CBI begins questioning Janardhana Reddy and brother in law on illegal mining after bail denied

HYDERABAD: After a special court granted custody of former Karnataka minister Gali Janardhana Reddy and his brother-in-law BV Srinivas Reddy till September 19, CBI has started questioning the duo on illegal mining on the Andhra-Karnataka border, transporting iron ore unlawfully and laying of roads in forest areas.

Since the CBI feels that the business interests of the Reddy brothers and Kadapa MP YS Jaganmohan Reddy were intertwined, it would also be looking for evidence to substantiate the allegations.

CBI wanted custody of the former BJP minister for 15 days but the court agreed only a six-day custody. Rejecting their bail application, the judge directed CBI to produce the duo before the court on Monday. However, the lawyers defending Reddy, who is also the chairman of Obulapuram Mining Company, and his brother-in-law, who is the mining company's managing director, moved the Andhra Pradesh High Court seeking relief against the lower court's order. The CBI had arrested the duo on September 5.

CBI officers carried out searches at the residences of the duo and seized more than Rs 3 crore cash, over 30 kg of gold and several documents. The special court in Hyderabad adjourned hearing on their bail petition twice before the judgement was delivered on Tuesday as arguments remained largely inconclusive.

"CBI wants to find out the role of public servants in granting permits for mining and transportation of iron ore and laying of roads in forest areas," Additional S-G Vivek K Tankha, who argued for the investigation body, said. CBI is also planning to conduct polygraph tests on the two accused after obtaining their consent.

In his arguments, Vivek Tankha labelled the illegal mining case as a huge scam spread over Andhra Pradesh and Karnataka, and said it would not have been perpetrated without the collusion of public servants. The Reddys roped in senior lawyers Uday Lalit and CV Nagesh to argue on their behalf who vehemently argued that CBI's case against their clients was politically motivated, mala fide and vindictive. Lalit is the special public prosecutor in the 2G scam case being heard in a special court in Delhi.