Telangana HC Grants Bail to Janardhan Reddy, Stays Conviction in Mining Case
In a significant development with legal and political ramifications, the Telangana High Court on June 11 granted interim bail and stayed the conviction of Karnataka MLA and former minister Gali Janardhan Reddy in the Obulapuram illegal mining case. The decision, delivered by Justice K. Lakshman, has also reinstated his eligibility as a Member of the Karnataka Legislative Assembly from Gangavathi.
The court extended similar relief to co-convicts BV Srinivas Reddy, VD Rajagopal, and K Mehfuz Ali Khan, who were all previously sentenced by a special CBI court on May 6 to seven years imprisonment on charges related to illegal iron ore mining, criminal conspiracy, and breach of trust.
Illegal Mining Case Background
The case revolves around large-scale illegal iron ore extraction carried out by the Obulapuram Mining Company (OMC) across forest land and beyond leased boundaries in Karnataka and Andhra Pradesh. The estimated financial loss to the government was pegged at ₹884 crore. The four convicts were found guilty of criminal conspiracy, cheating, and violating multiple mining and corruption laws. Reddy, who was at the helm of OMC operations, had consistently denied wrongdoing.
High Court Intervention and Bail Conditions
Following the conviction, Janardhan Reddy’s Gangavathi seat was declared vacant on May 8, and preparations for a by-election had begun. However, the High Court’s stay on the conviction means Reddy now retains his MLA status. The interim bail was granted against a personal bond of ₹10 lakh with two sureties of the same amount.
The court also issued strict conditions: none of the accused may leave the country without prior permission, and they are required to fully cooperate with further legal proceedings. The ₹2 lakh corporate fine imposed on OMC was also stayed.
Relief for Co-Accused
BV Srinivas Reddy, Managing Director of OMC, received bail on the same terms as Janardhan Reddy. VD Rajagopal, former Director of Mines in Andhra Pradesh, was granted bail against a ₹1 lakh bond and two sureties. K Mehfuz Ali Khan, a personal aide to Reddy, also secured bail under similar conditions.
Legal and Political Implications
This ruling not only alters the immediate political future of Janardhan Reddy but also underscores the judiciary’s stance on granting appellate relief in white-collar criminal convictions pending full appeal hearings. The court maintained that interim suspension of a conviction should not be denied where irreversible consequences such as disqualification from public office are involved, especially when the appeal is still to be decided.
The case now moves into the next phase as the High Court prepares to hear the appeals on merit. The final verdict could carry major implications for political accountability in the mining sector and public perception of the justice system’s approach to high-profile corruption cases.
