In a significant development, the Telangana High Court on Wednesday granted bail to Karnataka MLA and former minister Gali Janardhan Reddy and stayed his conviction in the long-running Obulapuram illegal mining case.
The court’s order effectively prevents his disqualification from the Karnataka Legislative Assembly, allowing him to continue as an elected representative.
Conviction Put on Hold Pending Appeal
The High Court also extended similar relief to three co-accused—B.V. Srinivasa Reddy, V.D. Rajagopal, and Ali Khan—along with the Obulapuram Mining Company (OMC), which was also convicted. All were granted bail and had their convictions stayed while the appeal process is underway.
The court found sufficient grounds to pause the trial court’s ruling, which had sentenced each accused to seven years in prison. The stay on the conviction is expected to remain in effect until the appeals are fully heard and decided.
Strict Bail Conditions Imposed
As part of the interim relief, the court ordered all the accused to execute a personal bond of ₹10 lakh each, backed by two sureties of the same amount. Additionally, the accused must surrender their passports to prevent any possibility of evasion.
Senior advocate S. Nagamuthu, along with Mayank Jain and Vimal Varma Vasireddy, represented Reddy in court. Speaking to the media, one of the lawyers confirmed that the stay on conviction ensures that Reddy’s position as an MLA remains unaffected for now.
Background
The case dates back to 2009, when the Central Bureau of Investigation registered a case against Obulapuram Mining Company and its top officials for allegedly conducting illegal mining operations beyond their approved lease boundaries in the then-undivided Andhra Pradesh.
After nearly 16 years of legal proceedings, a CBI special court in Hyderabad delivered its verdict on May 6, 2025, convicting Reddy and the other accused. The judgment marked the end of a lengthy investigation and trial, but the accused immediately approached the High Court challenging the verdict.
What Lies Ahead
The High Court will take up the appeals later this year. Until then, the accused will remain on bail, and the trial court’s verdict will remain suspended. The case continues to be one of the most prominent examples of alleged political and corporate collusion in the mining sector.
This interim relief is a temporary reprieve for Reddy and others, but the final outcome will depend on how the appeals play out in the coming months.
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