IAS officer turns witness,leads mining trail to YSR Reddy

The late Y S Rajasekhara Reddy and minister exerted pressure to favour OMC,she alleges.

IAS officer Y Srilakshmi,who was arrested in the Gali Janardhana Reddy illegal mining case on Monday,has agreed to become a witness in the case.

Accused of favouring Galis Obulapuram Mining Company (OMC) by overlooking other bidders for giving mining licences in Anantapuram district,Srilakshmi is learnt to have told the CBI that former minister for mines and geology P Sabita Indra Reddy,who is Home Minister now,pressured her to sign and even speed up the files for allotting 68 hectares and later 32 hectares land to OMC for mining.

Srilakshmi,who was remanded in three days CBI custody on Tuesday,is also learnt to have told the investigating agency that she felt that there was pressure on Sabita Indra Reddy from late Y S Rajasekhara Reddy and some of his family members to favour OMC.

Based on information given by witnesses and files seized by the CBI,officials have already interviewed Home Minister Reddy about her role in the illegal mining case. Officials said that the files that the minister submitted to the CBI first indicated that it was Srilakshmi who signed on all the Government Orders giving licences to OMC. However,Srilakshmi is learnt to have confessed that she did so under tremendous pressure from her higher ups including former chief secretary M G V K Bhanu,retired,and currently chairman of Tea Board,Kolkata.

Bhanu,a 1985 batch IAS officer,is son-in-law of former Congress MP P V Rangaiah Naidu and was allegedly instrumental in advising late YSR in processing the mining leases issued to Gali Janardhana Reddy. Bhanu was Special Secretary to YSR.

Based on Srilakshmis statement,the CBI may also arrest a joint director and field investigation officers of the AP Mineral Development Corporation for colluding and allowing OMC to do mining illegally.

Bhanu was summoned by CBI to appear to give a statement on November 20 and is learnt to have told officials that he was just taking orders from above,and passed instructions down to his juniors.