Mining Scam - Janardhana Reddy Finally Granted Bail

Hyderabad/Bangalore, May 11 (IANS): A CBI court Friday granted bail to former Karnataka minister Gali Janardhana Reddy in an illegal mining case in Andhra Pradesh.

Janardhan Reddy, however, will not be released immediately as he is currently lodged in a Bangalore jail, facing a similar case in Karnataka.

The court, while granting bail to Janardhana Reddy, directed him to deposit two sureties and a personal bond of Rs.5 lakh. The court also asked him not to leave the country.

The trial court and the state high court had earlier rejected six bail petitions of Reddy, whose Obulapuram Mining Co (OMC) was accused of involvement in illegal mining in Anantapur district of Andhra Pradesh.

The court rejected the bail petition of another accused and Indian Administrative Service (IAS) officer Y. Srilakshmi.

She, as the industries secretary, had allegedly played a key role in granting the mining lease to OMC in 2005.

The CBI had booked a case against OMC in 2009 for alleged illegal mining in Anantapur district.

Janardhan Reddy and his brother-in-law, OMC managing director B.V. Srinivasa Reddy, were arrested from Bellary in Karnataka Sep 5 last year.

Besides Srilakshmi and Srinivasa Reddy, former director of mines V.D. Rajagopal is also lodged in Chanchalguda Central Jail here.

The investigating agency Dec 3 filed a charge sheet against Janardhan Reddy and others. A supplementary charge sheet was filed against Srilakshmi March 30.

Janardhan Reddy was shifted March 1 to Bangalore where he is facing illegal mining charges against one of his other firms, Associated Mining Co (AMC).