On Tuesday, May 6, 2025, a special Central Bureau of Investigation (CBI) court in Hyderabad delivered a significant verdict in the long-standing Obulapuram Mining Company (OMC) illegal mining case, convicting former Karnataka minister Gali Janardhan Reddy and three others. The court sentenced them to seven years in prison and imposed a fine of ₹10,000 each. Additionally, the OMC was fined ₹1 lakh.
The case has been under investigation for nearly 14 years, stemming from allegations of illegal mining activities that reportedly caused a loss of ₹884 crore to the exchequer. The CBI had filed the initial charge sheet against Reddy and the others on December 3, 2011, which accused them of tampering with mining lease boundary markings and conducting unauthorized mining in the Bellary Reserve Forest area, located along the Karnataka-Andhra Pradesh border.
Judge T Raghu Ram, the Principal Special Judge for CBI cases, presided over the trial and ultimately acquitted former minister Sabitha Indra Reddy and former bureaucrat B Krupanandam of all charges. However, the court convicted several key figures in the case, including Reddy's brother-in-law and Managing Director of OMC, Srinivas Reddy (designated as A1), VD Rajagopal (A3), the then Assistant Director of Mines and Geology, and Mehafuz Ali Khan (A7), Reddy's personal assistant.
The CBI's investigation into the OMC began when former Andhra Pradesh Chief Minister K. Rosaiah filed a complaint on December 7, 2009, alleging illegal mining activities in the Anantapur and Bellary districts. Following this, the Andhra Pradesh government issued a government order prohibiting mining operations by OMC. The CBI was tasked with investigating the claims, which led to the extensive probe involving 219 witnesses and the examination of over 3,400 documents.
During the trial, the prosecution presented evidence that the illegal mining activities took place between 2007 and 2009, resulting in significant financial losses to the state. The CBI's case against Reddy and the other accused has been characterized as one of the most high-profile corruption cases in recent Indian history.
As the verdict was announced, the CBI took Reddy and the other convicted individuals into custody. This case has drawn considerable attention over the years, not only for its implications regarding illegal mining but also for its connections to political figures and bureaucrats.
Reddy, who has been a prominent figure in Karnataka politics, was previously arrested in connection with this case in 2011, and his political career has been marred by various allegations of corruption and illegal activities.
In the wake of the verdict, reactions have poured in from various quarters. Supporters of Reddy have expressed disappointment, while critics have hailed the judgment as a step towards accountability in the mining sector. The case serves as a stark reminder of the challenges faced by authorities in combating illegal mining and corruption.
The CBI's rigorous investigation and the court's ruling may set a precedent for similar cases in the future, emphasizing the need for transparency and adherence to legal protocols in mining operations.
As the dust settles on this landmark ruling, the focus now shifts to the broader implications for the mining industry in India and the ongoing efforts to curb illegal practices that have plagued the sector for years.
