The Central Bureau of Investigation (CBI) officials on Sunday arrested YSR Congress Party chief and Kadapa MP Y S Jaganmohan Reddy after grilling him for the third day in a row in connection with the illegal assets case against him.

Jaganmohan Reddy
YSR Congress Party President Jaganmohan Reddy Wiki Commons

According to reports, Jagan was taken into CBI custody at 7.20 pm after he was inquired for the third day at the Hyderabad Dilkusha Guest House. Jagan will reportedly be held at the guest house tonight and may be produced in court on Monday.

"He was arrested.This is a conspiracy hatched before and we were prepared to face any consequence," said a spokesperson of the YSR Congress, Ambati Rambabu.

He also said that peaceful demonstrations would be organized on Monday and indicated a shutdown soon.

Jagan's mother and wife are said to have visited him in the CBI office.

According to a Hindustan Times report, Jagan has been booked under the sections 120 B (Criminal Conspiracy) read with 420, 468 (Forgery), 409 (Criminal Breach Of Trust), 477/A (Falsification of Accounts), Prevention of Corruption Act (1980) 13/1 and 13/2.

Security measures have been beefed up in Hyderabad in case Jagan's supporters take to violence.

On Sunday morning, Jagan reached the CBI office along with his financial advisor Vijay Sai Reddy, who is also facing the charges in the case, amid tight security.

The CBI questioned Jagan for nearly eight hours earlier on Friday and seven hours on Saturday. According to TV reports, the CBI on Saturday questioned Jagan on the Vadarevu and Nizampatnam Ports and Industrial Corridor (VANPIC) deal in the presence of industrialist Nimmagadda Prasad and senior official KV Brahamandna Reddy, who are already arrested in connection with the illegal assets case.

According to the sources, Prasad is one of the alleged beneficiaries of the then YS Rajasekhara Reddy government and he is the promoter of the controversial VANPIC project. Prasad has allegedly invested about Rs 8.5 billion (850 crore rupees ) into Jagan's business, which is touted as kickbacks for land allotment granted to the VANPIC project by the YSR regime.

Jagan has reportedly said that he is being targeted by the ruling Congress, the Telugu Desam Party (TDP) and the CBI ahead of the by-elections in the state next month.

"I am being targeted by the ruling Congress, which has colluded with other political parties and the CBI to implicate me in false cases," Jagan told reporters.

He alleged the Congress and other opponent political parties have conspired against him to end his political career.

Jagan has been accused in a disproportionate assets case in which he claims innocence. He is facing charges of conspiracy for favouring some companies along with his father, the then AP chief minister YS Rajasekhara Reddy.  The beneficiary companies, in turn, invested huge money into Jagan's business in a quid-pro-quo agreement.

(with inputs from IBNS)