The CBI has made its first arrest in the Emaar scam case on Thursday by taking into custody businessman, Koneru Prasad.

The arrest comes a day before Kadapa MP Y S Jagan Mohan Reddy will be questioned by the investigators from the agency on the illegal mining case that also involves Gali Janardhan Reddy.

Koneru Prasad works as a managing director of Stylish Homes, the company which played the role of the marketing agency in the sale of villa plots developed by Emar-MGF in the Emaar Hills Township at Nanakramguda area near Hyderabad. He is accused of selling plots and apartments at Rs 25,000-50,000 per square yard while showing only Rs 5,000 in records.

"Koneru Prasad sold the plots at much higher value than Rs 5,000. He is the man who negotiated and brought this project here and made a huge amount of black money. We will seek his custody for 15 days for interrogation," CBI joint director V V Lakshminarayana.

Prasad was taken at CCS and was presented on Thursday night and produced before a magistrate. CBI might also file a petition to confiscate his properties soon.