After a 13-Year Trial, Gali Janardhan Reddy and Three Others Found Guilty in Obulapuram Mining Case
In a landmark judgment that underscores the long arm of the law, a special CBI court in Hyderabad has convicted former Karnataka minister Gali Janardhan Reddy and three others in the notorious Obulapuram Mining Company (OMC) illegal mining case. The court sentenced the accused to seven years of rigorous imprisonment and imposed fines, bringing to a close a 13-year legal battle that exposed the dark underbelly of India’s mining industry. The verdict, delivered on May 6, 2025, also saw the acquittal of two other accused, including former mines minister Sabitha Indra Reddy, highlighting the complexities of proving guilt in high-profile corruption cases.
Table: OMC Illegal Mining Case Verdict
| Fact | Details |
|---|---|
| Case Name | Obulapuram Mining Company (OMC) Illegal Mining Case |
| Verdict Date | May 6, 2025 |
| Court | Special CBI Court, Nampally, Hyderabad |
| Trial Duration | 13 years (2009–2025) |
| Total Loss to State Exchequer | Rs 884.13 crore |
| Total Accused | 7 (4 convicted, 2 acquitted, 1 deceased) |
| Convicted Individuals | Gali Janardhan Reddy, B.V. Srinivasa Reddy, V.D. Rajagopal, Mehfuz Ali Khan |
| Acquitted Individuals | Sabitha Indra Reddy (ex-mines minister), B. Krupanandam (retired IAS officer) |
| Deceased During Trial | R. Linga Reddy |
| Case Quashed Against | Y. Srilakshmi (by Telangana HC in 2022) |
| Major Charges | Criminal conspiracy, cheating, breach of trust, forgery, and violations under the Prevention of Corruption Act |
| Evidence Considered | 3,400+ documents, 219 witnesses |
| Key Prosecution Team | Inderjeet Santoshi (Public Prosecutor), Vishnu Majji (Assistant PP) |
Background of the Case
The OMC illegal mining case dates back to 2009 when the Central Bureau of Investigation (CBI) began probing allegations of illegal iron ore mining in the Anantapur district of Andhra Pradesh. The case centered around the Obulapuram Mining Company, owned by Gali Janardhan Reddy and his brother-in-law B.V. Srinivasa Reddy. The CBI alleged that OMC, with the help of certain government officials, engaged in mining activities beyond its leased areas, including protected forest lands in Karnataka, causing a staggering loss of Rs 884.13 crore to the state exchequer.
The investigation revealed that during the tenure of then Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy, OMC was granted mining leases under questionable circumstances. Despite there being no provisions for captive mining, OMC was allowed to mine iron ore, which was then sold freely, bypassing established regulations. The case gained national attention due to its scale and the involvement of high-profile political figures. The CBI’s investigation involved examining over 3,400 documents and 219 witnesses, making it one of the most extensive trials in recent memory.
The Verdict
On May 6, 2025, after a marathon trial that lasted over 13 years, the special CBI court in Nampally, Hyderabad, delivered its verdict. The court found Gali Janardhan Reddy, B.V. Srinivasa Reddy, V.D. Rajagopal (former Director of Mines, Andhra Pradesh), and Mehfuz Ali Khan (Janardhan Reddy’s personal assistant) guilty of various charges, including criminal conspiracy, cheating, criminal breach of trust, and forgery, as well as violations under the Prevention of Corruption Act.
| Convicted Individual | Role | Sentence | Fine |
|---|---|---|---|
| Gali Janardhan Reddy | Former Karnataka Minister | 7 years imprisonment | Rs 10,000 |
| B.V. Srinivasa Reddy | OMC Managing Director | 7 years imprisonment | Rs 10,000 |
| V.D. Rajagopal | Former Director of Mines, AP | 7 years + 4 years (PC Act) | Rs 10,000 |
| Mehfuz Ali Khan | Personal Assistant to Reddy | 7 years imprisonment | Rs 10,000 |
| Obulapuram Mining Company (OMC) | Company | – | Rs 1 lakh |
Each of the convicted individuals was sentenced to seven years of rigorous imprisonment and fined Rs 10,000. Additionally, V.D. Rajagopal was sentenced to an extra four years under the Prevention of Corruption Act, making his total sentence 11 years. The court also imposed a fine of Rs 1 lakh on OMC.
