A CBI court in Hyderabad today found mining baron and former Karnataka minister Gali Janardhan Reddy guilty in the Obulapuram mining case involving illegal mining of iron ore, along with three others, while acquitting another former minister, Sabitha Indra Reddy and former IAS officer Kripanandam. Those convicted, including Gali Janardhan Reddy, who rejoined the BJP as an MLA, were sentenced to seven years in prison, and a fine of Rs 10,000 was imposed on each of them. The CBI court’s verdict would lead to his immediate disqualification from the Karnataka Assembly.

The Obulapuram Mining Company (OMC) was involved in illegal mining operations in the Anantapur district of the unified state of Andhra Pradesh, and the CBI started investigating the case in 2009. The YS Rajasekhar Reddy-led AP government had also granted an illegal mining lease to OMC. The AP government allocated 10,760 acres of land to set up a captive steel plant, worth Rs 20,000 crore in 2007. The accused included mining baron and former Karnataka minister Gali Janardhan Reddy, managing director of OMC, BV Srinivasa Reddy, Gali’s personal assistant Mefaz Ali Khan, the former director of mines, VD Rajagopal, retired IAS officer Kripanandam, former AP minister of mines, Sabitha Indra Reddy, former IAS officer Y Srilakshmi and former assistant director of mines, R Linga Reddy.

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However, Linga Reddy, who allegedly played a key role in allocating the leases to OMC, died while the case was on trial. IAS officer Y Srilakhshmi, who was in jail for several months and consequently suspended from service before rejoining, was given a clean chit by the High Court in 2022.

The CBI found that Gali Janardhan Reddy’s OMC was favoured in granting iron ore leases in Obulapuram while ignoring 23 other applicants. A government order issued almost immediately allowed OMC to sell the iron ore, and the mining company was involved in illegal mining even in forest areas of Karnataka, flouting state borders, causing a loss of Rs 884 crore to the exchequer.

The first charge sheet was filed in 2011, and the verdict came after nearly 14 years. The trial was monitored by the Supreme Court. Galli Janardhan Reddy was banned by the apex court from entering Ballari in Karnataka and Anantapur and Kurnool districts in AP for 13 years, over apprehension that he may tamper with evidence or influence witnesses.