YSR party leader J. Prabhakar Rao told reporters outside Dilkusha Guest House, the CBI camp office, that the CBI has arrested Jagan, as the young leader is popularly known.
The MP and son of late chief minister YS Rajasekhara Reddy was arrested after the CBI grilled him for the third consecutive day.
Anticipating violent protests by the supporters of Jagan, police went on high alert across the state.
Police stepped up security at the guest house, Jagan’s residence and YSR party office and at other important places in the state capital.
Security was also tightened in the districts. Policemen were out on the streets while leaders and activists of the YSR party were also arrested at some places. The state-owned road transport corporation stopped plying its buses as a precautionary measure in some districts.
Prabhakar Rao appealed to YSR party cadre to remain peaceful.
Jagan, as the Kadapa MP is popularly known, did not come out of Dilkusha Guest House even after 7 pm, triggering speculation that the investigating agency had taken him into custody.
Jagan, who was grilled for eight hours on Friday and Saturday, remained inside the guest house, adding to the tension among his supporters.
The arrest was confirmed when Jagan’s mother Vijayamma and other family members drove to the guest house to meet him. At this juncture, Prabhakar Rao came out of the guest house to confirm the arrest.
Jagan, one of the richest MPs in the country with declared assets of Rs.356 crore, was arrested a day before he was scheduled to appear in the CBI court with regard to first of the three charge sheets filed so far by the investigating agency.
The young leader and 71 others were booked by CBI in August last year after Andhra Pradesh High Court ordered a CBI probe, acting on the petitions filed by Congress leader P. Shankar Rao and some Telugu Desam Party (TDP) leaders.
Jagan is accused of amassing huge wealth after his father became the chief minister in 2004. The CBI believes that Jagan conspired with his father to dole out favours to certain companies in return for the investments they made in his firms.
Jagan, who the accused number one, is the fifth one to be arrested in the case. The CBI Thursday arrested Excise Minister Mopidevi Venkataramna for his role in issuing government orders alloting lands to Vanpic company for a port project.
Industrialist Nimmagadda Prasad, one of the promoters of Vanpic, and bureaucrat K.V. Brahmananda Reddy are already in judicial custody. Their 10-day CBI custody ended Sunday.
Jagan’s auditor Vijay Sai Reddy was the first accused to be arrested last year. He was recently released on bail.
Jagan reached the guest house Sunday at 10.30 am. He was accompanied by Congress MP Sabbam Hari and Congress legislators Alla Nani and S.Krishna Rao.
A few minutes before Jagan reached the guest house, Vijay Sai Reddy reached there with his lawyer. He was also questioned by the CBI.
The CBI also grilled Prasad and Brahmananda Reddy. However, Venkataramna, who was arrested four days ago, was Sunday rushed to a corporate hospital after he complained of uneasiness. He was discharged and brought back to the guest house after few tests and treatment.
The agency grilled Jagan as to how his wealth increased dramatically after his father became the chief minister in 2004 and how investments flowed into his companies. [IANS]