According to sources, the CBI team belonging to the Banking Security and Fraud Cell from Bangalore landed in the city on Saturday morning and began quizzing Venkattram Reddy on the fraud charges at the CBI local headquarters at Koti.
Later, around 5 pm, the CBI formally arrested the DCHL chairman. He was then taken in the CBI vehicle to Osmania General Hospital before being produced before a magistrate at his residence in Secunderabad. Venkattram Reddy could be either sent to jail or the CBI could seek his custody.
Both DCHL and its chairman are facing several charges of fraud and criminal conspiracy filed by financial institutions from whom the company took loans.
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