Things came to a head in 1846 when the
Company authorities assumed land rights previously held by various people who had died in the villages of Goodladurty,
Koilakuntla and Nossum. Encouraged by the discontent of others, Reddy became the figurehead for an uprising. An armed group, initially comprising those dispossessed of inam lands around
Koilakuntla, was led by Reddy's Right-hand man Vadde Obanna in July 1846. The Acting Collector for the area Lord Cochrane, believed that Reddy had material support from fellow pensioners in Bhagyanagar and
Kurnool, whose land rights had also been appropriated. The group soon attracted support from the peasantry and was reported by Company authorities to have rampaged in
Koilkuntla, taking back the looted treasury there and evading the
police before killing several officers at Mittapally. They also plundered
Rudravaram before moving to an area near Almore, pursued by the East India Company forces who then surrounded them. A battle between Obanna's 5000-strong band of rebels and a much smaller British contingent then took place, with around 200 of the rebels being killed and others captured before they were able to break out in the direction of
Kothakota,
Giddalur where Reddy's family were situated. Having collected his family, he and the rest of his contingent moved into the
Nallamala Hills. The British offered incentives for information regarding the whereabouts of the rebels, who were again surrounded amidst reports that unrest was now growing in other villages of the area. In a further skirmish between the rebels and the British, who had sent for reinforcements, 40–50 rebels were killed and 90 were captured, including Reddy. Although there was no
evidence of Obanna's capture, he most possibly was also a captive along with his leader.
Warrants were issued for the arrest of nearly 1,000 of the rebels, of which 412 were released without charge. A further 273 were bailed and 112 were convicted. Reddy, too, was convicted and in his case received the death penalty. On 22 February 1847, he was executed in Koilkuntla in front of a crowd of over 2000 people. Reddy's head on the fort wall was in public view until 1877. The
East India Company reported in their district manual of 1886 that ==Legacy==