CBI sources said the arrest was in connection with a case registered by it against the company Deccan Chronicle Holdings Limited in July 2013 on the basis of a complaint from Canara Bank, Bangalore.
The agency had registered a case of alleged cheating and criminal conspiracy against Venkatram Reddy in 2013. The Bank had refused to restructure the loan taken by the company that had remained unpaid.
Reddy was taken into custody by a CBI team from Bangalore after a brief questioning, sources said.