Hyderabad: In a significant development in the Obulapuram Mining Company (OMC) illegal mining case, the Telangana High Court on Friday dismissed the discharge petition of IAS officer Y. Srilakshmi (1988 batch, AP cadre), paving the way for her to face trial in the high-profile corruption case dating back to 2009.
Srilakshmi, who is Accused No. 6 in the case, had sought to be discharged from the proceedings, challenging a 2022 CBI Special Court order that refused to exonerate her. Her plea was earlier upheld by the High Court but later sent back for reconsideration after an appeal by the Central Bureau of Investigation (CBI) in the Supreme Court.
Background: OMC Case and Previous Convictions
The OMC illegal mining case centers around allegations that Gali Janardhan Reddy, a BJP MLA from Karnataka, and his associates engaged in illegal iron ore mining in Andhra Pradesh, causing massive losses to the state exchequer.
On May 6, 2025, the CBI special court convicted:
- Gali Janardhan Reddy (Karnataka BJP MLA)
- BV Srinivas Reddy (OMC MD and Reddy’s relative)
- D. Rajagopal (then Director of Mines)
- Ali Khan (Reddy’s aide)
All four were sentenced to seven years’ imprisonment under various provisions of the Prevention of Corruption Act and IPC. However, Y. Srilakshmi’s case was kept pending due to her challenge in the High Court.
Srilakshmi’s Role Under Scrutiny
At the time of the alleged offences, Y. Srilakshmi served as Secretary of the Industries Department. The CBI alleges that she:
- Favoured OMC and its promoters in granting mining licenses
- Denied permissions or demanded bribes from competing applicants
- Acted in collusion with then Director of Mines D. Rajagopal
The agency contends that her actions facilitated large-scale financial gains for the company and are punishable under the Prevention of Corruption Act.
Legal Journey: Petition, Appeal, and Verdict
- October 2022: CBI Special Court rejects her discharge plea
- Post-2022: Srilakshmi appeals in the High Court, which initially quashes the special court’s order
- May 2025: Supreme Court intervenes, rules that CBI was not heard, and sends the case back to the High Court
- July 25, 2025: Telangana High Court dismisses Srilakshmi’s discharge petition, reinstating proceedings
Other Accused and Acquittals
While four individuals were convicted in May, some high-profile names were acquitted earlier due to lack of evidence:
- Sabita Indra Reddy, then Home Minister of Andhra Pradesh
- B. Kripanandam, retired IAS officer
All four convicted individuals later received conditional bail from the Telangana High Court pending appeal.
What’s Next for Srilakshmi?
With the discharge petition now dismissed, Srilakshmi is likely to face trial in the special CBI court. The ruling adds fresh momentum to the decade-and-a-half-long case and is seen as a legal setback for the senior IAS officer, who has maintained her innocence throughout.
