High Court rejects bail of mining scam accused

The Andhra Pradesh High Court on Monday cancelled the bail order for former Managing Director of APMDC, V D Rajagopal, issued by a special CBI court.

Rajagopal was taken into custody for his alleged involvement in the illegal mining scam involving the Obulapuram Mining Company (OMC) of Gali Janardhan Reddy.

The High Court on December 16 stayed the special court’s order. The CBI investigation is still underway and the accused, if out on bail, may influence the witnesses, the court had contested.

Justice N R L Rao cancelled the bail order responding to a petition filed by the CBI, challenging the special court’s verdict.

Rajagopal allegedly played a key role in granting the mining leases to OMC. Now, the government has stalled all mining activities and transport of iron ore.

The special court granted Rajagopal bail on December 15, but backtracked on its decision within three hours and stayed the order till December 19, after the CBI filed a petition.

The very next day, the CBI had moved the HC, challenging the bail order.

The OMC, Anthar Gangamma Mining Company, YM Mahabaleswarappa and Sons Mining Company and Bellary Iron Ore Private Limited were mining iron ore in about 500 acres in the D Herehall mandal bordering Karnataka. Of the six mines, four were owned by former Karnataka minister Gali Janardhan Reddy.

Meanwhile, former Indian Administrative Services officer Y Srilakshmi on Monday filed a counter to the CBI petition in the HC. Srilakshmi was released on bail on December 2, four days after the CBI arrested her on the charge of approving mining leases in violation of rules. She had allegedly removed the word “captive” in the government order.

The High Court will take up the CBI petition, challenging the special court's order on Wednesday.

The CBI special court, which has rejected three bail petitions of Janardhana Reddy and Srinivasa Reddy, has reserved its orders till Wednesday.