Hyderabad: A special CBI court bail, granted to ex-bureaucrat V.D. Rajgopal of APMDC was cancelled by AP High Court on Monday, leading to his possible re-arrest in Obalapuram Mining Co., illegal deals case, which involves Gali Janardhan Reddy too.

The High Court said CBI was still investigating VDR’s role in the scam.  CBI had challenged the bail granted in a special court verdict.

VDR was MD of MD of state-owned AP Mineral Dev. Corporation, who gave iron ore mining leases to OMC. CBI argued that the grant of bail jeopardized that ongoing investigation.

CBI had not yet recovered the ill-gotten wealth of thousands of crores of rupees value.

Meanwhile, a counter petition to the CBI, has been filed in HC by Srilakshmi, IAS now on bail in OMC case.

The special CBI court orders on a 4th bail petition of GJ Reddy and brother-in-law are awaited on Dec 28.