The project did not take off and subsequenly, Emaar transferred the 258 acres allotted to it to its subsidiary, and also diluted APIIC’s equity from 49 per cent to 26 per cent, without informing it, causing loss in share of profits to the state corporation and an estimated loss of Rs 4,130 crore to the state exchequer.

The CBI is investigating the alleged irregularities in land transfer done by Emaar, dilution of stake of APIIC, as well as alleged faking of accounts and sale of plots, bungalows and flats after land rates were undervalued for government records but later sold at market rates in the township at Manikonda.

Several politicians, Telugu filmstars and industrialists bought properties in the Emaar township.

The CBI, which has recorded statements of many of them, named Acharya as the third accused in the FIR it filed on August 17 last year, and had raided his house on August 25 and questioned him nearly 12 times. The charges against him include cheating and criminal conspiracy under the Prevention of Corruption Act.

Today morning, when Acharya was called for questioning at the CBI field office at Dilsukh Guesthouse, the agency told him he was being arrested. He has been remanded to two days in CBI custody.

The others arrested in the case include real estate developer Koneru Prasad, who allegedly brokered deals on behalf of Emaar; Sunil Reddy, aide of Y S Jagan Mohan Reddy, who allegedly bought properties on behalf of front companies of Jagan Mohan; and former CEO of Emaar Properties Vijay Raghavan.

The CBI says that Congress Rajya Sabha MP K V P Ramachandra Rao, who was advisor to the Andhra government when APIIC share in the township was reduced, and then chairman of APIIC Ambati Rambabu besides B P Acharya had knowledge of the wrongdoings. Rao’s wife, incidentally, bought 1,277 sq yards in the township and his daughter’s father-in-law 1,260 sq yards.

Apart from Rao, Rambabu as well as Jagan Mohan have been called by the CBI to give their statements.

The buyers:

K Sunita, wife of Congress Rajya Sabha MP K V P Ramachandra Rao

K R R Krishnam Raju, father of KVP’s daughter-in-law

N Brahmani Naidu, daughter-in-law of TDP chief N Chandrababu Naidu

Tollywood couple G Mahesh Babu and Namrata Shirodkar

K Ram Charan, actor and son of K Chiranjeevi

Former APCC president D Srinivas and his son D Sanjay

Major Industries Minister J Geeta Reddy

Y S Vidya Reddy, wife of YSR’s cousin brother Y S Sudheekar Reddy

Muppavarapu Radha, daughter-in- law of senior BJP leader M Venkaiah Naidu

Galla Padmavathi, daughter- in-law of Mines and Geology Minister Galla Aruna Kumari

G Manjula, daughter of veteran Telugu actor Krishna