The Karnataka High Court dismissed the petition filed by former minister and mine owner Janardhan Reddy on Thursday. The petition had challenged CBI Special court order extending custody of Janardhan Reddy after March 12th. Judge N Ananda upheld the lower court order and noted that CBI in Karnataka had sought custody of Janardhan Reddy not only to identify co-accused Mehfooz Ali Khan but also to verify the source of iron ore seized from Associate Mining Company in Karnataka.

Janardhan Reddy was remanded to Judicial Custody till March 24 by a CBI Special court. Meanwhile a CBI team headed by Superintendent of Police Subramanyeshwar Rao inspected mining areas of Associated Mining company in Ramgad mining area in Sandur taluk of Bellary district. It is alleged that the Associated Mining Corporation and Deccan Mining Syndicate routed their iron ore through the Obulapuram Mining Corporation belonging to Janardhan Reddy. CBI is investigating the matter as per the Supreme Court directives.