Hyderabad, Jul 4 (IANS): The Andhra Pradesh High Court Wednesday dismissed the bail plea of YSR Congress Party leader Y.S. Jaganmohan Reddy, who has been arrested in a case of amassing illegal wealth.

The court, which had reserved its order on June 28 on the illegal assets case, gave its ruling on a day his judicial custody is to be extended by the trial court.

Justice Samudrala Govindarajulu agreed with the view of the Central Bureau of Investigation (CBI) that if released on bail, Jagan, as he is known, may influence witnesses in the case.

Jagan, the son of late chief minister Y.S. Rajasekhara Reddy, was arrested by the CBI May 27.

The CBI had opposed the bail petition on the ground that he may tamper with the evidence and influence the witnesses.

CBI counsel Ashok Bhan argued that the case involved looting of massive public money. He said the favours doled out by Jagan's father and then chief minister Rajasekhara Reddy to companies which invested in his business cost the state exchequer Rs.43,000 crore.

Appearing for Jagan, senior Supreme Court lawyer Ram Jethmalani had argued strongly for the bail while describing the case against his client as politically motivated.

Jethmalani also alleged that Jagan's arrest was illegal and the CBI action amounted to contempt of court as he was scheduled to appear in the trial court the next day in response to the court summons.

The investigating agency has so far filed four charge sheets against Jagan and others in the case, which was registered last year on the direction of the high court.