.

The committee has observed that the OMC, owned by the Reddys, had encroached upon mining lease area of other companies.

However, the CM does not find any reason to take action against the Reddys in his Cabinet. On Saturday, he told the media, “I have not gone through the copy of the CEC report. I will react to it after I go through it.”

Asked if he would refer the matter to CBI, he said the situation did not warrant CBI inquiry. He defended his stand stating that even in the past many governments had faced similar situations but nobody referred the matter to the CBI.

To a query whether if he would discuss the issue in the BJP coordination committee, he replied he would talk to senior leaders of the party over the issue. After a volley of questions why he was not taking action against the Reddys, he said, “The time to act against them has not yet come. Wait and see.”

The CM may not dare to do anything now barring defending or maintaining silence over the Bellary mining as well as the Reddys. Because he has learnt a bitter lesson by challenging and antagonising the mining tycoons and ministers Janardhana Reddy and Karunakara Reddy. The CM transferred the top bureaucrats of Bellary and got into a major trouble. He had to move heaven and earth to save his gaddi.

Sources in the BJP say that the CM is 'indebted' to the Reddys for various reasons including conducting ‘Operation Lotus’ and ‘managing’ the series of elections the State witnessed over the last one-and-half years. Also, the CM is aware that the Reddys have at least 40 MLAs with them.