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Rediff.com  » News » Mining scam: CBI opposes bail pleas of Reddys

Mining scam: CBI opposes bail pleas of Reddys

September 22, 2011 19:36 IST

Central Bureau of Investigation 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 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, 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 on Thursday, 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 witnesses, 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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