Gali Janardhan Reddy, Three Others Given 7 yrs Imprisonment in Obulapuram Illegal Mining Case
The trial, which spanned over 13 years, involved the examination of 3,400 documents and 219 witnesses, with the CBI alleging that OMC, under Reddy's leadership, illegally mined iron ore beyond lease areas, including in Karnataka’s forest lands, resulting in a loss of Rs 884.13 crore to the state.
Hyderabad: After over 14 years, a special CBI court here on Tuesday sentenced Karnataka former minister and ‘mining baron’ Gali Janardhan Reddy, his brother-in-law B.V. Srinivasa Reddy and five to seven years of rigorous imprisonment (RI) in the ₹884 crore Obulapuram Mining Company scam, which involved illegal mining.
The others convicted were former director of mines of undivided AP V.D. Rajagopal and company partner K. Mehafus Ali Khan. One accused, Rao Linga Reddy, died during the trial, while the case against IAS officer Y. Srilakshmi was quashed by the Telangana High Court in 2022.
BRS MLA and former mines of undivided AP minister Sabitha Indra Reddy and retired IAS officer B. Krupanandam were acquitted due to lack of evidence.
Special judge Dr T. Raghuram imposed a fine of ₹20,000 each on Srinivasa Reddy, Janardhan Reddy and ₹22,000 on Rajagopal, while the company was asked to pay ₹2 lakh. They were found guilty of criminal conspiracy and cheating, criminal breach of trust and under the Prevention of Corruption Act.
The case, which began in 2009, stated that OMC, owned by Janardhan Reddy and Srinivasa Reddy, engaged in illegal iron ore mining activities in the Obulapuram region of Anantapur district, Andhra Pradesh, during the tenure of the Dr Y.S. Rajasekhar Reddy's government. The CBI started the investigation following directives from the central and Andhra Pradesh governments, after income-tax raids exposed money-laundering involving crores of rupees.
During the investigation, it was revealed that the company extracted iron ore beyond its leased areas, causing a loss of approximately ₹884 crore to the state exchequer. Over the course of the trial, 219 witnesses were examined and 3,337 documents were reviewed.
Janardhan Reddy requested the judge that he was a former minister and had spent more than three years in jail and asked the court to reduce his sentence. Similarly, Srinivas Reddy appealed for leniency on the grounds of his age and his record of social service. The judge remained firm on the sentence and turned down their appeals.
Though Sabitha Indra Reddy was not arrested during the investigation, unlike other accused, her discharge petition was earlier rejected by the court, which had observed that she played a major role in the case. In the final verdict, the court stated that both Sabitha Indra Reddy and Krupanandam had no proven role in the scam and acquitted them as there was no sufficient evidence against them.
Speaking to the media after her acquittal, Sabitha Indra Reddy said she was hurt by being included in the case though she hadn't committed any wrongdoing. “I walked into court with tears 12 years ago, but always believed the judiciary would deliver justice,” she said. She expressed gratitude to her constituency people for continuing to trust and support her, even when she was targeted politically and accused of corruption.
After the court verdict, the convicts immediately taken into judicial custody. They will be remanded and are being shifted to Chanchalguda Prison. All convicted persons have the option to appeal the verdict in the High Court, which they are likely to do as early as Wednesday to get relief.
