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Rediff News  All News  » News » Reddy's company earned Rs 4,300 cr from illegal ore sale: CBI

Reddy's company earned Rs 4,300 cr from illegal ore sale: CBI

January 06, 2012 01:34 IST

The Obulapuram Mining Company Pvt Ltd, owned by former Karnataka minister G Janardhan Reddy, earned over Rs 4,300 crore from illegally selling iron ore, the Central Bureau of Investigation's chargesheet says.

The central agency, probing into the allegations of illegal mining and irregularities committed in allotment of mining leases to OMCPL in Anantapur district of Andhra Pradesh, filed the chargesheet against OMCPL, Janardhan Reddy, his brother-in-law and the firm's Managing Director B V Srinivas Reddy, former Mining and Geology Dept director V D Rajagopal and the then Assistant Director of Mines and Geology Dept late R Linga Reddy last month.

According to the chargesheet, the total amount earned by OMCPL through local sales and exports worked out to Rs 4,310 crore during the 2007-10 period.

It was from this income that Janardhan Reddy purchased a helicopter, stationed in Bangalore, the chargesheet says.

The Reddys and Rajagopal are presently under judicial remand and lodged in the Chanchalguda jail in Hyderabad.

The chargesheet further says that Reddys entered into a criminal conspiracy with public servants including late Linga Reddy, Rajagopal, suspended IAS officer and then secretary
(Industries and Commerce department) Y Srilakshmi; and ensured that the mining leases for area of 68.5 hectares and 39.5 hectare were granted to OMC.

Reddy's application was processed unduly fast by the Industries and Commerce department, it says.

The Reddys passed off the ore excavated illegally in Karnataka as the product of OMCPL after transporting the ore with the permits obtained in Anantapur for AGK Mines, the CBI alleges, adding "the actual excavated iron ore within 68.5 hectares was only 40,387 tons."

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