8: Karnataka's former minister Janardhan Reddy is on the run. The police have formed four special teams to nab him in connection with a ponzi scam.
The prime allegation against Reddy is that he had demanded gratification from one Syed Ahmed Fareed, the main accused in the same with the assurance that he would settled a case which is being probed by the Enforcement Directorate.
During the course of the investigation, Fareed had said that he had given Reddy 58 kilograms of gold worth Rs 18 crore after he had promised to settle the case being probed by the ED.
The allegation against Fareed is that his company Ambidant Marketing Pvt Ltd had allegedly cheated as many as 15,000 investors. He had promised 40 per cent per month on the investments.
When the ED had taken over the probe, Fareed allegedly contacted Reddy's close aid Ali Khan and sought help. Fareed is alleged to have held a meeting at the Taj West End with Reddy in March this year. Reddy is said to have demanded Rs 20 crore to be paid in the form of gold bullions.
Fareed is said to have bought 57 kilograms of gold worth Rs 18 crore and allegedly gave it to Reddy.