Sasikala was in prison since February 2017 along with Ilavarasi and late Jayalalithaa's foster son V N Sudhakaran in connection with the Rs 66 crore disproportionate assets case.
Dharma Reddy in collusion with Tahsildar Nagaraju claimed rights over 24 acres of land although he did not possess the land, the ACB officials had maintained.
CBI has registered a case against the then minister of the Karnataka government and others on the allegations of acquisition of disproportionate assets.