Sabita caught in Gali Scam - TeluguPeople.com News

Hyderabad: The Home Minister P Sabita Reddy and senior bureaucrats in the state Mines department are most likely to be facing trouble, following the CBI grilling of mining baron and Karnataka former minister Gali Janardhan Reddy.

The CBI has begun interrogation of Gali Janardhan Reddy and his brother-in-law who is the MD of Obulapuram Mining Company (OMC) BV Srinivas Reddy since Sept 13, after the special court allowed custodial interrogation and remanded them to CBI custody till Sept 19th.

Sources in the CBI said that the first two days interrogation of Janardhan Reddy revealed that he was greatly benefitted by Sabita Indra Reddy, the then mines minister and another senior IAS officer, besides the then Mines and Geology Director. All of them, under the directions of the then CM YS Rajasekhar Reddy have played a key role in granting mining license to Janardhan Reddy at Obulapuram.

The key factor is that, late CM YSR had signed a cabinet file clearing the allotment to OMC, on the ground that it would be helpful to Brahmani Steels, to be set up by Janardhan Reddy in Kadapa-Anantapur Districts. So, the iron ore should be treated as a captive mine of the steel factory and it can merit a special favour.

But, when the file passed the cabinet approval stage, both Sabita and the Mining Secretary signed the final allotment orders, without the mention of 'captive mine' provision and delinked it from Brahmani Steels. So, Janardhan Reddy's OMC is like any other iron ore mine and the currently accused former minister and mining baron was under no obligation to use the iron ore excavated from OMC to his own steel factory.

He can export it anywhere. Both the government and the courts were surprised as to how Janadhan Reddy can export the ore produced from a mine that was meant to supply raw material to a steel factory.

When questioned, Janardhan Reddy told the CBI sleuths that he had been given a license without any conditions that the ore should not be exported. So, now the ball will be in the court of Sabita and the then mining Secretary and the retired DMG Rajgopal.

Further, they will have to explain what prompted them to issue a license, by using a different wording approved by the cabinet noting signed by the chief minister. Now, the CBI will approach the then mining minister soon.

The sources say that the change in the wording had happened due to intervention from KVP Ramachandra Rao - 'the all powerful adviser' to the late YSR.

Much to the ignorance of the officials, the experts in the legal department at the behest of the late CM and his advisor resorted to changing the language of a government order at a later stage, by such an action, the late CM as well as his soulmate adviser has achieved two things ' one to save the late CM's skin from the irregularity and two to involve the then Mining Minister also in the scam.

Now it will have to be seen, if Sabita and the then Mining Secretary would expose the dubious role of that adviser in the scam. Before that Sabitha who is presently holding the Jails portfolio must ensure good comforts at the Jails in the state.