Amid reports that he may be arrested, Kadapa MP YS Jaganmohan Reddy on Friday appeared before the CBI here in connection with the alleged disproportionate assets case against him.

Fearing breakdown of law and order situation in view of Jagan's appearance before the CBI, the Hyderabad Police have clamped prohibitory orders under Section 144 CrPc in the city besides strengthening security in and around the Dilkhusa Guest House where a large number of police and RAF personnel have been deployed.

The probe agency wants to question Jagan on the Vadarevu and Nizampatnam Ports and Industrial Corridor (VANPIC) deal in the presence of industrialist Nimmagadda Prasad and senior bureaucrat K V Brahamandna Reddy who are already under arrest.

Prasad is the promoter in the VANPIC deal and allegedly invested Rs 850 crore in the business of Jagan for land allotment made to the VANPIC project by the then YSR regime on quid-pro-quo basis.

The CBI had yesterday arrested Andhra Pradesh Excise Minister Mopidevi Venkataramana in connection with the VANPIC project.

The Andhra Pradesh High Court asked Jagan on Wednesday to comply with the CBI directive and appear before the investigation agency on May 25.

The CBI court here yesterday had declined to grant him interim anticipatory bail even as Jagan pleaded that he was leading the campaign for the forthcoming bypolls in Andhra Pradesh for his party candidates.

The High Court as well as the CBI had turned down his pleas seeking exemption from appearing before the agency till June 15.

The CBI, in its charge sheet filed against Jagan and 12 others on March 31, accused Jagan and his father of hatching a conspiracy to defraud the government with Jagan influencing his father Rajeshkara Reddy in doing out certain favours to various investors, who made investments of several crores into Jagan's businesses as a quid-pro-quo arrangement.

The Raj Bhavan route, which leads to the guest house was barricaded and a lot of traffic restrictions were imposed there.