HYDERABAD: Y Srilakshmi on Monday became the first IAS officer to be arrested since the CBI took up investigation of the mining scam case about a year ago. The agency has already arrested V D Rajagopal who was director of mines and geology and in charge of the AP Mines and Mineral Development Corporation (APMMDC) when the mining leases were sanctioned to Janardhan Reddy's Obulapuram Mining Corporation (OMC). Janardhan Reddy and his brotherinlaw Srinivasa Reddy are already in judicial custody.
Srilakshmi, presently family welfare commissioner, was a secretary in the Industries Department (mines) at the time when the mining leases were signed to OMC. The main charge against her is that she bypassed rules governing the issue of mining leases, allegedly at the behest of the then chief minister late Y S Rajasekahra Reddy. She is allegedly to have set aside the applications of other mining firms to favour OMC.In the government order (GO) alloting 68.5 hectares of orerich land to OMC, Srilakshmi is alleged to have "deliberately" omitted the word "captive mining" which helped the company to obtain permits for export of 29 lakh tonnes of iron ore. The file noting leading up to this act had clearly stipulated that the leased mine had to be captive to a steel company that was to come up in Kadapa district. When the GO was finally issued, the words 'captive' mining were missing, sources said.
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