The Andhra Pradesh High Court has cancelled the bail of senior IAS officer Y Srilakshmi on Monday. Srilakshmi happens to be accused No. 4 in Obulapuram Mining Company (OMC) case. The Special CBI Court in Nampally, Hyderabad had earlier granted a conditional bail to Srilakshmi. Justice N.R.L. Nageswara Rao directed Ms Srilakshmi to surrender before the court by January 6, failing which she could be arrested.

The 1988-batch IAS officer was secretary of industries in the YS Rajasekhara Reddy government when OMC was granted leases for iron ore mining in Anantapur district.

The senior IAS officer was arrested on November 28 and the CBI court granted her bail on December 2.In fact, Home Minister Sabitha Indra Reddy, who had signed the GO in her capacity as the Minister for Mines then, also told the CBI during interrogation that she had signed a note file which consisted of the word ‘captive mining’  and she had no knowledge on how the word disappeared from the note. However Sri Lakshmi claimed that she had no knowledge of removing the word ‘captive’ in a full phrase of ‘captive mining’ in the government order

The judge observed that none of the grounds considered by the CBI special judge is proper and tenable and described the bail order as arbitrary. He found that there was more than sufficient material available on record as to how Ms Srilakshmi was associated with grant of lease and issuing of GOs that ultimately favoured the OMC, ignoring vital conditions like the purpose of the lease being for ‘captive mining’ for the steel plant proposed to be set up by the OMC.

Justice Nageswara Rao also said that it is sad and unbecoming of an officer of the rank of a secretary of the government to plead that the GOs were issued without her knowledge. “She is an IAS officer and her husband is an IPS officer. She claims to be a brilliant and intellectual person and has a high level of understanding,” he said. “Evidently, the orders were issued in her name and she cannot disown the authenticity or the legality of it. Her claim that she did not initiate the GO or see it is reflecting her higher degree of intelligence and being conscious of the effective omission evidently intended to benefit OMC, she might not have put her initials. This is real culpable criminal conspiracy,” he added

The judge found that Ms Srilakshmi’s subordinates’ statements clearly show that she was aware and the GOs were issued with her concurrence. “It is to be noted that there was a conspiracy between the respondent and other accused and the other accused are already in judicial custody,” the judge said. He added that the investigation against Ms Srilakshmi was not completed and if she is free till it is completed, she will take advantage to destroy the evidence against her and others.

Srilakshmi was arrested by CBI on charges of abusing the official position to grant favours to former Karnataka minister Gali Janardhan Reddy-owned OMC. CBI had argued that as she was an IAS officer and her husband an IPS officer, there was a chance that evidence would be tampered with if she was set free. The High Court observed that Ms. Srilakshmi had betrayed her official duty and did not deserve the bail, which the lower court granted wrongly. Accordingly the High Court today reversed the order and asked her to surrender before the CBI special court before January 6.