Janardhan Reddy to file contempt suit against ED for attaching his properties

The former minister and mining baron Gali Janardhan Reddy has threatened the Enforcement Directorate (ED) of filing a case of contempt of court against them for not releasing his attached properties.

The ED had attached Reddy's properties, Obalapuram Mining Company Ltd and Brahmani Industries Ltd worth Rs 885 crores in connection with cases of illegal mining in 2011. The Karnataka High Court had annulled the ED proceedings and had asked the agency to release the attached properties in 2017.

"I want the ED to release my properties as per the HC order and if they fail to do so I will file a case of contempt of court against the agency," he said. Janardhan Reddy and others were booked under the Mines and Minerals Development and Regulation (MMRD) Act, Forest Conservation Act, Indian Penal Code and Prevention of Corruption Act for offences they allegedly committed during a period that ended in July 2007, reports TOI.

Reddy appeared before the ED on Wednesday and was questioned about the dealings and his involvement in the multi-crore Ambidant Ponzi scam from afternoon till evening. The directors of Ambidant Pvt Ltd, Syed Ahmed Fareed and Syed Ahmed Afaq is said to have cheated their investors to the tune of Rs 800 crores.

According to the reports, after Fareed was arrested for running a Ponzi scam and had sought help from Reddy through one of his aides Ali Khan. Fareed had allegedly given Rs 20 crores in cash and gold to Reddy for his bail-out plan but Reddy had refused to this claim.

However, Reddy was arrested by the Central Crime Branch (CCB) sleuths on November 2018 but was let on bail three days later.