In a major setback to mining baron and former Karnataka minister Gali Janardhan Reddy, a special CBI court in Hyderabad on Tuesday sentenced him to seven years in prison for his role in the infamous Obulapuram Mining Company (OMC) illegal mining scam. The court also imposed a fine of ₹10,000 on Reddy and three co-accused, while the company was fined ₹1 lakh.
Reddy, once a powerful figure in Karnataka’s political and mining circles, was taken into custody by the CBI immediately after the verdict. He was listed as Accused No. 2 in the case, which has been under trial for nearly 14 years. The conviction marks a dramatic fall for the former minister, who was known for his influence in the resource-rich Ballari region and close ties to the ruling class during the late 2000s.
The court found Reddy and others guilty of manipulating mining lease boundaries and conducting illegal mining operations in the Bellary Reserve Forest area on the Karnataka-Andhra Pradesh border between 2007 and 2009. According to the prosecution, the illegal activity caused a staggering ₹884 crore loss to the public exchequer.
Who are the other convicts?
{{/usCountry}}The court found Reddy and others guilty of manipulating mining lease boundaries and conducting illegal mining operations in the Bellary Reserve Forest area on the Karnataka-Andhra Pradesh border between 2007 and 2009. According to the prosecution, the illegal activity caused a staggering ₹884 crore loss to the public exchequer.
Who are the other convicts?
{{/usCountry}}Also convicted were Reddy’s brother-in-law and OMC Managing Director B Srinivas Reddy (A1), former Mines and Geology official VD Rajagopal (A3), and Reddy’s personal assistant Mehafuz Ali Khan (A7). The judgment was delivered by T Raghu Ram, Principal Special Judge for CBI cases.
In contrast, the court acquitted former Andhra minister Sabitha Indra Reddy and retired bureaucrat B Krupanandam, citing lack of evidence. Senior IAS officer Y Srilakshmi, initially named in the case, had earlier been discharged by the Telangana High Court in 2022.
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Reddy’s name first surfaced in the case when the CBI filed its initial charge sheet in December 2011, followed by three supplementary chargesheets over the years. The mining scandal, which rocked both Andhra Pradesh and Karnataka, was seen as symbolic of the unchecked rise of politically connected businessmen in India’s resource sectors.
CBI Public Prosecutor Inderjeet Santoshi and Assistant Public Prosecutor Vishnu Majji represented the investigating agency, which argued that the case was not just about mining violations but a calculated abuse of power and public trust.