Andhra HC stays CBI probe in 'illegal' mining case

The Andhra Pradesh high court on Monday stayed a Central Bureau of Investigation's inquiry into the alleged illegal mining by the Obulapuram Mining Company, owned by Karnataka Tourism Minister G Janardhan Reddy and his family.

Disposing a petition filed by the OMC, a division bench of Chief Justice A R Dave and Justice C V Nagarjuna Reddy stayed the probe by the central agency.

The company moved the high court alleging that the Andhra Pradesh government had ordered the CBI probe into the mining operations carried out by the OMC on political considerations rather than unearthing illegalities.

OMC further alleged that despite its cooperation, CBI authorities were giving negative publicity to its operations.

"The terms of reference of the CBI are far beyond the scope of inquiry and the CBI probe is resulting in day-to-day interference with their operations," the OMC petition said.

The Andhra Pradesh government on November 17 ordered the CBI probe following recommendation of a three-member committee constituted by Chief Minister K Rosaiah to look into the allegations by the opposition parties about the illegal activities of the mining company.

The Central agency, as part of its inquiry, conducted simultaneous searches at the offices and residence of Janardhan Reddy, a Bharatiya Janata Party leader, in Karnataka on December 10.

On Friday last, the OMC and Anantapur Mining Corporation, also owned by the Karnataka minister, got interim relief from the high court, which suspended the Central and state governments' orders restraining all mining activities involving extraction of iron ore in Anantapur district.

Meanwhile, Karnataka Chief Minister B S Yeddyurappa slammed the opposition for its allegations of illegal mining against OMC owned by Tourism Minister Janardhana Reddy, asking them to substantiate their charges.

"If they have any documents with regard to illegal mining, let them (opposition) make it public", he told reporters while canvassing for BJP candidate G H Thippareddy for the coming elections to the Legislative Council here.

"There is no need to give importance to such baseless allegations", Yeddyurappa said.

The Andhra Pradesh HC had recently suspended operation of the state government's GO, prohibiting alleged illegal mining by the OMC.

Yeddyurappa said the state government had informed the Centre that it needed  Rs 6,000 crore to take up flood-relief works in the state. "The Centre, which has already released Rs 500 crore, has assured that more funds would be released soon", he said.