Reports revealed that CBI court judge T. Pattabhirama Rao had allegedly struck a deal with incarcerated former Karnataka minister and Obulapuram mining scam accused Gali Janardhan Reddy.

The CBI is suspecting the involvement of several heavyweights including two Karnataka MLAs, a retired judge and a realtor and rowdy-sheeter besides a junior advocate in the deal for bail that was exposed.

The CBI has submitted a detailed report to the Chief Justice of the AP High Court regarding the alleged transaction.

It is now looking at options like handing over the case to the Anti-Corruption Bureau through the state government or to issue a separate FIR after the state requests the Centre to hand over the case to the CBI.

Agency sources said that the deal amounted to Rs 15 crore. CBI officials recovered Rs 3 crore from the bank locker and residences of the brother of one of the middleman, Chalapathi Rao, a retired judge. Sources added that about Rs 6 crore went to the middlemen.

While the CBI had done most of the investigation on Saturday, May 26, the issue came to light only on Thursday when the High Court suspended Pattabhirama Rao.

Sources said that the CBI started looking for the cash thanks to a tip-off received due to internal squabbles between the middlemen. The CBI was also monitoring the phone calls of the suspects.

CBI officials visited the Ashoknagar branch of SBI and learnt that the lockers were not in anyone’s name but the judge’s son was operating them.

Gali bail: CBI on the money trail

The CBI officials recovered the keys of an SBI locker from CBI judge Pattabhirama Rao’s son, from the judges’ quarters at Banjara Hills. Sources said cash was recovered from lockers of two banks.
The cash was allegedly brought from Bellary by Janardhan Reddy’s brother Somasekhara Reddy and another Karnataka MLA T.H. Suresh Babu.

The CBI, however, is yet to ascertain whether the cash came to Hyderabad via hawala or was brought in by road. The cash was distributed from a star hotel at Banjara Hills to the middlemen who allegedly handed it over to the judge’s son.

The CBI will be going over CCTV footage to ascertain who visited the hotel; it is also suspecting that Somasekhara Reddy stayed in the same hotel.

The CBI is also probing the role of the middlemen, retired district judge Chalapathi Rao, real estate broker Yadagiri, MLAs and an advocate.

Call data of the accused showed that a junior advocate was also in touch with them. Though he was awa-re of the deal, sources said he didn't take part in it.

Meanwhile, law minister Erasu Pratap Reddy denied media reports of his involvement and said, “It’s a baseless allegation that I am involved. I have no role in it. If they prove that I am involved I will quit politics. Gali Janardhan Reddy and Jagan Mohan Reddy are distantly related to me but I am in no way connected.”

On May 5 and 7, there were arguments regarding granting bail to Janardhan Reddy in the CBI court and Pattabhirama Rao granted bail on May 11 though he denied the same to IAS official Y. Srilakshmi. He, however, didn’t give the order copy to either the CBI or to Janardhan Reddy.

The order to hold it in abeyance was also denied. The order copy was given only on May 14.
Following this, the CBI appealed in High Court which stayed the order granting bail on May 23.
A CBI sources said, “There are many skeletons in the cupboard. They were desperate and resorted to dubious means to get bail.”

The High Court has already ordered a probe by its vigilance wing and it is up to the state government to grant permission to the CBI to prosecute the judge as he is appointed by the state.