Meanwhile, the court acquitted Sabitha Indra Reddy, the former mines minister and current BRS MLA, and retired IAS officer B. Krupanandam, citing insufficient evidence against them. Another accused, R. Linga Reddy, had passed away during the trial, and the case against IAS officer Y. Srilakshmi was quashed by the Telangana High Court in 2022.
Legal Proceedings
The legal battle began in 2009 when the CBI registered a case against OMC and its associates following complaints of illegal mining activities. The investigation was thorough, with the CBI filing its first charge sheet in 2011, followed by supplementary charge sheets as more evidence came to light. Over the years, the case saw numerous twists and turns, with some accused being discharged and others facing prolonged legal battles. The Supreme Court’s intervention ensured that the trial remained on track, setting deadlines for its completion.
The trial itself was a complex affair, involving the scrutiny of thousands of documents and testimonies from hundreds of witnesses. The court had to navigate through a web of allegations, counter-allegations, and legal technicalities to arrive at its verdict. Despite numerous delays due to discharge petitions and appeals in higher courts, the judiciary’s persistence ensured that justice was served after more than a decade.
Wider Implications
| Aspect | Impact |
|---|---|
| Political | Major setback for Gali Janardhan Reddy’s political career |
| Judicial | Reinforces judiciary’s role in long-drawn corruption cases |
| Environmental | Illegal mining involved forest land encroachment |
| Regulatory | Likely to trigger stricter oversight of mining operations nationwide |
Reactions
Following the verdict, Sabitha Indra Reddy expressed her gratitude towards the judiciary for her acquittal. She stated that she had faced numerous humiliations and political attacks over the past 12 years but remained steadfast in her belief that the cases against her were part of a larger political conspiracy (India Today). On the other hand, Gali Janardhan Reddy’s legal team indicated that they would challenge the verdict in the Telangana High Court, with plans to file an appeal as early as possible.
The CBI, which had been relentless in its pursuit of justice, took immediate custody of the convicted individuals following the judgment. The agency’s public prosecutor, Inderjeet Santoshi, and assistant public prosecutor Vishnu Majji played key roles in arguing the case.
Significance of the Verdict
The conviction of Gali Janardhan Reddy and his associates marks a significant milestone in India’s fight against corruption and illegal mining. It sends a strong message that no one is above the law, regardless of their political clout or influence. The case also highlights the need for stricter regulations and oversight in the mining sector to prevent such large-scale illegal activities in the future.
For Gali Janardhan Reddy, once a powerful figure in Karnataka politics, this conviction represents a fall from grace. It remains to be seen how this will impact his political career and whether he will be able to stage a comeback. The verdict also underscores the environmental impact of illegal mining, as activities like those carried out by OMC often lead to deforestation and other ecological damages.
Impact on the Mining Industry
The OMC case has significant implications for the mining industry in India. It highlights the need for greater transparency and accountability in the allocation of mining leases and the monitoring of mining activities. The case also underscores the importance of environmental conservation, as illegal mining often leads to deforestation and other ecological damages.
In the wake of this verdict, there is likely to be increased scrutiny on mining operations across the country, with regulators and law enforcement agencies stepping up their efforts to curb illegal activities. This could lead to a cleaner and more sustainable mining sector in the long run. The judgment also serves as a deterrent to those who might consider engaging in similar illegal practices, emphasizing that justice, though delayed, will eventually prevail (Deccan Chronicle).
You Learn
The OMC illegal mining case verdict is a testament to the perseverance of the legal system in pursuing justice, even in the most complex and high-profile cases. While the convicted individuals have the option to appeal, the judgment stands as a reminder of the consequences of corruption and illegality. As the legal proceedings continue, the focus will now shift to ensuring that the penalties are enforced and that similar incidents are prevented in the future.
(India CSR)
