CEC report biased, says Reddy, Can't act now says CM

Reddy's charge came at a hurriedly called press conference here after he came under fresh attack from Opposition over a Supreme Court appointed committee indicting companies owned by him and his brother Karunakara Reddy for illegal mining.

"The Centre has launched a vindictive action against us after the death of Rajasekhara Reddy," he claimed alleging a conspiracy to "finish us and also Jagan" with whom he has business links. The Reddy brothers were known for their reported proximity to the family of Rajasekhara Reddy months after whose death Jaganmohan Reddy deserted the Congress after unsuccessful bid to succeed his father.

Reddy dubbed the panel report, submitted to the apex court today, as "biased" and "prejudiced" and alleged "it had been compiled under pressure." Reddy said, "there is a political hand behind this CEC report. I will disclose the name of this political power in a couple of days".

The Reddy brothers have been facing opposition heat in Karnataka for their alleged involvement in illegal mining in Bellary District over which the Congress staged a padayatra last year. The SC-appointed committee had recommended cancellation of mining lease to the Reddy brothers' firms in Andhra Pradesh, saying their Obulapuram Mining Company had openly flouted various environmental laws in mining operations and also indulged in illegal mining beyond approved area.

The high-powered panel recommended cancellation of the lease to four different mines spread over 140 acres on grounds of among others, large scale illegal mining in Karnataka's Bellary Reserve Forest area.

As the Opposition Congress and JDS upped their ante demanding the immediate resignation of Reddy brothers from the ministry, Chief Minister B S Yeddyurappa turned it down saying "how can there be an action before the Supreme Court verdict?"

Yeddyurappa initially refused to react to the CEC report saying "I don't know the details. I will comment on the report after Supreme Court takes a final decision." Opposition Congress leader Siddaramaiah, KPCC president G Parameshwara and JDS leader H D Kumarswamy demanded that Yeddyurappa and Reddy brothers resign.

Congress spokesman V S Ugrappa alleged the mining companies owned by Reddy brothers had caused a loss of Rs 3,154 crore to the state exchequer by their illegal mining from 2005-06 to 2009-10. "The chief minister is protecting these ministers probably because he got an indirect share from them," Ugrappa charged.