Mining scam: G Janardhana Reddy's judicial custody ends

Hyderabad: Former Karnataka minister Gali Janardhana Reddy is likely to be produced in court on Friday as his judicial custody ends. Reddy has been in jail in connection with an illegal mining case since September 2011. Seven people have been accused of trying to bribe a judge to grant him bail.

Associated Mining Corporation (AMC) and Deccan Mining Syndicate (DMC) owned by Reddy and his wife Aruna Lakshmi have been facing probe over charges of illegal mining. Additional Civil and Sessions Court judge BM Angadi had remanded Reddy to custody after CBI moved an application in this regard. Former minister and Congress leader V Muniyappa and few other officials are the other accused in the case.

According to the chargesheet, the total amount earned by Obulapuram Mining Company (OMCPL) through local sales and exports worked out to Rs 4,310 crore during the 2007-10 period. The chargesheet further said that the Reddys entered into a criminal conspiracy with public servants including late Linga Reddy, Rajagopal, suspended IAS officer and then secretary (Industries and Commerce department) Y Srilakshmi; and ensured that the mining leases for area of 68.5 hectares and 39.5 hectare were granted to OMC.

Two companies owned by Reddy and his wife Aruna Lakshmi have been facing probe over charges of illegal mining.

Gali and others encroached on mining areas of different companies located around lease area of OMCPL and carried out illegal mining, the CBI alleges, adding that OMCPL also laid roads illegally, linking to AGK mines (owned by OMCPL) for illegal transportation of iron ore.

(With additional information from PTI)

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