Telangana HC stays conviction of Gali Janardhan Reddy & others in illegal mining case

By | June 12, 2025
Gali Janardhan Reddy mining case Telangana High Court stay on conviction

In a key legal turn, the Telangana High Court has stayed the conviction of Gali Janardhan Reddy, a former Karnataka minister, in the infamous Obulapuram Mining Company (OMC) illegal mining case. The court also granted conditional bail to three co-accused. This ruling halts the effects of a recent CBI court decision that had sentenced them to prison.

The High Court’s order came on June 11, 2025, offering a major lifeline to Reddy. The stay ensures that he continues as an elected MLA from Gangavathi, avoiding immediate disqualification under election laws.

Bail Conditions and Court Observations

Justice K. Lakshman delivered the order, staying the May 6 conviction. The court granted interim bail to Reddy, B.V. Srinivas Reddy, V.D. Rajagopal, and Mehfuz Ali Khan. Each accused must post a ₹10 lakh bond and provide sureties of the same amount. The court barred them from leaving India without permission.

This relief is critical for Reddy’s political career. A conviction of over two years usually disqualifies an MLA. With the conviction now on hold, the Election Commission has paused plans to hold a by-election in his constituency.

How the Case Started

The case traces back to 2009, when the Central Bureau of Investigation (CBI) filed charges against Reddy and his mining firm. Investigators accused him of running illegal iron ore operations in forest areas straddling Karnataka and Andhra Pradesh.

The Obulapuram Mining Company, under Reddy’s control, allegedly extracted massive quantities of iron ore without proper permits. The scam led to financial losses of over ₹880 crore for the government. Officials claim that the company used forged documents to mine in protected zones.

Special Court Verdict and Fallout

On May 6, 2025, a special CBI court in Hyderabad convicted Reddy and the three others. The court sentenced them to seven years of rigorous imprisonment and imposed fines. Following the verdict, Reddy faced possible disqualification from the Karnataka Assembly.

The Representation of the People Act bars elected representatives from holding office if convicted for more than two years. Had the conviction stayed in effect, Reddy would have lost his MLA seat immediately.

However, the High Court’s intervention changed the course of events. Reddy’s appeal against the conviction gave him another chance to defend himself.

Political Angle and What’s at Stake

Gali Janardhan Reddy is no stranger to controversy. Once a powerful BJP minister in Karnataka, he gained notoriety for his role in the Bellary mining belt. Known for his influence and lavish lifestyle, Reddy was a central figure in Karnataka politics during the 2000s.

In 2023, he made a comeback, winning the Gangavathi Assembly seat as an independent candidate. Though no longer an official BJP member, he still holds considerable political clout in the region.

The stay on his conviction keeps his political ambitions alive. It also delays any electoral impact in Gangavathi, where the Election Commission had started preparations for a by-poll.

Who Are the Other Accused?

The court granted similar relief to the three co-accused:

  • B.V. Srinivas Reddy, an executive with OMC.
  • V.D. Rajagopal, former Director of Mines in Andhra Pradesh.
  • Mehfuz Ali Khan, a retired IAS officer.

All three held key roles in enabling the illegal mining operations, according to the CBI. They also face charges of corruption, criminal conspiracy, and forgery.

In another linked case, Y. Srilakshmi, also a senior IAS officer, has filed a discharge petition. The High Court will hear that matter on June 19, 2025.

Reactions and Legal Insights

Legal experts note that the High Court has only stayed the conviction, not overturned it. The trial court’s findings remain under review, and a final decision will depend on the appeal’s outcome.

Activists and environmental groups have criticized the delay in justice. They argue that the state has failed to protect natural resources and punish those responsible. Many believe the mining scam caused irreversible damage to forest lands.

However, Reddy’s supporters call the stay a victory for due process. They argue that the CBI court’s ruling lacked strong evidence and relied too much on assumptions.

What Lies Ahead?

The Telangana High Court’s ruling gives temporary relief to the accused, but it doesn’t close the case. The appeal process will decide whether the conviction stands or falls. Until then, Reddy and the others remain out on bail.

For Reddy, this decision offers a path to political survival. With no disqualification in effect, he retains his MLA post and stays relevant in Karnataka politics.

The case also serves as a test for India’s ability to prosecute powerful individuals in large-scale corruption cases. The next few months will reveal whether justice will prevail in one of India’s most talked-about mining scandals.

Final Thoughts

The Telangana High Court’s stay has postponed the consequences of a significant conviction. It highlights the complex balance between legal procedure, political power, and public accountability. Gali Janardhan Reddy’s future now hangs on how the appeals process unfolds — a process that will shape both his career and India’s fight against high-level corruption.