Former Karnataka minister and mining baron Gali Janardhana Reddy was remanded in 14-day judicial custody till November 24 on Sunday after he was arrested by the Central Crime Branch (CCB) for allegedly shielding a father-son duo who have been accused of running a Ponzi scheme in the name of 'Islamic Banking'.

The former minister, who is facing multiple charges of corruption, has already spent three years in jail. He was out on bail.

"We have taken the decision to arrest him on the basis of credible evidence and witnesses statements. We are going to recover the (Ponzi scheme) money and give it to the investors," a senior police officer of Bengaluru told media.

Meanwhile, Janardhana Reddy's lawyer, while speaking to the media said that his bail application will be heard by the court on Monday.