Andhra Pradesh IAS officer Y Srilakshmi was sent to Chanchalguda prison after her three-day CBI custody ended on Thursday, even as the state government issued orders placing her under suspension.

Srilakshmi, the state industries secretary from 2006-09, was arrested by CBI on November 28 in the illegal mining scam.

The local CBI court remanded her in judicial custody till December 12, while reserving judgement till tomorrow on her bail petition.

Looking jaded, Srilakshmi pleaded the CBI court that she be lodged only in CBI office here and not sent to prison for the duration of judicial custody. The court, however, turned down her plea.

Accordingly, the 1988-batch IAS officer was shifted to the women prison at Chanchalguda. Her husband M Gopi Krishna, an AP cadre IPS officer of 1987 batch, was present in the court hall when the remand order was issued.

Meanwhile, state chief secretary Pankaj Dwivedi issued the suspension orders upon receiving a report from the CBI about Srilakshmi's arrest, officials said.

Srilakshmi was holding the post of family welfare Commissioner when she was arrested by CBI.

She was accused of issuing the controversial ordecs granting leases for mining of iron ore in Anantapur district to Obulapuram Mining Company (OMC) owned by former Karnataka minister Gali Janardhana Reddy, who is the prime accused in the case.

According to Srilakshmi's bail plea, she was only involved in processing of the file which led to issuance of the government order granting the lease.

The lease had been provisionally granted by the Andhra Pradesh government one year before she took charge as secretary, Industries, it said.

"The order was issued after approval by the then Andhra Pradesh minister for mines (Sabita Indra Reddy who is the current state Home Minister)," the bail plea stated.

CBI's deputy legal adviser (DLA) B Ravindranath said, "It is not proper to blame the minister as it is the secretary who should safeguard the interest of the state and guide the minister."

He alleged Srilakshmi was closely involved in criminal conspiracy and had knowledge of the scam and of monetary transactions (bribes paid) for procuring the lease.

The CBI lawyer claimed Srilakshmi favoured OMC by ensuring that it got mining lease on two stretches of 68.5 hectares and 39.5 hectares respectively in Anantapur district of Andhra Pradesh in June 2007.

"Srilakshmi also gave all the letters (that had been sent to the centre) to official representative of OMC, D Rajasekhar, a relative of former director of mines V D Rajagopal, arrested by CBI in this case," he said.

There was no reason for her to pass on official information to private individuals, he said.

OMC had so much access to her office that it could obtain official and confidential records, Ravindranath said.

Srilakshmi is an "influential person" and would disturb investigations if set free on bail, he submitted.

"The case is at a crucial stage and the charge sheet is likely to be filed tomorrow," he said.

The prosecution also doubted authenticity of her medical reports, saying most of these reports were issued only after her name was added to the list of accused in the OMC case.

The other accused, former Karnataka minister Gali Janardhan Reddy, OMC managing director B V Srinivas Reddy and the then mines director V D Rajagopal are already in jail in the case.