After High Court Nudge, Karnataka Govt Authorises CBI To Attach Excess Properties Of Mining Baron Janardhana Reddy

Additional Advocate General Dhyan Chinnappa though pointed out to the court that an earlier authorisation was granted by the state government in the year 2015 for attaching properties of the same accused was not pursued till 2021, for around seven years by the CBI before the concerned court. He submitted that the CBI which is now complaining has many many problems which he is not dealing with.

A single judge bench of Justice M Nagaprasanna then responded by saying “You (CBI) are sitting in a glass house and throwing stones at somebody else.” It added “You have not pursued the matter before the special court, why is there a delay of seven years...how can you justify this delay?.

The Central Bureau of Investigation (CBI) had moved the Karnataka High Court seeking a direction to the State government for expeditious consideration of a representation made by it on August 30, 2022, for attachment of the properties of accused.

The petition filed through Advocate P Prasanna Kumar had said that as per the investigation, Reddy along with his associates caused wrongful loss to the State to the tune of 198 crores by indulging in illegal mining activities. It was alleged that Reddy engaged in large scale mining in Bellary and surrounding areas thereby causing wrongful loss to the government.

Further, during investigation, it was found that there were certain properties held by Reddy and the companies connected to him. The plea claimed that since the representation was made, Reddy had allegedly begun disposing of these properties in order to evade the procedure of law. The properties were traced by the CBI in the name of Reddy, his wife and company in Andhra Pradesh, Telangana.

In its order the bench on noting the submission of the state government said “The CBI shall pursue the matter and take the issue to its logical end and not wake up from slumber and then file application after seven years. In light of the order being passed no order is necessary to be passed. Accordingly the petition is disposed of."

The court also expunged the adverse observations made against the state government in its earlier order.

Case Title: Central Bureau of Investigation And State of Karnataka

Case No: WP 402/2023

Citation: 2023 LiveLaw (Kar) 12

Date of Order: 12-01-2023

Appearance: Advocate Prasanna Kumar P for petitioner

AAG Dhyan Chinnappa for respondent.