When the bail applications came up before single judge, Justice V Jagannathan, senior counsel for Naidu, C V Nagesh, said there was no prima facie evidence indicating commission of offence by the first accused (Naidu).
Since the arguments remained inconclusive, the court adjourned hearing to tomorrow.
On August 8, Naidu, his city corporator son Katta Jagadish and his associate S V Srinivas, were remanded to judicial custody by a Lokayukta court after it rejected their bail applications.
They subsequently approached the High Court.
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