CBI's steely gaze will be on many MLAs

As many as 40 mining companies that had business contacts with Reddy’s Associated Mining Company (AMC) in Bellary, and a number of MLAs such as Kudligi MLA B Nagendra (whose name figures in the Lokayukta report), may be snared by the CBI dragnet.

The UV Singh report indicates that Reddy collected payments from mining companies using elected representatives as front men as also some mining companies.

As many as 30 companies were collecting hafta on behalf of Reddy. Owners of benami companies like Karapudi Mahesh, Swastik Nagaraj and Ali Khan have been identified by Income Tax authorities and Lokayukta investigators as key hafta collecting agents.

Currently, the CBI is investigating the alleged illegal mining by Obulapuram Mining Company (OMC) in Andhra Pradesh, and has for the first time taken up inquiry into OMC’s sister concern AMC and other benami companies operating for Reddy in Karnataka.  The Lokayukta had established that companies including Dream Logistics, SB Minerals, B R Yogendranath Singh Minerals, Minerals Embassy among others had business links with Reddy.

It has now to come to light that companies that had mushroomed overnight, like Devi Enterprises, (of which Ali Khan and V Chandrashekar were directors) Madhushri Enterprises run by Madhukar Verma, and Basaveshwara Minerals run by Srinivas Reddy – who is in CBI custody, were part of the illegal mining network operated by Janardhana Reddy.

The Central Bureau of Investigation team, which is set to begin its probe in Karnataka over the next few days, will also investigate officers who held key posts in Bellary and helped Reddy in his business directly or indirectly.

Jindal under scanner too

It has also come to light that AMC, instead of supplying iron ore to its sister concern OMC in Andhra Pradesh, had supplied it to Jindal Steels in Torangal. AMC had no government permit for 3,03,000 lakh tonne out of the 4,88,000 lakh tonne that it supplied to Jindal, making the latter liable to CBI scrutiny. Sources also said that the entire Belikeri port episode in which five lakh tonne iron ore went missing, will also be probed by the CBI.


Under Scanner

*CBI decides to extend probe into illegal mining, now focused on AP, to Bellary

*  40 mining firms having business contacts with Reddy’s AMC, and a number of MLAs may face the music

* Reddy reportedly collected payments from mining fir­ms using MLAs as front men

* 30 companies collected  hafta on behalf of Reddy