AP High Court quashes order suspending mining

However, the court has directed the company not to mine in 40 metres towards the Karnataka boundary and furnish a bank guarantee for the entire ore stock of 1.95 lakh tonnes said to be in the mining lease area.

The judgement came as a relief to Ministers Janardhana Reddy and Karunakara Reddy, who own OMC. Soon after the announcement of the judgement, company officials began mining operations after performing a “pooja”. The CBI on Friday continued examination of OMC documents in Bellary. The agency had raided the office of the mining company on Thursday. However, the operation on the second day was confined to OMC.

“The CBI officials examined the documents till night. We have furnished the documents they sought. We are legally right,” legal advisor to OMC and Rayadurga legislator Ramachandra Reddy said.

The AP Government had suspended mining activities by the company through a government order on November 25, following a Central Empowered Committee proposal.
The order also prohibited lifting of the extracted ore in the mining lease area. The division bench comprising Chief Justice Anil R Dave and Justice C V Nagarjuna Reddy, in its judgement said: “The action of the government prima facie appears to have been taken without proper application of mind and in a hasty manner.”