Chevella Chellemma, Home Minister P Sabita Indra Reddy of Andhra Pradesh said that, the arrested IAS officer Y Srilakshmi forced me to grant the additional 25 hectares of leased land to the Obulapuram Mining Company for iron Ore mining, but her effort was failed.  The further lease grant rejected  by home minister P Sabitha Indra Reddy who was minister of mines and geology at that time, because till that day OMC had lease hold rights of over 100 hectares of land.

There was another reason for rejection of this additional 25 hectares of land to OMC, We had a decision to grant the land for state-owned AP Mineral Development Corporation (APMDC).

Minister said, “I also remember Srilakshmi brought the issue to my notice on a couple of occasions and told me that she would be sending a note recommending a further grant of 25 hectares to OMC, for the first time I responded politely, but she is repeatedly asking for that grant, at that time I lost my patients and I scolded her, she did not say anything about it”.  She said she did not know whether Srilakshmi was under pressure from the then chief minister Y S Rajasekhara Reddy.

Sabita Indra Reddy asked YSR about the two posts allocation for V D Rajagopal, who was also arrested in the mining case, “Why we need to allow him as the director for mines and geology as well as VC&MD of Andhra Pradesh Mineral Development Corporation (APMDC).”   YSR said, that “I can’t able to find a suitable replacement for him”.

Sabitha Indra Reddy, after being shown the GO without carrying the clause of captive mining, reacted, “I am surprised as to why the secretary ignored this aspect. Even if that had happened by mistake, it could have been rectified.