Deccan Mining Syndicate (DMC) and Associated Mining Corporation (AMC) owned by the mining baron and his wife faces the charges of illegal mining and is still ongoing. His bail plea was rejected by the Bangalore CBI special court. The next hearing in the case will be on May 23. Janardhana Reddy is currently lodged at the Parappana Agrahara Central Jail.
The CBI chargesheet alleges Reddy of hatching a plot with suspended IAS officer Rajagopal, late Linga Reddy and the then Industries and Commerce department secretary Y Srilakshmi to ensure that the OMC was granted mining leases for area of 68.5 and 39.5 hectares, respectively.