K S Somashekhar, who is also the owner of a transport company, was picked up and questioned for his alleged role in illegal export of iron ore from Belekeri port from January 2009 to May 2010, CBI officials said.
With this arrest, the total number of those arrested in the case has risen to fifteen, they said.
After questioning Somashekhar, he was taken to Bangalore and produced before the CBI Court, CBI officials said.
While some of the accused are lodged in Parappana Agrahara jail in Bangalore, Reddy is in Chanchalguda jail in Hyderabad in connection with ongoing probe in Obalapuram Mining company case.