Hyderabad, May 16 (IANS): The Central Bureau of Investigation (CBI) Tuesday night arrested prominent industrialist Nimmagadda Prasad and Indian Revenue Services (IRS) officer Brahmananda Reddy in the case relating to alleged illegal assets of YSR Congress Party leader Y.S. Jaganmohan Reddy.

The arrests were made after the CBI officials questioned them throughout the day. CBI Joint Director V.V. Lakshminarayana told reporters that they would be produced in the court Wednesday.

The official said they were arrested on the basis of evidence found against them in the investigation into concessions given to Vadrarevu and Nizampatnam Port and Industrial Corridor (VANPIC). "We need to interrogate them further," he said.

Prasad, popularly known as Matrix Prasad in the industrial circles, is the 12th accused in the case.

The CBI officials also raided the residence of Brahmananda Reddy, who was special secretary, infrastructure and investment in the government of Y.S. Rajasekhara Reddy. He allegedly issued government orders benefiting companies which invested in the businesses of Rajasekhara Reddy's son Y.S. Jaganmohan Reddy.

The second and third accused to be arrested in the case, Prasad and Brahmananda Reddy have been charged with cheating, criminal conspiracy, criminal breach of trust and falsification of accounts.

Prasad allegedly invested Rs.504 crore in the companies of Jaganmohan Reddy in return for the favours he reportedly received from his father and then chief minister Y.S. Rajasekhara Reddy.

Prasad's Matrix Enport is one of the two promoters of VANPIC. The government of Rajasekhara Reddy had allotted 5,500 acres of land to VANPIC in Prakasam and Guntur districts.

The CBI made the arrests as it is gearing up to file fourth charge sheet in Jaganmohan's disproportionate assets case. Prasad and Brahmananda Reddy are likely to figure in the charge sheet.