Karnataka Minister Gali Janardhana Reddy to remain in jail

Hyderabad (PTI) - A Special CBI Court today dismissed the bail pleas of former Karnataka Minister Gali Janardhana Reddy and his brother-in-law B.V. Srinivas Reddy, arrested in connection with alleged illegal mining activities.

Judge B. Naga Maruthi Sarma also dismissed the agency’s petition which sought custody of both the accused for nine more days.

Mr. Janardhana and Mr. Srinivas are in judicial remand till October 3 and lodged at the Chanchalguda Central Prison here.

The CBI, probing illegal mining and irregularities in allotment of leases to Obulapuram Mining Company (OMC), had arrested Mr. Janardhana and Mr. Srinivas, who is Managing Director of the company, on September 5 from Bellary in Karnataka.

Earlier, seeking further custody of the Reddys, the prosecution submitted that during the six-day custodial interrogation of the accused (from September 13), both of them did not cooperate with the CBI, which posed several questions related to the illegal mining activities.

The agency also contended that it wanted to probe details of foreign ‘benami’ companies where Mr. Janardhana (a director of OMC) made and received investments by exporting iron ore and where the Reddys kept the proceeds from the illegal mining.

The CBI argued that the Reddys had exclusive knowledge of facts of the case and only they can provide information about who they conspired with in carrying out the illegal mining and whom they “bribed” to get permits for transfer of the illegally excavated iron ore.

Opposing the CBI plea, the defence counsels argued the Criminal Procedure Code (CrPC) did not permit police custody beyond the first 15 days of the arrest of an accused.