Hyderabad: In a significant legal development, senior IAS officer Y. Srilakshmi has received a major setback in the infamous Obulapuram Mining Company (OMC) case, as the Telangana High Court has reinstated criminal charges against her. The court overturned its own earlier ruling that had discharged her from the case, and has now clarified that Srilakshmi must face trial as one of the accused.
This decision came following a directive from the Supreme Court, which ordered a fresh review of the discharge order. After re-examining the case, the High Court concluded that Srilakshmi cannot be exempted from trial, stating that she has a direct role in the alleged irregularities and must face judicial proceedings in the CBI Special Court.
Background of the Case
Srilakshmi served as the Industries and Commerce Secretary in the undivided Andhra Pradesh government between 2007 and 2009. During her tenure, she was allegedly involved in the irregular allocation of mining leases to the Obulapuram Mining Company, owned by former Karnataka Minister Gali Janardhana Reddy.
The CBI, which registered a case in December 2009, accused her of playing a key role in manipulating procedures to benefit OMC. According to the agency, she ignored earlier mining applications, violated established norms, and helped allocate three key mining areas to OMC within the Anantapur forest reserve, bypassing legal and environmental clearances.
One of the critical allegations is that she removed the term “captive mining” from the licensing conditions, thereby opening the way for commercial exploitation of mineral resources. The CBI charges that this allowed large-scale illegal mining in ecologically sensitive zones and resulted in substantial revenue loss to the government.
Legal Journey and Arrest
On November 28, 2011, Srilakshmi was arrested by the CBI and spent two months in Chanchalguda Jail. She was later granted bail in October 2012 on health grounds. The CBI filed a chargesheet on March 30, 2012, naming her as Accused No. A-6 in the OMC case.
However, in a major relief, the Telangana High Court discharged her from the case on November 8, 2022, effectively cancelling the chargesheet filed against her. This order had temporarily halted the trial proceedings against her.
Unhappy with the High Court’s clean chit, the CBI approached the Supreme Court, challenging the discharge. The apex court found merit in CBI’s appeal and directed the Telangana High Court to re-examine the case.
Now, after a fresh review, the High Court has cancelled its earlier discharge order, stating that there is enough prima facie evidence to proceed with a full trial. The court maintained that the earlier judgment was not sustainable and that Srilakshmi’s role in the conspiracy must be legally scrutinised.
