Making the first arrest in Andhra Pradesh,the Central Bureau of Investigation (CBI) arrested former managing director and former vice-chairman of AP Mineral Development Corporation V D Rajagopal late on Saturday night in the illegal mining case against Gali Janardhan Reddy and his Obulapuram Mining Company (OMC).
Rajagopal is the third person to be arrested in the OMC case,after former Karnataka minister Gali Janardhan Reddy,who owns OMC,and the firms managing director B Srinivasa Reddy. The two were arrested on September 5.
Rajagopal was produced at the CBI Court magistrates residence on Sunday who directed the agency to produce him before the special court for CBI cases on Monday.
Rajagopal was arrested under various sections of the IPC and Prevention of Corruption Act,said CBI Joint Director (Hyderabad Zone) V V Lakshmi Narayana. Rajagopal,also former director,Mines and Geology,was managing director of Andhra Pradesh Mineral Development Corporation from 2004 to 09,during the tenure of Y S Rajasekhara Reddy.
Rajagopal had given a statement to the CBI that OMC was given preferential treatment in allocation of iron ore and leases by the YSR government.
Former Industries Secretary Y Srilakshmi,an IAS officer,is also named as an accused in the OMC case.
YSR government was favourable to OMC…it was given top priority as it was going to set up big industries (Brahmani Industries steel plant in Kadapa district), he had said and asserted that he was not the sanctioning authority.