CBI arrests Janardhan ‘Illegal Mining’ Reddy

Janardhan and Srinavasa Reddy’s arrest followed the CBI probe ordered by the K Rosaiah government of Andhra Pradesh into allegations of corruption in giving mining leases to OMC. The probe was ordered in December 2009 soon after the death of YSR Rajasekhara Reddy,who was considered a major benefactor of the Bellary brothers.

A Special CBI court sent the two in 14 days’ judicial custody. The CBI’s plea for their custody will be heard on Wednesday.

The CBI brief was to probe “boundary disputes,illegal mining activities and other related offenses of M/s Obulapuram Mining Company Pvt Ltd and M/s Bellary Iron Ore Pvt Ltd in the Bellary Reserve Forest of Anantapur district (AP) and attempts,abetment and conspiracies in relation to or in connection with the offenses relating to illegal activities”.

Janardhan Reddy,his family members and associates have been directors of OMC. The Karnataka Lokayukta report on illegal mining in Karnataka,which also looked at the export activities of OMC,had in its report recommended action against all directors of the company for being party to the under invoicing of iron ore exports to the tune of Rs 215.12 crore during 2008-09.

The report also found that Janardhan Reddy was an integral part of a mining mafia in Karnataka that smuggled Rs 1,829 crore worth of iron ore out of the country through various ports in south India,including Krishnapatnam and Kakinada in Andhra Pradesh during the year 2009-10.

Srinivasa Reddy has been named in the Lokayukta report as running Sri Basaveshwara Minerals and Sri Minerals that exported large quantities of illegally obtained iron ore in Karnataka as front companies.

After arresting the duo in Bellary,the CBI decided to take them to its Hyderabad office by road despite the 500-km distance to avoid security issues at airports. They made only one halt for breakfast near Mahabubnagar.

A CBI statement said that during searches,Rs 3 crore was recovered from Janardhan Reddy’s house in cash,apart from more than 30 kg of gold. In Srinivas Reddy’s house,the CBI reportedly found Rs 1.5 crore in cash. Searches were also carried out on the premises of their associates in Bangalore and Bellary.

CBI,Hyderabad Zone,Joint Director V V Lakshminarayana said the two were charged with criminal conspiracy,cheating,theft,dishonestly receiving stolen property,trespassing as well as under the Prevention of Corruption Act,Forests Protection Act and Mines and Minerals Act.

“We are questioning people and collecting evidence. There may be more arrests,” Lakshminarayana said.

Seeking bail,Janardhan Reddy’s lawyer told the Special CBI Court that the FIR filed by the CBI did not mention Janardhan Reddy,he was never called for questioning,and there was no arrest warrant issued.

The counsel argued that just because Reddy had recently been removed from the Karnataka Cabinet,he was being targeted. He stated that Reddy was a law-abiding citizen,paid his taxes,was respected and would cooperate fully with the investigation.

The counsel also argued that Reddy was only one of the directors of OMC and his role was inactive. He said the case of illegal mining was against OMC,which was represented by Srinivas Reddy.