The CBI court in Hyderabad posted further hearing on Reddy's bail plea to May 31 after asking the central investigating agency to file its counter.
The plea by Jagan came even as the Election Commission is understood to have taken a decision not to intervene in his arrest after his mother sought the poll body's intervention for his release in view of the by-elections. YSR Congress is contesting 18 Assembly seats and one Lok Sabha seat.
Jagan, who filed the bail plea through his counsel, requested that he be granted bail to enable him to campaign for the by-polls in the state for his party candidates.
"My client (Jagan) is the lead campaigner in the election campaign on behalf of YSR Congress party and all candidates", Jagan's counsel submitted.
In Delhi, the three-member Election Commission met under the chairmanship of Chief Election Commissioner S Y Quraishi and discussed the letter from Y S Vijayalakshmi, YSR Congress honorary president, seeking a direction from the Commission for her son's release.
Top sources in the EC said the Commission was not in a position to do anything in this regard as the matter was sub- judice and that a legal process was on.
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The YSR Congress leader was arrested on Sunday in the disproportionate assets case registered against him and was yesterday remanded to judicial custody till June 11. He has been lodged at Chanchalguda Central Prison.
As he awaits the outcome of his bail plea, troubles appeared to mount for Jagan with a team of Enforcement Directorate (ED) officials from Delhi arriving in Hyderabad and they will approach a local court for questioning him.
The team will get in touch with CBI officials probing the case to present its plea in court here for questioning Jagan, ED sources said today.
The ED has registered separate cases under the Prevention of Money Laundering Act (PMLA) and Foreign Exchange Management Act (FEMA) against the Kadapa MP, arrested by CBI on May 27, his associates and some civil servants, they said.