The Central Bureau of Investigation (CBI) on Sunday arrested VD Rajagopal, former director of the state mining department, for granting mining leases out of the way to Obulapuram Mining Company (OMC), owned by former Karnataka BJP minister Gali Janardhan Reddy.
Rajagopal, who was being quizzed by the CBI since Friday, had to spend Saturday night at the CBI office here and was produced before a magistrate this afternoon. He will again be produced before a magistrate in the CBI-designated court on Monday for custody. He is likely to be booked under various sections for cheating and criminal conspiracy.
Rajagopal was questioned several times by the CBI in the last two months regarding his role in granting leases and licences to OMC and other mining companies in violation of rules. He was director, mines, from 2005 to 2010.
His had granted limestone mines to Penna Cement, which had allegedly made quid pro quo investments in YSR Congress chief YS Jaganmohan Reddy’s media house. Rajagopal had also granted limestone mine leases to Bharati Cement, in which Jagan and other investors had made investments. Later the company was sold to French conglomerate Vicat for a high premium.
The role of Rajagopal was exposed after the CBI quizzed Srilakshmi, IAS, who was mining secretary during 2007 when the OMC mining leases for 68.95 hectare were renewed and the government order (GO) 151 was issued on June 18, 2007.
Earlier in October 2011, the CBI had raided the house of Rajagopal in Hyderabad and seized valuable documents with regard to disproportionate wealth amassed by him during his tenure in office.
He is the third accused to be arrested in the case registered by the CBI against OMC in 2009. Prime accused Gali Janardhana Reddy and his brother-in-law and OMC managing director BV Srinivas Reddy were arrested from their Bellary residence in Karnataka on September 5 and are lodged at Chanchalguda Central Jail here.
