Bhubaneswar, Feb. 16: Business tycoon Subash Agarwal, who was kidnapped from Bhubaneswar last night, was rescued by Andhra Pradesh police from Visakhapatnam today.

The police arrested seven persons for kidnapping Subash, who is among the state’s top businessmen. His assets are valued at over Rs 1,000 crore. However, the main accused, his business rival Srinivas Rao, who runs a construction company in Andhra Pradesh, is yet to be nabbed.

The police rescued Subash and his cousin, Shankar Agarwal, from the Anandpuram area of the city.

Subash was kidnapped around 10.30pm when he was heading back home from his firm’s guesthouse at Kolathia on the city outskirts.

Bhubaneswar deputy commissioner of police (DCP) Nitinjeet Singh said: “From primary investigation, it appears that Subash and his cousin were kidnapped by one of his business rivals — Andhra Pradesh-based SSGB Construction Company’s managing director Srinivas Rao. Both the victim and the accused are in the construction business. Andhra police have arrested seven persons and further investigation will reveal more details.”

Police sources said while Subash was returning home in his maroon Mercedes, two four-wheelers — a Scorpio and a Bolero — followed their car. When they were hardly 50 metres from the guesthouse, the Scorpio overtook the Mercedes while the Bolero rammed into it from behind. Consequently, Subash’s driver stopped the car and stepped out to investigate the extent of the damage.

Right then, the goons in the two SUVs came out and assaulted the three of them. Later, they pushed Subash and Shankar into the Mercedes and one of them drove it away. They also took the driver along with them in the Scorpio.

The kidnappers took the NH-5 and headed to Andhra Pradesh. After travelling 10km, they shifted Subash and Shankar to the Bolero fearing that the presence of Mercedes could invite trouble. The Mercedes was abandoned at an isolated place near the Gangapada tollgate on the city outskirts. Some more goons joined them in a Honda Civic there.

When Subash did not reach home, his family members lodged a complaint at Khandagiri police station.

Police said the kidnappers gave the three drugs. While Subash and Shankar gulped down the pills and became unconscious, the driver managed to deceive the kidnappers and did not take it.

When the kidnappers were approaching Khallikote in Ganjam district, the vehicle slowed down because the local police had started checking all the vehicles after being alerted by their Bhubaneswar counterparts. The driver began shouting for help when the vehicle came to a standstill. The police immediately rescued the driver and arrested two of the kidnappers.

Police said the prime accused, Srinivas Rao, who was also in the car, managed to escape while the police were busy rescuing the driver. Seeing the police in action, the other two vehicles fled. Khalikote police chased them and nabbed two others and seized the Honda Civic. They also seized a licensed pistol from the car, which was in the name of Rao.

“The police got clues about the movement of the vehicle carrying Subash and Shankar after questioning those arrested,” said DCP Singh.

“Getting our tip off, they started checking all the vehicles. The Andhra Pradesh police caught the Bolero and rescued the Agarwal brothers from Anandpuram,” he said.

However, the police are yet to arrest two more persons, including the mastermind. A team of the Cuttack-Bhubaneswar police rushed to Andhra to bring the abductors on remand.

Sources said a dispute was on between Subash’s ARSS and Rao’s SSGB company regarding bill payment. Officials said Rao used to own properties worth around Rs 600 crore three years ago, but he incurred heavy losses thereafter.

Police sources revealed that the SSGB group paid for the goons to stay and observe the movements of Subash for five days before carrying out the kidnapping.

Converted to a limited company in 2000, ARSS has grown to become one of the leading construction companies in the state. It has been awarded contracts worth more than Rs 1,600 crore in the state including construction of the Paradip-Cuttack road.