CBI court sends Reddys to 14-day judicial custody

Hyderabad: Former Karnataka tourism minister G Janardhana Reddy and his brother-in-law Srinivasa Reddy have been sent to 14 days in judicial custody. The Reddys were produced before a Special Central Bureau of Investigation (CBI) court in Hyderabad on Monday afternoon. The Hyderabad court will decide on the CBI's request for 15-day custody of the duo on September 7.

The Reddys were arrested by the CBI on Monday morning on charges of criminal conspiracy and cheating for being involved in mining activities in Andhra Pradesh. They have also been charged under the Mines and Mineral Development Regulation Act as well as the Indian Forest Act.

"We will request the magistrate for 15 days of police custody. CBI can't work on allegations so we are gathering evidence. The priority is to gather evidence in the coming days," said VV Laxminarayana, DIG, CBI's Anti-Corruption Bureau, Hyderabad.

Srinivasa Reddy is the managing director of Obulapuram Mining Corporation which is owned by the former minister. Janardhana Reddy and his brothers Karunakara and Somasekhar Reddy own the Obalapuram Mining Corporation.

The CBI recovered 30 kg gold and Rs 1.5 crore cash from Janardhana Reddy's residence and Rs 3 crore cash from Srinivasa Reddy after raids were conducted at their residences on Monday.

The arrests have been made under a 2009 FIR under sections of criminal conspiracy and cheating and also prevention of corruption act. An FIR was registered in 2009 after the Supreme Court appointed Central Empowered Committee wrote a letter against the Obulapuram Mining Company.

There are allegations of irregularities in the mining activities of OMC which is owned by the brothers - G Karunakara Reddy, G Janardhana Reddy, G Somashekara Reddy.

The Reddy brothers have been indicted in the Lokayukta report on illegal mining in Karnataka.

The Lokayukta report accused them of far more serious crimes than just accepting a bribe. The report says they have actually smuggled out iron ore from Karnataka and the Rs 215 crore money trail has led to accounts in the British Virgin Islands and the Isle of Man.