The Telegraph (Calcutta)
January 23, 2000

CID Steps Into Slave Case

The Andhra Pradesh Criminal Investigation Department (CID) has started a probe into the case of Lakireddy Bali Reddy, a mega-rich Indian businessman facing sex smuggling accusations in Oakland, California.
Reddy, 62, described as the wealthiest landlord in Berkeley and Oakland across the bay from San Francisco, is behind bars now, facing charges of “importing aliens for the purpose of prostitution and other immoral purposes”.

Reddy may have the CBI too on his trail soon. The Andhra government is likely to request the agency to start an inquiry into the alleged sex racket.

Revered as a “philanthropist” back home in Andhra Pradesh, Reddy has also been accused of inducing immigrants to illegally enter and live in the US.

The US police believe Reddy, who was arrested on January 14, brought at least three girls to Oakland from Velvadam and Mylavaram near Vijayawada and used them as sex slaves.

Reddy has been accused of bringing more than 74 girls to the US over the last four years. He will remain in jail until authorities decide how much bail will be enough to prevent him from fleeing, a judge has ruled.

Reddy’s lawyer protests his innocence. A federal grand jury will hear the evidence against him.

The charges came after two girls suffered carbon dioxide poisoning in an apartment he owned.

Sitha Vemireddy, 17, and her 15-year-old sister Lalitha were found unconscious in their apartment on November 24.

Sitha died later. Lalitha, however, survived. Investigators suspect a faulty heater and, possibly, a blocked roof vent caused a rise in the level of carbon dioxide in the apartment.

An anonymous letter written by a villager of Velvadam in Krishna district, from where Reddy hails, to the US consulates in Chennai and Delhi also alerted authorities against Reddy.

A graduate in chemical engineering, Reddy came to Berkeley 40 years ago after the death of his wife. He worked in various companies and restaurants. Later, he set his up own chain of south Indian restaurants and other companies.

Investigations revealed that he had been importing teenage girls and men to work in his restaurants and companies.

Twenty-five temporary visas sanctioned to the “Active Tech Solutions”, a San Francisco based IT company belonging to Reddy, has been cancelled.

Sitha and her sister were allegedly married off to strangers in India and brought to US by Reddy to work in his house.

US police are on the lookout for the alleged husbands of the other girls imported by Reddy.

“At least 200 girls are working for him in various parts of US,” says Bobby Miller, police officer in Berkeley. “Most of the 1,200 Indians working in his companies are his bonded labourers,” he added.