CBI files case against Reddy firm, conducts raids

October 3rd, 2011 - 9:44 pm ICT by IANS  

Bharatiya Janata Party Bangalore, Oct 3 (IANS) The Central Bureau of Investigation (CBI) Monday registered its first case in Karnataka against a firm of mining baron and former state minister G. Janardhan Reddy, raiding also his house at Bellary as well as those of other mining firm proprietors, officials and a Bharatiya Janata Party (BJP) legislator.

“On the orders of the Supreme Court, our anti-corruption branch registered a regular case against Associated Mining Company (AMC) of Gali Janardhan Reddy under the Indian Penal Code (IPC), Prevention of Corruption Act, Indian Forest Act and MMDR (Mining & Mineral Development Regulation) Act,” the CBI said in a statement here.

The case against the Bellary-based AMC has been registered after the apex court Sep 23 asked the CBI to probe the linkage between the multi-crore-rupee illegal mining in Bellary district and Anantapur district in Andhra Pradesh, allegedly involving the Reddy brothers, including former state revenue minister G. Karunakara Reddy.

Investigations so far revealed that iron ore mined by AMC was routed through Obalapuram Mining Company (OMC), also owned by the Reddy brothers, at Anantapur.

The CBI also registered a case against Deccan Mining Syndicate of S.M. Jain, based in Bellary, as it was allegedly involved in routing its iron ore through Reddys’ OMC.

“Searches are being conducted at the residences of Janaradhan Reddy, then deputy conservator of forests, then director of the state mines and geology department, proprietors/directors of other associated mining firms in Bangalore, Bellary, Dharwad, Davangere and Chitradurga across the state,” the statement said.

Raids were also conducted at the Bellary residence of B. Nagendra, a BJP lawmaker from Kudligi in Bellary district, offices of AMC and offices of Deccan Mining Syndicate.

“The searches are still going on while the incriminating documents seized will be scrutinised,” the statement added.

Janardhan Reddy, who was tourism minister in the BJP’s first government in the state, was arrested along with OMC managing director B.V. Srinivas Reddy, Sep 5 at Bellary on charges of illegal mining in Andhra Pradesh and taken to Hyderabad for further investigations.

Both the accused have been in Hyderabad’s Chanchalaguda jail since then except for a week in CBI custody for interrogation.

Their judicial custody was Monday extended till Oct 17.

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