The bail petition of mining baron Gali Janardhan Reddy has been rejected by the special CBI court in Hyderabad.
He will be sent to police custody from Tuesday till September 19, to facilitate interrogation by the investigating agency.
It may be recalled that Mr. Reddy is already in judicial custody till that date.
Judge B. Naga Maruthi Sarma directed the Chanchalguda Jail authorities to hand over Mr. Janardhana Reddy and his brotherin-law Srinivas Reddy to the CBI immediately for further questioning in the illegal mining case.
The CBI originally sought custody of the two for 15 days, saying their custodial interrogation was crucial as they had personal knowledge of illegal mining of iron ore in mining area across Karnataka and Andhra Pradesh.
Besides, they could provide information on the conspiracy with government officials allegedly involved in the racket.
The CBI had registered the case against Mr. Reddy’s Obulapuram Mining Company (OMC) on December 7, 2009 at the request of Andhra Pradesh government in the wake of allegations of illegal mining and irregularities in allotment of mining leases to OMC in Obulapuram and Malpanagudi villages of Anantapur district of the state.
Mr. Janardhan Reddy and OMC Managing Director Srinivas Reddy were arrested by a CBI team on September 5 at Bellary in Karnataka after the agency conducting searches at their premises in connection with alleged illegal mining.
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