The Supreme Court on Tuesday dismissed the plea of senior IAS officer Y. Srilakshmi seeking discharge in the multi-crore Obulapuram Mining Company (OMC) case, thereby clearing the way for the trial against her to continue.
A Bench of Justices M. M. Sundresh and N. K. Singh upheld the Telangana High Court’s decision which had refused to discharge her and had revived the criminal proceedings.
Srilakshmi, who served as Secretary, Industries and Commerce, Government of Andhra Pradesh between 2006 and 2009, was named in a supplementary charge sheet filed by the CBI in the alleged illegal mining scam involving OMC, owned by former Karnataka minister Gali Janardhan Reddy.
She had moved the trial court seeking discharge on the ground that there were only suspicions against her and no material to frame charges. The trial court rejected her plea in 2022.
The Telangana High Court initially allowed her criminal revision petition and discharged her on November 8, 2022. The CBI challenged that order before the Supreme Court.
On May 7, 2023, the apex court set aside the High Court’s order and remitted the matter for a fresh, reasoned decision. Upon reconsideration, the High Court on July 25 dismissed her revision petition and restored the trial, which led to the present challenge before the Supreme Court.
The top court had earlier, on August 29 last year, stayed the trial and issued notice to the CBI on her plea. With the present dismissal, that protection stands vacated.
According to the CBI, Srilakshmi abused her official position by allegedly favouring OMC while processing mining lease matters. It is alleged that she:
- Omitted the crucial condition of captive mining in the final lease
- Issued two government notifications in favour of the company
- Acted in violation of the Mines and Minerals (Development and Regulation) Act, 1957 and the Mineral Concession Rules, 1960
The agency contends that her actions facilitated other accused persons in cheating the government and caused substantial loss to the public exchequer.
She has been charged under Sections 120B (criminal conspiracy) and 409 (criminal breach of trust by public servant) of the IPC, along with provisions of the Prevention of Corruption Act, 1988.
Gali Janardhan Reddy, the principal accused in the case, has already been convicted, and his appeal is currently pending.
With the Supreme Court declining to interfere, the trial court will now proceed against Srilakshmi in accordance with law.
