Rao was a judge in the city civil fast-track court. He was suspended after searches were conducted at his residence by the Anti-Corruption Bureau (ACB), Andhra Pradesh.
He is the third judge to be suspended by the HC in connection with the scandal. Earlier, Prabhakar Rao, a Family Court Judge at Srikakulam district, and Special Judge for CBI Cases Pattabhirama Rao were suspended for their alleged involvement in the scam.
A case against Pattabhirama and seven others were registered under sections of Prevention of Corruption Act (PCA) and Indian Penal Code (IPC) after the matter was referred to the ACB.
The accused arrested so far in the case includes Pattabhirama, his son Ravichandra, history sheeter Yadagiri Rao, retired Judge TV Chalapathi Rao and Ravi Suryaprakash Babu, a realtor, for teh scam.
"Laxminarasimha Rao called Prabhakar Rao to his house in the presence of Suryaprakash Babu and persuaded Prabhakar Rao to meet Special Judge for CBI cases Pattabhirama Rao, with the offer of Rs 10 crore for granting the said bail," an ACB release said.
Mining czar Janardhana Reddy, V Srinivas Reddy, his brother-in-law and MD of OMC were arrested for their alleged involvement in the illegal mining scam on Sept 5, 2011 from Bellary, Karnataka.
Janardhana Reddy is currently lodged at the Bangalore Central Prison.