Rowdysheeter Yadagiri Rao, accused in the bail scam involving mining baron Gali Janardhan Reddy, was arrested in Ooty on June 30 but not in city on July 2 as claimed by the Anti-Corruption Bureau (ACB), his lawyer informed a court here on Friday.

He opposed the ACB’s petition seeking five day police custody of Yadagiri Rao for further interrogation on the ground that the agency had misled court on every issue. The ACB abused the power of taking accused into custody for the purpose of implicating people who were no way connected with the case, he said.

It had stated in its remand report that the Swift car purchased by Yadagiri with the money received from Janardhan Reddy’s relatives was parked in front of his house when it was seized.

However, the fact was Yadagiri himself handed it over, Mr. Sharat Kumar, the lawyer said.

On May 25, the CBI searched his house and found nothing. However, the ACB came up with a false story on July 2 that it recovered Rs. 3.75 crore. There is no need for Yadagiri’s custody, he added.

The public prosecutor of ACB, H. Venkatesh, said the agency collected certain leads to investigation when Yadagiri made a confession before it initially.

They had to be followed up by further questioning.

He also said the Rs. 9.5 crore given to Yadagiri by Janardhan Reddy’s relatives had to be accounted by interrogating him.

The court reserved order for Saturday.