Janardhana Reddy arrested in growing iron ore scandal

G Janardhana Reddy, former minister and mining baron in Karnataka, was arrested on Monday in connection with a mining scandal that may have cost the state USD 3.6 billion in lost revenue, the CBI said.

Ten agents took Reddy from his home for in connection with the alleged illegal iron-ore mining case. Reddy, a powerful figure in the mining sector, has served as tourism and infrastructure minister for the opposition Bharatiya Janata Party (BJP), which governs Karnataka.

Karnataka's chief minister BS Yediyurappa has already resigned over the mining scandal, a growing embarrassment for the BJP, which is running an anti-graft campaign against the federal government.