A special CBI court on Monday reserved, till January 12, its order on the bail petition of industrialist Koneru Rajendra Prasad, an accused in the APIIC-Emaar township project case.

The CBI strongly opposed Mr. Koneru’s second bail plea on the ground that the IPC section 409 (criminal breach of trust by public servant) was applied against him, which mandated his detention in judicial custody for 90 days.

The CBI counsel further alleged that Mr. Koneru had received money to the tune of Rs 138 crore towards the plots developed by Emaar MGF in the controversial township project from buyers, after grossly undervaluing the market price, causing a huge financial loss to the joint venture company, in which, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) holds equity.

Mr. Koneru, chairman of Trimex group and also a promoter of the Stylish Homes Real Estate Private Limited, who is said to have been instrumental in finalising the deal between APIIC and Emaar, was arrested by CBI on November 3 last year, and is presently under judicial custody and lodged at the Chachalguda Central Prison here.

The defence counsel, however contended that section 409 of IPC was not applicable to his client and sought to know, why only his client has been arrested, even though the CBI FIR names several others.

The defence also sought Mr. Koneru’s bail on the health grounds, saying during the recent health-screening conducted by the jail authorities, it was found that he was suffering from ‘ailments’.

The court, which had last month dismissed his first bail application, after hearing arguments of both the sides, reserved its orders till January 12 today.

The AP High Court had, on August 10 last year, ordered a CBI inquiry into the land allotments made to Emaar during the Y S Rajasekhara Reddy government and dilution of the stake of APIIC in the joint venture with Emaar for the development of the township project.

The CBI had registered a case in the alleged irregularities in APIIC-Emaar Properties land deal in August last year against Emmar-MGF, its sister concern and others on allegations that favours were granted to it by the State government officials in the execution of a posh real estate project at Manikonda here.