Illegal mining: CBI arrests former Karnataka minister Janardhana Reddy, cash seized

Bangalore/Hyderabad - 05 Sep 2011: An 11-member Central Bureau of Investigation(CBI) team early on Monday morning arrested former Karnataka minister and mining baron GJanardhana Reddyin Bellary, 300 km from Bangalore, on charges of illegal mining operations in the Reddys' Obulapuram Mining Company (OMC) in Andhra Pradesh.

The team led by CBI DIG Lakshminarayana, Andhra Pradesh, after conducting raid at the residence of Reddy also arrestedSrinivasa Reddy, managing director of OMC. Soon after the arrest, the CBI took them to Hyderabad and will be produced before the special CBI court this afternoon. Another team of CBI conducted simultaneous raids on Parijatha, Reddy's residence in Bangalore.

During the raid at Reddy's residence, the CBI team found Rs 3 crore in cash and 30 kgs of gold. At Srinivasa's house, the investigating team found Rs 1.45 crore cash and gold ornaments.

CBI has also attached two helicopters owned by Janardhana and also seized several documents related to iron ore export and bank transactions outside the country.

Several IAS, IFS officers also will be questioned in connection with illegal mining at Obulapuram and some of them are expected to be arrested today. CBI is preparing a detailed report to submit at the special court wherein it was learnt that 174 names are included.

TheAndhra Pradesh governmenthad in November, 2009 ordered a CBI inquiry following allegations of illegal mining in the Obulapuram area. TheAnantapur Mining Corporationand the Obulapuram Mining Corporation, owned by Janardhana Reddy and his brother G Karunakara Reddy are situated in Rayadurga in Ananthapur a district in Andhra Pradesh, bordering Bellary in Karnataka.

Besides are accused of mining far beyond their leased area, Reddys have accused of mining deep into the Bellary-Andhra Pradesh Reserve forest area. They are also accused of damaging state-border demarcation area blasting the Sugulamma Devi temple on the border. Former Karnataka Lokayukta Justice N Santosh Hegde's report throws light OMC doing illegal mining in Karnataka and exporting ore via Andhra to ports in east coast like Vishakhapatnam, Kakinada despite ban by Karnataka government on exporting iron ore.

The timing of the arrest is at when his close associate and former minister B Sreeramulu resigned his assembly membership on Sunday threatening the ruling BJP to float a new political outfit, after BJP central leadership refused Cabinet berths for the Reddy brothers following Lokayukta indicting them in illegal mining report. The arrest and resignation comes at a time when chief minister DV Sadananda Gowda has completed exactly a month in the office. The arrest is blessing in disguise for the party as the Reddy brothers were upping the ante to induct them in the Cabinet claiming that they have done no wrong and were falsely indicted in the report.

The 45-year old Janardhana Reddy was tourism and infrastructure minister in theBS Yeddyurappa government. They turned millionaires from ordinary man in short span of time after iron ore boom in early 2000. Janardhana Reddy had also proposed the state government to set up Rs 36,000 crore steel industry in Bellary, which was later withdrawn by him. The Reddy brothers have huge influence in the district, which has made them powerful netas. Janardharn Reddy is known to lead lavish life. He owns a helicopter and often heli-hops from Bellary to capital Bangalore. Couple of years ago Reddy donated a diamond studded crown worth over Rs 40-crore to Lord Venkateshwara in Tirupati.

source: TOI