Author: Omer Farooq
Publication: The Pioneer
Date: November 16, 2009
URL: http://www.dailypioneer.com/216140/Rebel-Reddy's-Andhra-links-exposed.html
Troubles are piling up for powerful mine baron
and Karnataka's BJP Minister Galli Janardhana Reddy over the alleged mining
scam as fresh facts are coming out with each passing day. Janardhana Reddy,
one of the most powerful and influential mine owners in Karnataka and Andhra
Pradesh, is facing a wide range of allegations, including illegal mining,
overstepping the leased land into other areas, manipulating the border between
the two neighbouring States and plundering the reserve forest area.
While Opposition parties - TDP, CPI, CPI(M)
and Lok Satta - have decided to intensify their protest against "mining
mafia" and take the issue to the people with State-wide demonstrations
on Monday, Janardhana Reddy has charged that the Opposition was trying to
target him and Jaganmohan Reddy after the death of YS Rajasekhara Reddy. Obviously,
Andhra Pradesh is going to see the most intense battle over its mineral wealth
in the days to come.
The story of powerful Reddy brothers, who
originally hail from the Rayalaseema region of Andhra Pradesh, began in 2001
when their two family-owned companies - Obulapuram Mining Company and Anantapur
Mining Corporation - leased three mines measuring 25.98 hectares, 39.5 hectares,
and 68.5 hectares in Obulapuram and H Siddapuram villages of Anantapur district,
adjoining Bellary.
Although the Opposition parties have been
raising allegations of irregularities against Reddy brothers over the last
few years, with a close family friend Rajasekhara Reddy at the helm of affairs,
the parties could not make much headway in their demand for a thorough probe
and action against what they called "mining mafia".
In 2006, a survey committee constituted by
YSR gave a clean chit to OMC. But the issue is back in focus now with Anantapur
district forest officer Kallol Biswas issuing show-cause notices to OMC and
ordering it to suspend the mining operation.
However, the company has not yet complied
with these notices and the State Government has sent yet another three-member
committee of forest officials to look into the charges.
Janardhana Reddy commands formidable political
clout and influence in both Karnataka and AP. While he and his brother Revenue
Minister Karunakara Reddy had a stranglehold over the BJP Government in Karnataka,
they were also very close to late Chief Minister YSR and his family. This
has prompted the main Opposition Telugu Desam Party to allege that YSR family,
especially his son YS Jaganmohan Reddy, has business interests in the mining
operations of Janardhana Reddy. Also there are allegations that Janardhana
Reddy had made investments into the media company owned by Jagan.
The Opposition has also pointed out that OMC
managing director Srinivasulu Reddy was a distant relative of YSR. Similarly,
Ramachandra Reddy, the joint managing director of Brahmini Industries of Janardhana
Reddy, was the Congress MLA from Rayadurg in Anantapur.
Questions have also been raised about another
company - Red Gold - which has been given 50 per cent stake in one of the
mines of OMC. The company, which belongs to Janardhana Reddy's nephew Krishna
Reddy and Srinivasulu Reddy's younger brother Venkatram Reddy owns 50 per
cent of the 68.5 hectares of mine at Obulapuram village. He also gave 10 per
cent stake to another person Ramasubba Reddy, a former official of Andhra
Pradesh Mineral Development Corporation on the ground that the company needs
the services of an expert.
Another serious question was how OMC can export
the iron ore mined from Obulapuram when it was supposed to be a captive mine
meant for the proposed Brahmini Steel plant coming up in YSR's home district
Kadapa. The company has already mined one million-tonne ore from this mine
and exported it. Janardhana Reddy has defended it saying the proceeds from
the mine were invested to the tune of Rs 1,500 crore in setting up the plant
which will go on stream in October 2010.
Janardhana Reddy has also admitted that he
was setting up the steel plant on the advice of YSR to create thousands of
jobs for the people in the region. The lease of Obulapuram mine ends in 2017.
The serious allegations that OMC had encroached
other areas exceeding the limit of the leased mines has attracted the attention
of the Central Empowered Committee on Environment and Forests, constituted
by the Supreme Court to save forest and wildlife. OMC is also facing the charges
of cutting down the reserve forest to lay roads to connect the mines both
in Karnataka and Andhra Pradesh.
In the latest development, CEC has contacted
the Chief Conservator of Forests in Andhra Pradesh and sought all the details
and documents about OMC. In its communication to the Chief Conservator of
Forests, the CEC has said prima facie there were discrepancies in the sketches
of mines approved for lease.
The CEC has asked State officials to send
the show-cause notice issued to OMC by Anantapur district forest officer Kallol
Biswas along with other documents, the sketch maps prepared by the forest
department and various other documents. The CEC members were likely to visit
the mining areas of Anantapur district soon for an on-the-spot assessment.
Opposition parties have been alleging that
all the unsavoury activities, encroachments and illegal mining were known
to the Congress Government but it had bowed to the mining mafia and refused
to take action against them. Leader of Opposition N Chandrababu Naidu alleged
that the State had suffered a loss of Rs 10,000 crore due to the "looting"
of the mineral assets of the State.
Meanwhile, Janardhana Reddy has strongly denied
any wrongdoing and said that no mine owner can export minerals unless he pays
all taxes on each and every tonne by completing all the records.
Rosaiah promises action
PNS | Hyderabad: With four Opposition parties
mounting pressure on the Andhra Pradesh Government for cancellation of mining
lease of Obulapuram Mining Company of Janardhana Reddy, Chief Minister K Rosaiah
has assured action in accordance with the law, adding that there is no question
of succumbing to any pressure or shielding anyone on the issue.
A delegation of Opposition leaders, N Chandrababu
Naidu (TDP),
BV Raghavulu (CPI-M), K Narayana (CPI) and
Jayprakash Narayan (Lok Satta), met the CM at his residence on Sunday morning.
They submitted a memorandum demanding immediate cancellation of lease of the
mines and ordering a probe into the alleged illegal activities of the company.
The Opposition leaders met the CM a day before
the parties' proposed protest demonstrations in all district headquarters
on Monday. The four parties were also organising a road blockade between the
Obulapuram mines and Krishnapatnam port in Nellore district from where the
iron ore is exported by OMC.
In an official statement, Rosaiah said that
even before the Opposition leaders making a representation to him he had held
three meetings with the officials and reviewed the situation. He said that
the Government will take a decision after proper consideration of the issue.
Chandrababu Naidu expressed his dissatisfaction
over the response of the Chief Minister and wanted to know how many more months
will be required for the Government to consider the issue when all the facts
were before it.
