The Telangana High Court has granted bail to Gali Janardhan Reddy, former Karnataka Tourism and Infrastructure Minister and sitting MLA, in connection with the Obulapuram Mining scam.

The relief was extended to him and other accused, following their conviction by a CBI special court for illegal mining activities in Bellary Forest and for defrauding the government through under-invoicing and tax evasion amounting to nearly ₹86 crore.

Justice K. Lakshman passed the order while hearing a batch of criminal appeals filed by the convicted individuals, challenging the CBI court’s judgment dated May 6, 2025. Similar bail relief was extended to all appellants.

Reddy, Director of Obulapuram Mining Company Pvt Ltd, along with co-accused K. Mehfuz Ali Khan and Bovilla Venkata Srinivas Reddy, had approached the High Court during vacation.

They argued that they had already served more than half of their sentence as remand prisoners and were entitled to bail under Supreme Court guidelines. The defence also claimed that the prosecution had failed to establish guilt beyond reasonable doubt.

Further, it was contended that refusal to stay the conviction would adversely impact the Gangawati constituency, as the disqualification under the Representation of People Act, 1950, would prevent the Election Commission from notifying a fresh election. Additionally, it was argued that the mining company would face disqualification under the Companies Act and would be unable to continue operations unless the conviction was stayed.

While granting bail, the court directed the accused to furnish two personal bonds of ₹10 lakh each and prohibited them from traveling abroad.

In a related order, the court also granted bail to Valmiki Dasari Raj Gopal, retired Director of Mines and Geology from the erstwhile state of Andhra Pradesh, upon furnishing a personal bond of ₹1 lakh.

Counsel for the Company: P.B. Suresh, Senior Advocate
Counsel for the Directors: Nagamuthu, Senior Advocate
Counsel for the State (CBI): Srinivas Kapatia, Special Public Prosecutor