Published On: Wed, May 7th, 2025

Gali, 3 others guilty in illegal mining case, get 7-yr jail | Hyderabad News

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Hyderabad: After a trial lasting over 13 years, a special CBI court in Hyderabad Tuesday convicted mining baron and sitting Karnataka MLA Gali Janardhan Reddy and three others and sentenced them to seven years imprisonment in the Obulapuram Mining Company (OMC) illegal mining case. The court acquitted BRS MLA Sabitha Indra Reddy, who was minister of mines and geology in undivided Andhra Pradesh from 2004 to 2009, and then industries secretary B Kripanandam. Principal special judge T Raghu Ram said there was no evidence to substantiate the charges against Sabitha Reddy and Kripanandam.OMC managing director BV Srinivas Reddy, who is a relative of Janardhan Reddy, the latter’s personal assistant Mehfuz Ali Khan and ex-AP geology and mines director VD Rajagopal are the other three convicts. Rajagopal was concurrently sentenced to four years under the Prevention of Corruption Act.The court also fined mining firm OMC Rs 2 lakh and the four convicts Rs 20,000 each.Telangana high court had discharged IAS officer Y Srilaxmi, who succeeded Kripanandam, in the case in 2022. The case, which began with the arrest of Gali Janaradhan Reddy by then CBI joint director VV Lakshminarayana on Sept 5, 2011, from his Bellary residence, resulted in the CBI filing one chargesheet and three supplementary chargesheets.According to the CBI chargesheet, ex-minister Janardhan Reddy and co-convict Srinivas Reddy conspired with Rajagopal to secure a mining lease from AP to give legitimacy to illegally mined ore from Karnataka. Mehfuz floated a firm, Devi Enterprise, and routed illegally mined iron ore through OMC to various countries. Losses to the exchequer were calculated at Rs 800 crore.According to investigating officer R M Khan, the main charge against Gali and OMC was that they secured a mining lease over 68 hectares in D Hirehal mandal of Anantapur district in AP through dubious means but never used it for mining iron ore. Instead, they excavated mines and secured a huge quantity of iron ore through illegal means in Karnataka’s Bellary and showed it as being mined from their lawful mining lease areas in AP. They were found to have entered into a criminal conspiracy with mining officials to secure a huge number of transport permits to export this iron ore.Scientific studies using a terrestrial 3D laser scanner and archival satellite images showed no mining in OMC’s leasehold areas in Anantapur district.On the orders of the Supreme Court, the trial was held on a day-to-day basis. More than 3,500 documents were exhibited and 219 witnesses examined during the trial. All four convicts were in the courtroom when the judgment was pronounced.The judge called each of them and asked them if they had anything to say to reduce the quantum because they were found guilty of charges such as criminal breach of trust, cheating, criminal conspiracy, etc. which could lead to a life term.Janardhan Reddy told the judge that he hailed from a poor family and, at 21, started a finance company that employed 1,500-odd people. The ex-minister said he wished to spend the rest of his life “in service to mankind”.He informed the judge that he had already spent three years and four months in jail in the same case before being released on bail. The judge sentenced him to seven years.Srinivas Reddy spoke of his son’s marriage on May 18 and wanted the court to keep him out till then. Mehfuz Khan spoke of ailments, old parents and four children, while Rajagopal mentioned his old age, death of his wife and health issues to seek a lessor sentence. The judge awarded seven years’ jail to all of them.





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