Wanted in a fraud case Janardhana Reddy goes absconding

Bengaluru (Karnataka): The Central Crime Branch (CCB) of the Karnataka police has launched a hunt for Former Minister and mining baron Gali Janardhana Reddy, who has gone absconding after his name emerged in a Rs 18-crore ponzi case.

Reddy is suspected to have received 57 kg of gold worth Rs 18 crore to help an accused in a case being investigated by the Directorate of Enforcement (ED).

Along with Reddy, his secretary Ali, jeweler Ramesh Kothari and one other have been named as accomplices in the fraud case.

Karnataka commissioner of police, T Suneel Kumar while addressing a press conference here said, “a company Ambidant, set up in 2016-17 assured investors a return of 30-40% per month in form of profits. Thousands of people were lured to invest. Initially, they returned the first batch profits as promised following which more people poured in. Subsequently, when it failed to return the principal amount cases were registered. In January 2017, the enforcement directorate (ED) raided the company. The crime branch took over the case and a probe was conducted which revealed that transactions to the tune of Rs 18 crore were carried out.”

Later, it was discovered that the company had transferred the money to Ramesh Kothari who runs a bullion business in the name of Ambika Jewellers. On quizzing Kothari, he informed that he had used the money to buy the gold, which was handed over to Janardhan Reddy’s personal assistant Ali.

The cops further stated that Reddy is absconding and as of now no arrest warrant has been issued against him. “Reddy will be summoned for questioning as we need to recover 57 kgs of gold,” he said.

Not revealing the minute details of the investigation, the top cop said, “There are other people involved and if we disclose full details, there are chances that people might flee.”