Reddy is a former BJP minister. He and his two brother wield enormous clout in Karnataka's Ballari.
Ballari mining baron and former BJP minister G Janardhan Reddy was arrested Sunday by the Bengaluru Central Crime Branch.
We have taken the decision to arrest him on the basis of credible evidence and witnesses statements. We will produce him before the magistrate. We are going to recover the money & give it to the investors: Alok Kumar, Additional CP, Central Crime Branch, #Bengalurupic.twitter.com/0MvDauU8mO
ANI added that the Central Crime Branch had also arrested Ali Khan, a close aide of Reddy's.
Reddy was arrested in connection with the alleged Ambident ponzi scheme.
Syed Ahmed Fareed, the owner of Ambident, had claimed he had paid Rs 18 crore to be let off when the ponzi scheme came to light. Fareed said Reddy, who had been a minister in the then BS Yeddyurappa government, had asked for the money during a meeting at a hotel.
Fareed said the money had been paid; that it had been routed to Reddy's aide.
Reddy and two brothers wield enormous influence in Ballari.
Janardhan Reddy himself had been disowned by Amit Shah during campaigning for the assembly elections held in the state in May this year.
But his two brother — Gali Karunakara Reddy and Gali Somashekhara Reddy — were given tickets by the party.
Last week, the BJP lost the Lok Sabha byelections from Ballari.