The Supreme Court has constituted a high-level committee to investigate the extent of illegal mining and unauthorised activities in the Obulapuram mining case in Andhra Pradesh, a matter that has been under judicial scrutiny for over a decade. The case is closely linked to Karnataka mining baron and former Bharatiya Janata Party (BJP) minister Gali Janardhan Reddy, who faces allegations of large-scale illegal iron ore extraction.
A bench led by chief justice of India BR Gavai, along with justice K Vinod Chandran and justice NV Anjaria, passed the order after considering a request from the AP commissioner and director of mines & geology, who wrote to the Court on 18 September 2025. The state government urged that an expert committee be formed to demarcate leasehold boundaries and examine encroachments into reserved forest areas. Although the respondent in the case argued that the scope should be confined only to lease demarcation, the bench accepted the state’s recommendation and approved a broader mandate.
The committee will be headed by justice Sudhanshu Dhulia, a retired Supreme Court judge. It will also include a member nominated by the central empowered committee (CEC), senior officials from the AP departments of industries & commerce, environment & forests, and revenue, as well as a representative from the Union ministry of environment, forest and climate change. The revenue secretary of Andhra Pradesh or a nominee of equivalent rank will serve as convenor to coordinate meetings and assist in preparing the report.
The panel has been tasked with identifying the boundaries of leased areas and forest land, examining the extent of encroachment, and investigating the scale of unauthorised mining and other illegal activities. The Court has directed the committee to submit its findings within three months.
The Obulapuram mining case dates back to 2009, when allegations of rampant illegal mining in Andhra Pradesh and Karnataka came to light. Investigations by central bureau of investigation (CBI) and other agencies had pointed to massive irregularities in iron ore extraction, transportation, and export. The scandal implicated several high-profile individuals, including Gali Janardhan Reddy, who was then the tourism and infrastructure minister in Karnataka.
Mr Reddy and his associates were accused of creating shell companies, using political influence to secure leases, and encroaching upon forest land to extract ore well beyond the permitted limits. The magnitude of the scam triggered public outrage and led to widespread demands for stricter oversight of mining operations in both states. While charges have been framed and proceedings have been ongoing, Mr Reddy and others remain out on bail, and the case has continued to draw attention due to its scale and political overtones.
The Supreme Court’s decision to appoint a fresh committee is being seen as a renewed attempt to establish the factual extent of encroachment and illegal mining activities which will be crucial in determining the accountability of those accused. The findings of the panel are expected to significantly influence the future course of the case against Mr Reddy and his associates.
The case has already witnessed multiple interventions by courts and central agencies, but questions remain over the full scope of damage caused to forest land and whether mining companies far exceeded their legal entitlements. By tasking a committee led by a former judge, the Supreme Court has signalled the importance of a credible, transparent and time-bound assessment.
With the panel required to present its report in three months, the next phase of the Obulapuram case could prove decisive, shaping not only the legal trajectory of Mr Reddy and his co-accused but also setting a precedent for how India deals with large-scale mining scandals that straddle politics, business and environmental concerns.
In May this year, a special CBI court in Hyderabad sentenced the former minister and four others to seven years of rigorous imprisonment for their role in the multi-crore iron ore mining scam.
The special judge for CBI cases convicted Mr Reddy along with VD Rajgopal, former director of mines & geology in AP, BV Srinivasa Reddy, then managing director (MD) of Obulapuram Mining Company Pvt Ltd (OMCPL), Mehfuz Ali Khan, partner of Devi Enterprises and the company OMCPL itself. All four sentenced to seven years’ rigorous imprisonment. The Court also imposed fines totalling Rs1.4 lakh, including Rs1 lakh on OMCPL.
CBI had registered the case in December 2009, accusing the accused of criminal conspiracy to carry out large-scale illegal iron ore mining. Investigations revealed that they trespassed into government and private lands, causing losses of over Rs800 crore to the exchequer. The first charge-sheet was filed in December 2011, followed by three supplementary chargesheets. After years of trial, the CBI court held the accused guilty of offences including illegal mining, conspiracy, and trespass.
Earlier, in June 2023, a CBI court ordered the seizure of Mr Reddy's properties and also those in the name of his wife Gali Aruna Laxmi until criminal cases against them are disposed.
In the same year, Mr Reddy floated a new political party before the assembly elections in Karnataka.
He won from Gangavathyand his wife Aruna pushed BJP to the third place in the Ballary City seat.
