SC dismisses plea for discharge by IAS officer in Obulapuram mining company case

The Supreme Court on Tuesday rejected a plea of an IAS officer seeking discharge in the multi-crore Obulapuram Mining Company case, clearing the decks for her trial.

A bench of Justices M M Sundresh and N Kotiswar Singh upheld the decision of the Telangana High Court which had refused to discharge senior IAS officer Y Srilakshmi.

The court had on August 29, 2025 stayed the trial against her and issued notice to the CBI on her plea.

Srilakshmi, who served as Industries & Commerce secretary in Andhra Pradesh between 2006 and 2009, was named in a supplementary charge sheet filed by the CBI in the alleged scam.

She moved the trial court seeking discharge, contending there were only suspicions against her and no concrete allegations warranting the framing of charges.

The plea, however, was dismissed in 2022.

She subsequently moved the Telangana High Court, which allowed her criminal revision and discharged her on November 8, 2022.

The CBI challenged it before the Supreme Court, which on May 7, 2023, set aside the high court order and remitted the matter for a reasoned judgment.

After reconsideration, the high court dismissed her revision petition on July 25 and revived the trial against her.

The CBI claimed Srilakshmi abused her position as a public servant by allegedly favouring Obulapuram Mining Company Private Limited, owned by businessman and former Karnataka minister Gali Janardhan Reddy.

She allegedly omitted the crucial condition of captive mining in the final lease and issued two government notifications in the company's favour, violating provisions of the Mines and Minerals Act, 1957, and the Mineral Concession Rules, 1960.

The CBI further alleged that her actions facilitated other accused persons in cheating the government and caused huge losses to the public exchequer. She faces charges under Sections 120B and 409 of IPC, aside from Prevention of Corruption Act, 1988 provisions.