The state government on Tuesday decided to conduct a CBI probe into the alleged irregularities in mining operations in Anantapur district.
The Chief Minister, Mr K. Rosaiah, consulted the Congress central leadership, his key aides and the chief secretary, Mr P. Ramakanth Reddy, before deciding on a CBI probe.
Sources said the Kadapa MP, Mr Y.S. Jagan Mohan Reddy, was also informed of the decision before it was made public.
Mr Jagan Mohan Reddy, who has been charged by the Opposition of having a nexus with the Gali brothers running the Obulapuram Mining Company, welcomed the probe and said it would put all the allegations at rest.
“I did not receive a single rupee from OMC as they allege,” he told mediapersons and dismissed the whole controversy as a dispute between two private firms.
It was the Telugu Desam that first demanded a CBI probe and the Chief Minister’s decision is meant to take the wind from the Opposition’s sails. Sources said the Congress high command was wary of the TD and the Left trying to turn the OMC controversy into a national issue.
“It is also unhappy over the allegations that the Congress government is protecting a BJP minister,” sources pointed out.
The comprehensive probe will look into the activities of the six mining companies in the area. Mr Gali Janardhan Reddy owns four mining companies including Anantapur Mining Company and it is also learnt that the YM mining company has also been sub-leased to him.
His competitor, