SME Times News Bureau | 11 Nov, 2009
The Andhra Pradesh government on Tuesday ordered a probe into the alleged irregularities by the Obulapuram Mining Corporation (OMC) owned by Karnataka Tourism Minister G. Janardhana Reddy.
Chief Minister K. Rosaiah has constituted a three-member committee to probe the allegations. The committee has been asked to submit its report in 10 days.
The probe was ordered following a demand from the Telugu Desam Party (TDP) and other opposition parties for a comprehensive inquiry into allegations that OMC illegally shifted iron ore worth Rs.5 billion from Karnataka to Andhra Pradesh.
A few days ago a forest official in Anantapur district of Andhra Pradesh served notice on OMC for various irregularities. This was the fifth notice served on the firm since Oct 26.
The notices pertain to complaints of illegal mining, encroachment of reserve forest area as well as other companies' mining areas, construction of illegal roads in the forests and transporting ore in violation of the permits.
"A three-member committee of senior officials of the forest department would visit the OMC and other iron-ore mines in the Bellary Reserve Forest of Anantapur district, and submit its detailed report within 10 days on all the allegations raised in media reports and representations," said a statement from the Chief Minister's Office.
The decision was taken at a meeting the chief minister held with senior officials of the forest and industries departments.
The industries department would also depute senior officials to look into various aspects pertaining to irregularities alleged in mining operations and submit report within 10 days, said the statement.
This is the first time that the Andhra Pradesh government has ordered a probe against the mining interests of the powerful Reddy brothers, who almost pulled down the Bharatiya Janata Party (BJP) government in Karnataka last week with their rebelion against Chief Minister B.S. Yeddyurappa.
The authorities in Andhra Pradesh started tightening the screws on OMC following the death of then Chief Minister Y.S. Rajasekhara Reddy in a helicopter crash Sep 2.
Rajasekhara Reddy was considered close to Janardhana Reddy and his brothers and the two families share business interests.
Anantapur divisional forest officer (DFO) Kallol Biswas issued notice Nov 1 asking OMC to explain why the iron ore mined outside the lease area was being illegally transported from Karnataka to Andhra Pradesh using unauthorised roads.
The official claimed that the company destroyed the boundary pillars between the mining lease areas between the two states for this illegal activity.
The opposition parties in Andhra Pradesh were targeting Rajasekhara Reddy's government for extending the mining lease of OMC and allowing it to indulge in irregularities.
TDP president N. Chandrababu Naidu has demanded that the mining licence of OMC be cancelled. He alleged that the illegal mining by the firm caused huge losses to the state during the last five years.
