The residence of sitting Nandyal MP and Jana Sena Party (JSP) leader S P Y Reddy was raided by the Central Bureau of Investigation (CBI), for allegedly defaulting on loans worth Rs 500 crore. Officials descended on the residence and spoke to S Sridhar Reddy, the MP's son-in-law and the Managing Director of the Nandi group of industries, which is presently under the scanner.
According to media reports, Reddy had taken the loans from numerous banks including State Bank of India and Syndicate Bank to expand his group of industries.
The company's website states, "The group was started as a small unit of manufacturing of plastic containers in 1978. It was later expanded to manufacturing of PVC and allied pipes. The group is a major player in agricultural pipes, casing pipes, plumbing pipes, electrical pipes and sewer pipes. It also major player in water storage tanks and solvent cements. Over the last few decades, the group has diversified into different businesses and has presence in cement, infrastructure, Tmt bars, agro products and dairy industry."
The raids which began on Saturday and continued till late in the night, were carried out even as the 68-year-old MP is presently undergoing treatment at a private hospital in Hyderabad's Banjara Hills.
A local strongman in Nandyal, S P Y Reddy won the MP seat twice for the Congress and contested 2014 elections on a YSRCP ticket, defeating his nearest rival N M Farooq of the TDP by over one lakh votes.
After winning the election on a YSRCP ticket, S P Y Reddy switched loyalty to the TDP. However, with the TDP denying him a ticket, he entered the fray as the candidate of Jana Sena of actor Pawan Kalyan in the recently-concluded polls which were held on April 11.
The results of the election will be announced on May 23.