TDP leader Palakurthi Tikka Reddy was arrested on Monday for allegedly duping a Karnataka businessman to the tune of Rs 13 crore, police said.
A case was registered based on the complaint of Shivraj C Agadi against 52-year-old Reddy, who unsuccessfully contested from Mantralayam assembly constituency in the last elections.
Agadi, who hails from Karnataka, is the Managing Director of C Y Agadi Rice Traders, which deals in buying and selling of spoiled rice to poultry industries and breweries.
According to Cyberabad Police Commissioner VC Sajjanar, Reddy and two others allegedly approached Agadi with a proposal to sell two lakh tons of spoiled rice.
In his complaint, Agadi has alleged that Reddy claimed that spoiled rice was stocked at Food and Civil Supplies godown that belong to the state government in Kurnool Town.
The complainant further said that Reddy and others took him to Kurnool to show stock. Later, Agadi paid Rs 12.85 crores on the specific instructions of Reddy.
The police said that accused delayed the supply of spoiled rice when it was demanded by businessman Agadi who later found out that the challan given by Reddy was fabricated and realised he has been cheated.
"Reddy had presented a challan claiming that had paid 16 crores to the Government of Andhra Pradesh for storage of the spoiled rice", the complainant claimed.
After making the arrests, the police have also seized a car and two cell phones from Reddy's possession and booked him under Section 406, 420, 468, 471 120(B) of the Indian Penal Code.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)