Mining: CEC report indictes Reddy brothers

The report of the apex court-appointed Central Empowered Committee (CEC) noted that Janardhan Reddy's AMC (Associated Mining Company) had illegally done mining operation during 1996-2000 in which its lease had expired and there were irregularities in its renewal.

The CEC said even the renewal of the lease, which was done in the year 2003 and retrospectively applied from 2000, was illegal.

To gain full control of the AMC, Reddy adopted dubious means, CEC said in the report which is based on findings of the Joint team, constituted in pursuance of May 6, 2011 order of the apex court for carrying out survey work and demarcation of 99 mining leases in Bellary, Chitradurga and Tumkur.

"The said mining lease (of AMC) was effectively transferred to Janardhan Reddy, the then Tourism Minster, and Minister incharge of District Bellary and G Lakshmi Aruna with effect from August 1, 2009. This, it appears, was done by adopting dubious means to get themselves admitted as new partners and ensuring the retirement of all the existing partners on the firm," the report said.

The CEC annexed with its report a letter by state-owned National Mineral Development Corporation (NMDC), which said Deccan Mining Syndicate (DMS), owned by another mining baron S M Jain, had encroached upon its mining areas for which it had made complaints before police, Department of Mines and Geology, Revenue Department and other authorities of Karnataka Government.

NMDC also said that in regard to a complaint made by it against DMS before the police, the words "lodging an FIR" was struck out by replacing with "take and action".
The report states that "massive illegal mining" was being done by third parties with regard to the two mining leases of state-owned NMDC.

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