The Supreme Court has dealt a setback to senior IAS officer Y. Srilakshmi by refusing to discharge her from cases linked to the allocation of mining leases to the Obulapuram Mining Company and alleged disproportionate assets connected to the Y.S. Jagan Mohan Reddy cases. The apex court upheld the earlier judgment of the Telangana High Court which had dismissed her discharge petition.
Srilakshmi had argued that the mining leases were granted in accordance with established rules and procedures during her tenure as Secretary of the Mines Department. However, the Central Bureau of Investigation opposed her plea and maintained that serious violations had taken place under her watch. According to the CBI, she played a key role in the irregular allocation of mining leases to Obulapuram Mining Company, allegedly facilitating illegal benefits by removing the concept of captive mining from official considerations.
The agency also informed the court that there were witness statements suggesting that bribes were demanded in connection with the grant of mining leases. It further alleged that Srilakshmi accumulated substantial assets during her time in office and that close relatives also acquired significant wealth during the same period. The CBI argued that these aspects could only be properly examined during a full trial and not at the stage of discharge.
After considering the arguments, the Supreme Court dismissed her petition and allowed the trial to proceed. Justice Sundaresan observed that an earlier interim stay had been granted under the impression that it was a separate matter, and clarified that the court was now correcting that error. The bench directed the trial court to continue proceedings without delay.
In a related development, the CBI has previously stated that there is sufficient material to prosecute Srilakshmi in connection with the grant of leases to Penna Cements as part of the alleged disproportionate assets cases. The agency has cited irregularities in land allocations in Anantapur and Kurnool districts, renewal of leases in Tandur in Ranga Reddy district, and subsidy approvals linked to hotel construction in Hyderabad.
During the hearing, the CBI’s special counsel argued that Srilakshmi had earlier challenged cognizance orders and later withdrawn certain petitions after arguments were completed. Filing fresh petitions on the same grounds was not legally sustainable, the agency contended. It also clarified that any objections to prosecution sanction orders issued by the Centre must be raised before the appropriate lower court.
With the Supreme Court’s refusal to discharge her, the cases against the former IAS officer will now proceed to trial. The verdict marks a significant development in long pending investigations related to mining allocations and alleged abuse of official position.
