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In a setback to IAS officer Y. Srilakshmi, the Telangana High Court on Friday dismissed her petition for discharge in the Obulapuram Mining Company (OMC) case, involving charges of illegal mining.
The High Court, which had reserved its orders on the petition filed by the Indian Administrative Service (IAS) officer, pronounced the same on Friday.
The top bureaucrat, currently serving in the government of Andhra Pradesh, had filed revision petition challenging the CBI special court order of October 2022, dismissing a petition filed by her seeking a direction to discharge her as accused in the case.
She is accused number six in the 2009 case in which the CBI special court in May 2025, awarded seven-year imprisonment to four persons, including BJP MLA from Karnataka Gali Janardan Reddy.
While pronouncing its order, the CBI special court had not passed the verdict on the alleged role of Srilakshmi in the case, as she had approached the High Court challenging the order of the special court.
The High Court had allowed her revision petition, setting aside the special court order. The Central Bureau of Investigation (CBI) had moved the Supreme Court, stating that the order was passed without considering their contention.
In May 2025, the Supreme Court remanded back the revision petition filed by the IAS officer to the High Court, setting a three-month time frame to dispose of the petition.
During the hearing last week, the CBI had argued that Srilakshmi, as the then secretary of the Industries department, favoured OMC.
The central agency alleged that Srilakshmi, in collusion with then Director of Mines VD Rajagopal, demanded large bribes from other applicants for mining licences while extending undue benefits to OMC and its promoters, Gali Janardhan Reddy and BV Srinivas Reddy. It argued that her decisions allegedly enabled financial gains for OMC, bringing her actions under the Prevention of Corruption Act.
The case, registered by the CBI 16 years ago, related to illegal mining by OMC in Anantapur district of undivided Andhra Pradesh.
The CBI special court in Hyderabad on May 6 awarded seven-year imprisonment to Janardhan Reddy, his relative B.V. Srinivas Reddy, managing director, OMC, D. Rajagopal, then Director of the Mining Department, and Janardan Reddy's assistant, Ali Khan.
Sabitha Indra Reddy, then Home Minister of Andhra Pradesh and retired Indian Administrative Service (IAS) officer B. Krupanandam were acquitted of the charges framed against them due to lack of evidence.
The Telangana High Court last month suspended the sentence and granted conditional bail to the convicts.