Seeks court’s permission to question mediator P. Yadagiri Rao

The Enforcement Directorate (ED) has initiated a probe into the cash-for-bail scam involving former Karnataka Minister Gali Janardhan Reddy under the provisions of the Prevention of Money Laundering Act (PMLA).

The ED filed a petition in the Principal Special Court for ACB & SPE cases here on Tuesday seeking the court’s permission to question mediator in the scam P. Yadagiri Rao, the eighth-accused in the case, and is in judicial custody since July 3 last year.

The mediator was arrested on July 2 last and is lodged in Cherlapalli jail. The ACB, which is probing the case, had recovered Rs. 3.75 crore in cash during a search in Yadagiri’s residence at Nacharam.

In the petition filed by Assistant Director of ED B.S. Gandhi, the ED sought to question the mediator on the source of the huge cash recovered from his residence and record his statement. He was planning to question him from the angle of PMLA violation in possessing such huge unaccounted-for cash after getting the court’s nod, sources said.

The investigating agency had also recovered Rs. 2.74 crore kept in the lockers of T. Pattabhirama Rao, the then judge of the First Additional Special Court for CBI cases, who granted bail to Janardhan Reddy on May 11 last, in a bank branch in Ashok Nagar.

Another Rs. 36 lakh was recovered from N. Saibaba who had received the money from Yadagiri.