Mining barons Janardhana Reddy, Srinivas Reddy remanded to judicial custody

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A special court in Hyderabad on Monday sent former Karnataka minister and mining baron Gali Janardhana Reddy and Obulapuram Mining Company (OMC) director B. Srinivas Reddy to judicial custody for 14 days in an illegal mining case.

The two, who were arrested by the Central Bureau of Investigation (CBI) early on Monday at Bellary in Karnataka, were produced before a CBI court at the Nampally Criminal Court complex.

After hearing arguments for one-and-half hours, the judge sent the accused to judicial remand till September 19. They are likely to be shifted to Chanchalguda Central Jail.

The court adjourned to September 7 the hearing on the CBI's petition seeking the custody of the accused for 15 days.

Earlier, the CBI shifted the accused from Bellary to Hyderabad amid tight security.

CBI Joint Director V.V. Lakshminarayana, who led a team of officers who arrested the accused in Bellary, told reporters that they were held on the basis of evidence gathered by the agency.

"We will interrogate and collect more evidence," he said, when asked if the CBI would arrest more accused.

The arrests were made in connection with a case registered by the CBI against OMC in 2009 for illegal mining in the forest area of Andhra Pradesh bordering Karnataka.

The powerful Janardhana Reddy, Srinivas Reddy and others were booked under penal provisions for criminal conspiracy, cheating and under various sections of mining and forests acts.

Gold and a helicopter

The CBI team today seized Rs.3 crore in cash and more than 30 kgs of gold from the residence of Janardhana Reddy in Bellary.

Also found were several incriminating documents during searches at his residence. Unconfirmed reports are even claiming the raid team seized Reddy's helicopter.

The arrest is the latest blow to south India's only BJP government. The party cleaved into feuding factions after the BJP forced Yeddyurappa to resign following the Lokayukta report. The three Reddy brothers, accused of running a parallel government called the 'Republic of Bellary', were dropped from the ministry of new chief minister D.V. Sadananda Gowda.

Jagan is furious

Across the border, another Reddy who knows the brothers well, was infuriated when journalists asked him for reactions.

"This is not ethical, it is beneath, under the belt," said an angry Jagan Reddy, Congress rival and son of former Congress chief minister Y.S. Reddy.

"How is Janardhan Reddy connected to me? You ask him (Janardhan), you ask the BJP."