Hyderabad, May 6 A CBI court on Tuesday sentenced mining baron and former Karnataka Minister Gali Janardhan Reddy and three others to seven years imprisonment in the Obulapuram Mining Company (OMC) case.
The CBI Principal Special Judge’s Court convicted Janardhan Reddy, former Director of Mines and Geology V.D. Rajagopal, OMC Managing Director B.V. Srinivasa Reddy, and Janardhan Reddy’s personal assistant Mehfuz Ali in the 15-year-old case, related to illegal iron ore mining in the Anantapur district of Andhra Pradesh.
However, the court acquitted the then Mines Minister Sabita Indra Reddy and former IAS officer Kripanandam, citing a lack of evidence to prove their involvement.
The verdict brought relief to Sabita Indra Reddy, now a BRS leader who was among the accused in the CBI’s supplementary charge sheet.
The court also imposed a fine of Rs 10,000 each on the four convicts and Rs 2 lakh on OMC.
The investigation was initiated by the CBI in 2009, following a directive from the Central government at the request of the then Andhra Pradesh government. Janardhan Reddy, once an important leader of the BJP who played a key role in the party coming to power in Karnataka for the first time in 2008, was arrested by the CBI on September 5, 2011, in the case. He was later released on bail.
The CBI filed its first charge sheet in 2011, followed by supplementary charge sheets naming nine accused, including IAS officer Y. Srilakshmi, who was discharged in 2022.
Another accused, R. Linga Reddy, then Assistant Director of the Mines Department, died during the trial.
Charges were framed under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act.
The trial, monitored by the Supreme Court, concluded arguments last month after the court set a May deadline for completion.
The case, involving illegal mining operations in the Anantapur district has been under trial for 13 years, with over 3,400 documents examined and 219 witnesses interrogated.
The accused were charged under IPC Sections 120B (criminal conspiracy), 420 (cheating), 409 (criminal breach of trust), 468 & 471 (forgery) and Prevention of Corruption Act Sections 13(2) & 13(1)(d).
The CBI found that during Y.S. Rajasekhara Reddy's tenure as Chief Minister in the united Andhra Pradesh, authorities favoured Janardhan Reddy's OMC in granting iron ore mining leases for 68.5 hectares and 39.5 hectares in Obulapuram.
The CBI charge sheet states that Janardhan Reddy & Co. illegally mined iron ore beyond their lease areas, including in Karnataka's forest lands, causing a loss of Rs 884.13 crore to the exchequer.
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