Only Reddys can give information about illegal mining: CBI

The prosecution alleged OMC was indulging in illegal mining ore extraction from several locations,including Karnataka,and exporting it to China,Singapore and Malaysia.

“Mining and extraction of 29.30 lakh tonnes of iron-ore was done in several areas other than the leased area of 68.5 hectares held by OMC as the mineral ore in Antargangamma Konda mines,owned by OMC,was not of commercial quality,” he said.

“The custodial interrogation of the accused will bring out the names of the public servants with whom they conspired to get the lease of 68.5 hectares of land in Obulapuram and

the extent of bribe given to carry out illegal mining,” CBI counsel said,adding Janardhana Reddy was an influential person,and fearing him,nobody was coming forward to give information to CBI.

The hearing will continue on September 12. The investigating agency has sought a 15-day custody of the duo. Janardhana Reddy applied for leases and the agreements were signed by Srinivas Reddy. There was no MD for the company till CBI registered the case and it was only on December 12,2009 that the company fraudulently submitted documents to Registrar of Companies on appointment of Srinivas Reddy as the Managing Director,he said.

“It is through the custodial interrogation we want to know why Reddy has not mined in his own OMC field…OMC illegally brought iron ore extracted in other areas which was shown as if it was excavated from the leased area of 68.5 hectares,” the CBI counsel said.

CBI had obtained satellite images that showed there was no major mining activity in the alloted land from 2007 to March 2010. However,benches (working sites) appeared in the land April 2010 onwards,he added.

Opposing the bail pleas of the two accused,the CBI counsel said they may flee to foreign countries.

The defence counsels Uday Lalit and C V Nagesh argued that the agency did not produce any material evidence before the court with regard to the alleged conspiracy for grant of leases and land.

The CBI investigation into the alleged illegal mining is interlinked with the boundary dispute (of Andhra Pradesh and Karnataka) and the matter is being heard by the Supreme Court,the defence counsels contended.