CBI arrests 2 officials in mining scam case

S Muthaiah and S P Raju accused of aiding illegal trade

The Central Bureau of Investigation (CBI) on Monday arrested former deputy conservator of forests (Bellary) S Muthaiah and former deputy director of mines and geology department (Hospet, Bellary) S P Raju in connection with an illegal mining case involving the Associated Mining Company (AMC).

The AMC is owned by former tourism minister Gali Janardhana Reddy and his wife Aruna.Muthaiah and Raju have been named accused number seven (A-7) and accused number 22 (A-22) in the case.

The CBI said in a statement said that it had registered a case against Janardhana and others under Sections 120-B, 420, 379, 409, 411, 427,   447, 468, 471, 477-A of the IPC; under Sections 13(2) read with 13(1)(d) of  the Prevention of Corruption Act, 1988; under Section 26 of Indian Forest Act, 1927 and under Section 21 read with Sections 4(1), 4(1)(A) & 23 of  the Mines and Minerals (Development and Regulation) Act, 1957.

“The case was registered on the allegation about certain illegalities committed by various persons in the matter of mining lease number 2434 of AMC,” a source in the CBI said.

Muthaiah, under suspension, is the Conservator of Forests (Research), Dharwad now, while Raju has retired. Both of them were produced before the 47th Additional City Civil and Sessions Judge and Special Judge for CBI cases, who remanded them to police custody for 10 days.

The CBI was probing the involvement of Muthaiah in illegal mining while he was deputy conservator of forests at Bellary during 2005-2007 and 2008-2010. This was after the special investigation team that probed into illegal mining in Karnataka indicted him.

He is also accused of having allegedly allowed illegal mining to go on in the forest areas. “He had even permitted transportation of illegally mined ore,” a source said.

The CBI had seized several documents from the premises of Muthaiah after a raid late last year. A six-member CBI team led by DySP Prakash K and inspector Nagaraj had conducted simultaneous raids on Muthaiah’s office, quarters and the Forest Training Institute located at Gungurghatta, 15 km from Dharwad, in October last year.