Obulapuram mining scam accused Gali Janardhan Reddy received Rs 5,000 for each tonne of iron ore whereas the state was paid only Rs 17 per tonne as royalty alleged the CBI. The CBI alleged that the illegal mining activities of Janardhan Reddy could have cost the state Rs 800 crore and that the final amount could increase manifold after investigations are completed.
“Paying a small sum as royalty can’t be used to justify illegally mined iron ore,” the CBI alleged in its counter argument to the bail petition filed by Reddy before the first additional special judge for CBI cases at Gaganvihar. Reddy’s bail has been rejected four times earlier and this is his fifth bail application. The hearing for bail was postponed to May 11. Janardhan Reddy is currently lodged in a Bengaluru jail where he is facing another case of illegal mining in Karnataka. CBI said that the Indian bureau of mines had raised objections against the report submitted by Geo Environmental Labs hired by OMC.
Gali’s counsel Uma Maheswara Rao said, “The CBI is over enthusiastic in probing OMC, but has maintained silence in the case of Bellary Iron ore. There are no new findings by the CBI even after nine months.” The CBI also pointed out that when the CBI team reached Reddy’s residence on September 5, 2011, he made a call from his cellphone to his PA, K. Mehfuz Ali Khan regarding the CBI raid.