Assets case: Jagan Mohan Reddy's bail plea rejected

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YSR Congress leader Y.S. Jagan Mohan Reddy on Thursday suffered a fresh blow after his bail plea was rejected by a special court.

Fearing his arrest in connection with the alleged illegal assets case, Jagan filed the anticipatory bail petition in the Central Bureau of Investigation (CBI) court.

Speculation is rife that Jagan might be arrested three days before he is scheduled to appear in court on May 28.

Anticipating unrest, local police have issued prohibitory orders under Section 144 of the Code of Criminal Procedure (CrPC), banning assembly of five or more persons. Security has been stepped up across the city and its entry and exit points. The order came into effect from 6 a.m. on Thursday and will be enforced till May 29, Hyderabad Police Commissioner Anurag Sharma said.

Reddy has alleged that the Congress, the opposition Telugu Desam Party (TDP) and the CBI have framed him. In a letter to Prime Minister Manmohan Singh two days ago, he had claimed that a conspiracy was conceived to trigger riots after his arrest and place the blame on him.

The CBI court on Wednesday issued notices to Jagan asking him to appear before it. The Andhra Pradesh High Court had also rejected a petition by him seeking exemption from appearance.

Jagan is accused of conspiring with his father to dole out favours to companies that invested in his businesses in a quid pro quo arrangement.