Rediff On The NeT: NRI sex scandal accused gets bail: AFP

A wealthy Indian businessman suspected of bringing young girls to Oakland, California from his homeland to be sex slaves has been released from jail on 10 million dollars bail, officials said.

Lakireddy Bali Reddy, 62, faces charges of "importing aliens for the purpose of prostitution and for other immoral purposes" and of inducing immigrants to illegally enter and live in the United States.

But as court officials worked out the conditions of his release on Tuesday, the police arrested his son on suspicion of falsifying documents and taking part in a scheme to bring illegal immigrants from India.

Reddy is the largest single landlord in Berkeley, with property holdings estimated at between 50 million and 60 million dollars.

Members of Reddy's family who attended his Tuesday bail hearing spent nearly an hour signing over 10 million dollars worth of property as collateral to insure Reddy does not flee the country.

Reddy's son Vijay was holding his 18-month-old twin children when the police took him into custody during his father's hearing.

Vijay Reddy is charged with faking skilled worker visa applications for Indian migrants who ended up working for low wages at his father's rental properties or the family restaurant in Berkeley.

Vijay was released after assuring authorities he would appear for a hearing on Friday.

The Berkeley police are also looking into reports that nearly a dozen young Indian girls who had been doing maintenance or cleaning jobs at Reddy's buildings or for his company, L B Reddy Realty, have been secretly whisked back to India to keep them from talking to authorities.

The case against Lakireddy Reddy developed after Sitha Vemireddy, 17, died of carbon monoxide poisoning in one of his Berkeley apartments.

Sitha and her 15-year-old sister were found unconscious in the apartment on November 24. Sitha died, but her sister -- who was not identified due to her age -- recovered.

Sitha's sister told investigators she was given to Reddy at age 12 by her parents, and that their sexual relationship continued after both girls came to the United States in August.

A woman who lived in the apartment with the sisters has also told the police she was 14 when she was sold to Reddy, who brought her to California.

US immigration officials said they began watching Reddy several years ago, after anonymous allegations that he was bringing people in from India illegally. Investigators for the Immigration and Naturalisation Service allege Reddy had paid Venkateswara Vemireddy and his sister Lakshmi Garireddy to pose as the parents of Sitha and her sister and escort the girls into the United States.

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