Mining scam: CBI opposes bail pleas of Reddys

CBI opposed the bail pleas of former K`taka minister Gali Janardhana Reddy and his brother-in-law BV Srinivas Reddy.

Hyderabad: CBI on Thursday opposed the bail pleas
of former Karnataka minister Gali Janardhana Reddy and his
brother-in-law B V Srinivas Reddy, arrested in connection with
alleged illegal mining activities, at a special court here
contending that the duo carried out "illegal" mining by
creating forged documents and through conspiracy.

The agency, probing "illegal" mining and irregularities
in allotment of mining leases to Obulapuram Mining Company
(OMC), had arrested Janardhana Reddy and OMC Managing Director
Srinivas Reddy on September 5 from Bellary in Karnataka and
brought them to Hyderabad the same day.

The Reddys, who are under judicial custody till October 3
and lodged at Chanchalguda Central Prison had sought bail
again, after the special court for CBI cases here rejected
their pleas and sent them to CBI custody for six-days from
September 13.

The CBI, in its counter filed today, stated that "the
second bail petition (by the accused) has been filed without
any change in circumstances. Investigation is in full swing
and prima facie evidence is against the accused."

"Illegal mining has been mainly carried out by the
accused by creating forged documents with conspiracy.
Investigation is speedily going on to trace other associates
of the accused who are conspirators and have gone
underground," the CBI alleged.

Further investigation has to be carried out on seizure of
Rs 4.95 crore cash which was seized by Guntakal police in
Anantapur district on September 15, after intercepting a
lorry, the agency said adding the lorry-driver (Venkatramana
Reddy) allegedly confessed that he was given the cash by the
brother of Srinivas Reddy to deliver it in Hyderabad.

"The accused are highly influential persons and may
threaten witnessess, tamper with evidence. Hence, their bail
petitions may be dismissed," the CBI submitted.

The CBI had earlier alleged that mining and extraction of
29.30 lakh tonnes of iron-ore was done in several areas (in
Karnataka) other than the leased area of 68.5 hectares held by
OMC, owned by Janardhan Reddy.

The CBI registered the case against OMC on December 7,
2009 at the request of Andhra Pradesh government in the wake
of allegations of illegal mining and irregularities in
allotment of mining leases to OMC in Obulapuram and
Malpanagudi villages of Anantapur district of the state.

The court has posted the matter for further hearing on
September 29.

Hearing on the bail plea was not held today following the
boycott of court proceedings by lawyers in support of
separate Telangana statehood demand.


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