Clearing state home minister and former minings minister Sabita Indra Reddy, the CBI has established the roles played by department officials in ordering license to Obulapuram Mining Company.
The company has said in the same application that it needed area for mining iron or for the captive use of a steel plant it is planning to set up.
According to CBI, Srilakshmi, furthering a conspiracy with B V Srinivas Reddy and Gali Janardhan Reddy, had taken undue interest by continuously persisting with the then minister of mines, Sabita Indra Reddy to allot 25 hectares to OMCPL. “But the minister of mines did not accede to her request and advised Y Srilakshmi not to pursue the matter further, these overt acts show that she acted to further the conspiracy,” CBI's investigations revealed.
Late R Linga Reddy (A 5) the then ADMG, Anantapur District also abused his position as a public servant to extend pecuniary advantage and projected OMCPL as the only meritorious applicant and ensured that no one else would get the mining lease.
Accused number 3, Valmiki Dasari Raja Gopal , former Director Mines and Geology, aiding the criminal conspiracy with Gali (A2) and Srinivas Reddy (A1), verbally instructed and forced Linga Reddy, to issue permits to OMCPL without inspections and that he should not cause any hindrances to Gali or OMCPL by conducting any.
Finally, B kripanandam, the then secretary Industries and Commerce initiated a note on 17.11.2005 wherein he approved the recommendation of VD Rajagopal and recommended that OMCPL should be granted the lease.
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