A CBI court has convicted former Karnataka Minister Gali Janardhan Reddy and three others in the Obulapuram illegal mining case, sentencing them to seven years’ imprisonment.
Reddy had been a Member of the Karnataka Legislative Assembly from the Gangawati Assembly constituency since 13 May 2023 being associated with the Kalyana Rajya Pragathi Paksha. He rejoined Bharatiya Janata Party on 25 March 2024.
Who is Gali Janardhan Reddy?
Gali Janardhan Reddy is a former Karnataka minister and influential mining baron known for his dominant role in the iron ore industry, particularly in the Bellary region.
Reddy’s career has been marred by multiple allegations and convictions related to illegal mining, tax evasion, and corruption.
Gali Janardhan Reddy was arrested in 2011 following a Lokayukta report that indicted him for illegal mining activities causing massive losses to the state exchequer. In 2015, Reddy was released on bail but there were strict conditions attached, including not being able to enter certain areas such as Ballari.
‘Crazy rich life’ of Gali Janardhan Reddy
Gali Janardhan Reddy, a mining tycoon had made headlines after splashing a reported US$75 million ( ₹625,593,750) on his daughter Brahmani’s wedding to Rajeev Reddy.
An indoor swimming pool, massage parlour, home theatre and bomb shelter were among the luxury amenities discovered when police raided Reddy’s home in 2011.
Hindustan Times had reported that the businessman’s private helicopter, named Rukmini, and several cars were also seized in the raid.
What is the Obulapuram illegal mining case?
The Obulapuram Mining Scam revolves around illegal iron ore mining and massive tax evasion involving the Obulapuram Mining Company (OMC), owned by Karnataka’s influential Reddy brothers, including former minister Gali Janardhan Reddy, and their close associate, ex-state health minister B Sriramulu.
Investigations revealed that OMC entered into a dubious Memorandum of Understanding (MoU) with a Singapore-based shell company, GLA Trading International (GLATI), to underreport sales and evade taxes in India.
GLATI, with offices in tax havens like Singapore, Dubai, and the British Virgin Islands, was partly directed by Gali Janardhan Reddy himself.
The scheme involved convoluted transactions designed to suppress income and avoid paying rightful royalties, causing significant financial losses to the government.
The Central Bureau of Investigation (CBI) launched a probe in 2009, following directives from the central and Andhra Pradesh governments, after income tax raids uncovered under-invoicing and money laundering worth crores of rupees.
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