S.P.Y Reddy’s house was raided by the CBI on Saturday.
The CBI raids were triggered by alleged Rs 500 crore worth loan defaults to banks.
The Hindu reports, the CBI raids were caused by alleged loan defaults to banks.
“According to sources, Mr. Reddy had taken loans to support and expand Nandi group of Industries, which is the manufacturer of PVC pipes and other plastic products,” it added.
Mr Reddy, who was elected to Lok Sabha from Nandyal on YSR Congress Party ticket, has joined the Telugu Desam Party, even before swearing as an MP, on 25 May 2014, which is set to form the Government in the residual state of Andhra Pradesh.
Now he is in JanaSena Party and contested as an MP from Nandyala constituency in recently ended elections.