OMC mining case: Order on Reddys' bail plea on December 28

HYDERABAD: The Special CBI Court here today posted the bail petitions of former Karnataka minister Gali Janardhana Reddy and his brother-in-law and Obulapuram Mining Company's Managing Director B V Srinivas Reddy for the order on December 28.

After the petitioners' as well as CBI's lawyers completed the arguments today, judge Nagamaruti Sarma reserved the order.

This is the fourth bail plea of Reddys since their arrest on September 5. They are presently lodged in Chanchalguda jail here.

During the arguments, senior defence counsel Umamaheshwar Rao strongly objected to CBI's claim that OMC scam had caused a loss of Rs 5,100 crore to the exchequer, saying the central agency was exaggerating the figure now as its own charge sheet reflected the loss only of Rs 884 crore.

"The CBI, after taking note of sale consideration of iron ore exported (by OMC), put the figure at Rs 884 crore in its chargesheet... how could it exaggerate now?," he asked.

CBI, which filed charge sheet against Reddys and three others on December 3, yesterday informed the court that OMC scam was worth Rs 5,100, and it adversely impacted the economy.

Janardhan Reddy, who owns OMC, is accused of entering into a criminal conspiracy with government officials to get mining leases and of illegal ore mining involving over 60 lakh tonne.