Published Jun 11, 2025 | 5:22 PM ⚊ Updated Jun 11, 2025 | 5:22 PM
Mining baron Gali Janardhana Reddy. (Creative Commons)
Synopsis: The Telangana High Court has suspended the seven-year sentence of Gangavathi MLA Gali Janardhan Reddy in the Obulapuram Mining case and granted him bail. Convicted for illegal mining that caused a ₹884 crore loss, Reddy had been disqualified from the Karnataka Assembly. The suspension could reverse his disqualification, with the final appeal hearing scheduled for 11 August 2025.
The Telangana High Court on Wednesday, 11 June, suspended the seven-year imprisonment sentence of former Karnataka minister and incumbent Gangavathi MLA Gali Janardhan Reddy in the high-profile Obulapuram Mining Company (OMC) illegal mining case.
The court, presided over by Justice K Lakshman, also granted bail to Reddy and three other convicts —his brother-in-law and OMC Managing Director BV Srinivas Reddy, former Director of Mines and Geology VD Rajagopal, and Reddy’s personal assistant Mehfuz Ali Khan.
Each was required to furnish a personal bond of ₹10 lakh with two sureties of the same amount and was directed not to leave the country without prior court permission.
The decision comes after Reddy and the other accused appealed the 6 May verdict of a CBI Special Court in Hyderabad, which convicted them of illegal mining activities in the Bellary Reserve Forest area straddling the Karnataka-Andhra Pradesh border.
The court found that OMC, owned by Reddy and his family, tampered with mining lease boundaries, causing a reported ₹884 crore loss to the exchequer between 2007 and 2009.
The conviction led to Reddy’s immediate disqualification from the Karnataka Legislative Assembly under Section 8 of the Representation of the People Act, 1951, and Article 191(1)(e) of the Indian Constitution, effective from 6 May 2025. The disqualification, announced by Assembly Secretary MK Vishalakshi, was set to continue for six years post-release unless stayed by a competent court.
Reddy’s counsel S Nagamuthu, argued for bail and suspension of the conviction, citing that Reddy had already served nearly half of the seven-year term as a remand prisoner following his 2011 arrest.
He stressed the urgency of the need for suspension, as the Karnataka Assembly had declared Reddy’s Gangavathi seat vacant on 8 May, and that the Election Commission of India was likely to issue an election notification soon. The suspension of the conviction was critical to potentially reversing his disqualification.
The OMC case, investigated by the CBI in 2009 is related to allegations that OMC, under Reddy’s control, was engaged in illegal iron ore mining in Anantapur district, Andhra Pradesh, and Ballari, Karnataka. The CBI’s chargesheet accused Reddy and others of criminal conspiracy, cheating, forgery, and violations under the Prevention of Corruption Act.
Reddy, a former minister in BS Yediyurappa’s government and a mining baron with significant influence in Ballari, has faced multiple legal challenges since 2011.
His political comeback in 2023, winning the Gangavathi seat, was notable after years of restrictions, including a 15-year ban from entering Ballari, lifted by the Supreme Court in October 2024.
The final hearing of his appeal against the CBI court’s order, will come up on 11 August 2025, before the high court.
(Edited by Sumavarsha)
