Telangana High Court Grants Bail To Former Karnataka Tourism Minister Gali Janardhan Reddy In Obulapuram Mining Scam Case

Reddy, the Director of Obulapuram Mining Company Pvt Ltd Bellary, along with other accused, had been convicted for 7 years by the CBI court for illegal mining in the Bellary Forest and on accusations of defrauding the government by under-invoicing and tax evasion, suspected to be close to 86 crores.

The order was passed by Justice K. Lakshman, who was hearing a group of Criminal Appeals filed by the accused convicted by the CBI court on 6^th May 2025. All accused were granted similar reliefs.

The petitioners had approached the High Court during the vacation and argued mainly that they had been serving prison time as remanded prisoners and had served more than half the jail time thus were entitled to be released on bail as per orders of the Supreme Court.

Additionally, it was contended that the prosecution could not prove the illegal mining beyond reasonable doubt and that if the conviction was not stayed, it would lead to irreversible hardship to the residents of the Gangawati Constituency as the Election Commission would not notify fresh election for the constituency due to the vacancy caused by the disqualification under the Representation of People Act, 1950.

It was also argued that the company would suffer disqualification under the Companies Act and would not be in a position to continue its business unless the conviction is stayed.

While passing the order, Justice Lakshman directed the accused (Gali, K. Mehfuz Ali Khan and Bovilla Ventakata Srinivas Reddy) to furnish two personal bonds worth 10 lakhs each and restricted their foreign travel.

Valmiki Dasari Raj Gopal, retired Director of Mines and Geology of the erstwhile State of AP, was granted bail upon furnishing personal bonds of INR 1 lakh.

Counsel for Company : . P.B.Suresh, Sr. Advocate

Counsel for directors: Nagamuthu, Sr. Advocate

Counsel for State: Srinivas Kapatia SPCL PP FOR CBI 

Click here to read order