B Nagendra is the third MLA to be arrested in the case.
BSR Congress MLA Suresh Babu, a nephew of B Sreeramulu, former minister and close associate of former minister and mining baron G Janardhana Reddy, was arrested on September 19 while Satish Sail, independent MLA from Karwar, was arrested the next day.
The MLA will be produced before the CBI special judge here tomorrow, the agency officials said.
Nagendra is a close associate of Janardhana Reddy, lodged in Chanchalguda jail in Hyderabad in connection with an alleged mining scam.
Those in custody include two former IAS officers and two Indian Forest Service officers.
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