The Telangana High Court has granted bail to former Karnataka Minister Gali Janardhan Reddy in the Obulapuram mining scam case. Reddy, who served as Tourism and Infrastructure Minister and is Director of Obulapuram Mining Company Pvt. Ltd., was earlier convicted by the CBI court for illegal mining and tax evasion in Bellary forests.
The CBI court had sentenced Reddy and other accused to seven years for causing losses of nearly ₹86 crores through under-invoicing and illegal operations.
The bail was granted by Justice K. Lakshman on 6th May 2025, during a vacation hearing of criminal appeals filed by the convicts.
“Considering they have served more than half of their sentence, bail is granted,” the Court observed.
The petitioners argued that they were in jail for a long time and that their continued conviction could harm the Gangawati constituency, which cannot hold elections due to their disqualification under the Representation of People Act, 1950.
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It was also stated that the company may face disqualification under the Companies Act, affecting its operations if the conviction isn't stayed.
Justice Lakshman ordered all three key accused—Reddy, K. Mehfuz Ali Khan, and Bovilla Venkata Srinivas Reddy—to submit two personal bonds of ₹10 lakh each and barred them from foreign travel.
“Foreign travel is restricted. Bail granted on submission of sureties,” the Court said.
Valmiki Dasari Raj Gopal, former Director of Mines, was also granted bail on a ₹1 lakh bond.
Counsels included P.B. Suresh for the company, Nagamuthu for the directors, and Srinivas Kapatia for the CBI.
