Gali Janardhana Reddy, a former Karnataka minister and influential mining businessman, has been sentenced to seven years in prison by a Central Bureau of Investigation (CBI) court in Hyderabad. The conviction pertains to the Obulapuram Mining Company (OMC) illegal mining case, marking a significant development in a case that has spanned over a decade.
The Rise of a Mining Magnate
Born on January 11, 1967, in Ballari, Karnataka, Reddy ventured into business at a young age. He established Ennoble India Savings & Investment Company Limited in 1989, which expanded rapidly across South India. In 2001, he took over Obulapuram Mining Company (OMC), which held iron ore mining leases in Andhra Pradesh. His political career saw him serve as the Minister of Tourism and Infrastructure Development in Karnataka from 2008 to 2011.
The Obulapuram Mining Scam
The CBI’s investigation revealed that OMC, under Reddy’s leadership, engaged in extensive illegal mining activities between 2007 and 2010. The company allegedly earned over Rs. 4,300 crore through unauthorized extraction and export of iron ore. To facilitate this, OMC entered into a Memorandum of Understanding with GLA Trading International, a Singapore-based shell company, to under-invoice exports and evade taxes in India.
Further investigations uncovered that OMC mined beyond its leased areas, encroaching into forest lands and causing environmental degradation. The Lokayukta report of July 2011 detailed the “zero risk system” employed by Reddy, wherein unauthorized mining was protected through collusion with government officials.
Lavish Lifestyle Amidst Allegations
Reddy’s opulent lifestyle drew significant attention. In 2011, a raid on his residence uncovered an indoor swimming pool, massage parlour, home theatre, and a 15 kg gold and diamond-studded throne bearing his initials. Reports also indicated that his wardrobe included shirts woven with real gold threads, each costing approximately $1,300, and he wore a gemstone-studded belt valued at around $17,500.
In 2016, Reddy reportedly spent about $75 million (approximately Rs. 625 crore) on his daughter Brahmani’s wedding, further highlighting his extravagant expenditures.
Legal Proceedings and Conviction
The CBI arrested Reddy in September 2011, and after years of legal proceedings, the court delivered its verdict on May 6, 2025. Alongside Reddy, three others were convicted: his brother-in-law and OMC Managing Director Srinivas Reddy, former Assistant Director of Mines Department V.D. Rajagopal, and Reddy’s private assistant Mehfouz Ali Khan. Each convict received a seven-year prison sentence and a fine of Rs. 10,000. Additionally, the court imposed a Rs. 1 lakh fine on OMC.
The court acquitted former minister Sabita Indra Reddy and former government official B.K. Kripanandam due to insufficient evidence.
Political Repercussions
Despite the legal challenges, Reddy remained active in politics. In December 2022, he launched the Kalyana Rajya Pragathi Paksha and won the Gangavathi assembly seat in May 2023. However, he merged his party with the Bharatiya Janata Party (BJP) in March 2024, rejoining the party amidst ongoing legal proceedings.
