Senior IAS officer Y. Srilakshmi, arrested in connection with the alleged illegal mining case involving Janardhan Reddy-owned Obulapuram Mining Company, was today remanded to three-day CBI custody by a local court.

Ms Srilakshmi was produced before the special court which sent her to three-day custody and directed the central agency to produce her before it on December 1 by 4 pm.

Ms Srilakshmi, now Commissioner of Health & Family Welfare, was arrested by the CBI yesterday for her alleged role in the criminal conspiracy and abusing her official position and showing favours to OMC in her capacity as the then Secretary, Industries and Commerce Department.

The CBI had earlier sought 15-day custodial interrogation of the senior IAS officer, accusing her of clearing the mining lease of 68.5 hectares at Obulapuram in Anantapur district of Andhra Pradesh in favour of OMC while overlooking the bids made by other mining companies.

Ms Srilakshmi is one of the accused in the illegal mining case along with Mr Janardhan Reddy, OMC Managing Director, Mr B.V. Srinivas Reddy, and the then mines director, Mr V.D. Rajagopal, all of whom are in jail.

Following allegations of large-scale illegal mining and irregularities in allotment of mining leases to OMC at Bellary Reserve Forest area in Obulapuram and Malpanagudi villages of Ananatapur district, the CBI had registered a case against OMC on December 7, 2009.

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