Andhra Pradesh’s home minister in CBI net over illegal mining

Oct31, 2011 | Agency: DNA

Hyderabad :In an effort to step up the investigation into the illegal iron-ore mining by jailed mining baron Gali Janardhana Reddy, the CBI has brought Andhra Pradesh’s home minister Sabitha Reddy under its scanner.

CBI officials questioned Reddy for two hours late on Friday. She was the mines minister from 2004 to 2009 during former chief minister YS Rajasekhara Reddy’s regime and is believed to be instrumental in offering several clearances to various mines companies, including that of Janardhana Reddy.

Obulapuram Mining Company (OMC), owned by Janardhana Reddy, was granted mining leases during YSR’s regime and several files pertaining to the leases were endorsed by Sabitha Reddy. Interestingly, the former mines minister’s questioning follows a grilling of the then mines secretary Sri Lakshmi.

In fact, Sri Lakshmi and the then director of mines, Rajagopal, have been under the CBI scanner and the duo was questioned by the CBI several times.Sri Lakshmi was called for yet another round of questioning by the officials on Friday, followed by Sabitha Reddy’s questioning. However, sources rule out any direct relation between the questioning of the duo.

One key aspect the CBI is looking at is the way the permissions for mining were accorded to Janardhana Reddy’s company. Sources said the CBI has found several interesting aspects in the way the files were cleared. Various approvals for OMC were given by the government and the files were cleared by Sabitha Reddy’s office the same day.

“About six mining leases were cleared on a single day and that is unusual since mining lease is a complicated issue,” the source said. The CBI has already questioned people at various levels starting from the sarpanch of the village where the mines are located to the minister now.

The CBI team has also recently visited Krishnapatnam port, one of the major private sector ports in the country. The port, located in Nellore, was used by Janardhana Reddy to export iron ore. CBI officials are believed to have collected several documents to support their case against him.

Reddy and his brother-in-law, BV Srinivas Reddy, are accused of having indulged in illegal mining and exporting iron ore mined in various places in Karnataka and Andhra Pradesh by using OMC’s invoices.

The duo is currently lodged in the Chanchalguda central prison in Hyderabad. The CBI is said to be ready with the content required for the chargesheet and is expected to file the document within the stipulated timeframe.

Irregularities at Krishnapatnam Port

Monday, 31 Oct 2011

The New Indian Express reported that the CBI team that investigated iron ore exports by the Obulapuram Mining Company owned by Mr Gali Janardhan Reddy through the Krishnapatnam Port has reportedly found several irregularities.

According to sources, it found that 2,000 trucks ferried ore from Obulapuram in Anantapur district to the port in Nellore district daily, each carrying 40 tonnes to 55 tonnes of ore as against the permitted load of 15 tonnes.

However, CBI officials were tight lipped on how many companies were involved in iron ore export from Krishnapatnam between 2007 and 2009 and what OMC’s share was. They simply said investigation is complete and a charge sheet would be filed in a day or two.

It is learnt that the CBI found that 4.2 million tonnes of ore was exported from the port by 80 companies since 2007 but only 1.4 million tonnes was recorded.

It seized some crucial documents during its visit to the customs office after questioning its assistant commissioner Mr K Ranga Rao.

Not satisfied with the answers given by the port authorities, the CBI has issued notices seeking a written reply.

(sourced from IndianExpress)

Iron ore exports under-invoiced

Sat,29 Oct, 2011

NELLORE: The CBI team that investigated iron ore exports by the Obulapuram Mining Company owned by Gali Janardhan Reddy through the Krishnapatnam port has reportedly found several irregularities.

According to sources, it found that 2,000 trucks ferried ore from Obulapuram in Anantapur district to the port in Nellore district daily, each carrying 40-55 tonnes of ore as against the permitted load of 15 tonnes.

However, CBI officials were tight-lipped on how many companies were involved in iron ore export from Krishnapatnam between 2007 and 2009 and what OMC’s share was. They simply said investigation was complete and a charge sheet would be filed in a day or two. It is learnt that the CBI found that 42 lakh tonnes of ore was exported from the port by 80 companies since 2007 but only 14 lakh tonnes was recorded.

It seized some crucial documents during its visit to the customs office after questioning its assistant commissioner K Ranga Rao on Thursday.

Not satisfied with the answers given by the port authorities, the CBI has issued notices seeking a written reply.

CBI joint director V V Lakshminarayana met SP BV Ramana Kumar Thursday and discussed road accidents involving iron ore trucks on the national highway from Kadirinaidupalle in Marripadu to the port that lies in the district.

As per police records, 200 people died and 500 were maimed in 350 accidents involving iron ore lorries during 2007-09.

sourced IBN Live.in

Indian iron ore mining mess - CBI issues notices to 65 iron ore miners

Sunday, 13 Feb 2011
Soon after the Supreme Court lifted its stay on the export of iron ore, the Central Bureau of Investigation, which is conducting an inquiry into illegal mining particularly in the Andhra Pradesh Karnataka border area of Bellary and issued notices to 65 mining companies in the district.
The companies include those owned by Karnataka tourism minister Mr G Janardhana Reddy, his family members and close associates.
The companies have been asked to furnish details about their export, mining lease plans and permits, monthly and annual returns, articles of association, details of company directors and their balance sheets from 1998 to date.
After a CBI team concluded a three day inspection of various mining areas in the district, Mr PV Seetharam inspector of police CBI Bangalore, issued the notices to the companies, which have to respond by February 18.
An official said the CBI's intention is to unearth the Reddy owned Obalapuram Mining Co's deals on mining leases in the district, mutual contracts with other companies, as well as any illegal mining leases and transactions.
(Sourced from domain-B)