Janardhana Reddy's firm violated all norms in Bellary: SC panel

BANGALORE: The Central Empowered Committee of the Supreme Court has recommended extension of the ongoing CBI probe against G Janardhana Reddy in Andhra Pradesh to Bellary district of Karnataka in light of blatant illegal mining perpetuated by one of his firms.

CEC, the forest bench of the Supreme Court which has been investigating the extent of illegality in iron ore mining in Karnataka, in its report dated September 21, 2011, has found that the Associated Mining Company (AMC) owned by Reddy had violated all norms and regulation while carrying out its activities in Bellary.

In its report submitted to the Supreme Court, it has stated, “the CEC is firmly of the view that CBI, which is presently carrying out the investigation regarding illegal mining from the mining leases in Bellary Reserved Forest falling in Ananthpur district in Andhra Pradesh and associated issues, may be asked to investigate and take appropriate follow up action in respect of illegalities pertaining to the mining leases of AMC.”

AMC, which is effectively owned by Reddy has found to be violating all kinds of regulations. CEC, in its report has found serious illegalities relating to (a) by way of illegal grant of renewal of mining lease, (b) the existing locations of the boundary pillars being completely different from the sanctioned lease sketch and (c) quantity of iron ore shown to have been produced and dispatched from the mining lease being far in excess of quantity that could have been physically produced and dispatched from such a small area of mining lease.

For example, AMC which had a mining lease of 10.12 hectares has shown a production of one milliontonne of iron in 2009-10. “Considering the small size of the lease areas, it is not possible to attain such a high-level of production of iron ore,” CEC said.
The strong suspicion is that the transport permits from the above mentioned lease was used to illegally ferry iron ore from other locations. Even the ownership of AMC taken over by Reddy was under highly dubious circumstances, the report has said.