The CBI on Monday arrested Karnataka mining baron Gali Janardhan Reddy and his brother-in-law Obulapuram Mining Company MD Srinivas Reddy on the charges of illegal mining. Janardhana Reddy has been arrested on charges of criminal conspiracy and cheating after conducting raids on his Bellary residence. Srinivas Reddy, the managing director of Obulapuram Mining Corporation (OMC) which is owned by Janardhan Reddy brothers, has also been arrested.

The CBI recovered 30 kg gold and Rs 3 crore cash from Janardhana Reddy's residence and Rs 1.5 crore cash from Srinivas Reddy in the raids conducted at their residences on Monday. The arrests have been made under a 2009 FIR under sections of criminal conspiracy and cheating and also prevention of corruption act. An FIR was registered in 2009 after the Supreme Court appointed Central Empowered Committee wrote a letter against the Obulapuram Mining Company.

The CBI team led by its DIG, VV Lakshminarayana entered Janardhana Reddy's house late on Sunday night and escorted him to an undisclosed location for questioning, sources said. Both the Reddys have been taken to the CBI court in Hyderabad and will be produced at around 4 pm. The CBI is likely to demand for 15 days of custody of the duo.