Hyderabad: The Telangana High Court on Wednesday, August 20, issued notices to Obulapuram Mining Company (OMC) in connection with the illegal mining case in which the company figures as one of the accused.
The development came after the CBI filed a revision petition challenging the order of the CBI Special Court, which had imposed only a fine of Rs 1 lakh on the company. The petition was heard by Justice K Laxman.
Appearing for the CBI, Special Counsel Srinivas Kapatia argued that there is clear evidence of irregularities against OMC.
Also ReadOMC case: HC issues notices to ex min Sabitha Indra Reddy, ex-IAS officer Kripanandam
He stated that the then IAS officer Srilakshmi colluded with the company by not including the term “captive” in the mining lease approvals. Taking advantage of this omission, OMC allegedly sold the extracted mineral in the open market, making an unlawful gain of about Rs 4,310 crore.
Further, the agency highlighted that between 2007 and 2010, the company accrued net profits of around Rs 884.13 crore. T
The counsel contended that the directors of OMC had unjustly enriched themselves and that the penalty of just Rs 1 lakh imposed by the lower court was grossly inadequate. He urged the High Court to enhance the punishment.
After hearing the arguments, the judge admitted the CBI’s petition and issued notices to OMC, posting the matter for further hearing on September 17.
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