HYDERABAD: Former CBI special judge B

on Monday deposed before the ACB court principal special judge in the infamous cash-for-bail case and claimed he was offered 40 crore for setting mining baron

free on bail. Later, Sarma's successor T Pattabhi Rama Rao and a high court judicial officer were trapped by law-enforcing agencies for accepting alleged bribe to grant bail to the mining baron.

The alleged bribe offer was made by then

HC registrar (enquiries) K Lakshmi Narasimha Rao reportedly on behalf of Gali's men in April 2012. The mining baron was then under judicial custody at the Chanchalguda jail after his arrest in September 2011 by CBI in the illegal mining case.

"I rejected the offer out rightly and walked out of the house of the registrar," Sarma, deposing as a witness, said. He later dismissed Gali's bail plea, which was pending before him. The case has now reached the trial stage.

The ACB special court, Hyderabad, recorded the evidence of Sarma and the process is called chief examination. The court posted the case to September 13 for further hearing. On that day Gali Janardhan Reddy's counsel might cross examine Sarma. When the court was recording the evidence of Sarma, the mining baron was present in the court.

Sarma, in his deposition, said he was posted as the special judge of CBI court in Hyderabad in April 2011. "In the third week of April 2012, HC registrar Lakshmi Narasimha Rao had called me over the phone and conveyed his intent to visit me," Sarma said.

"As he was my senior and also holding a higher post (HC registrar), I told him that I would pay visit instead and took his address. On the morning of April 18, 2012, I went to his house. After general discussion, Narasimha Rao revealed about the 'proposal' to release Gali on bail. I refused his proposal and informed him that deviating from the path of the law is death for me. It was at this stage that Lakshmi Narasimha Rao revealed that Gali's men were prepared to shell out 40 crore for the favour. I bluntly refused his proposal and left his house," the former CBI judge said

"The reason I chose to go to Narasimha Rao's house was because he was senior and was with the HC. Thought he needs some information and it would be fair if I go and brief him. I did this out of respect for a senior," he added.

Subsequently, Pattabhi Rama Rao, Sarma's successor at the CBI court, had granted bail to the mining baron and was caught in a joint operation by CBI and ACB officials while allegedly accepting bribe. He was arrested and sent to jail. In July 2012, the ACB officials had arrested Lakshmi Narasimha Rao too.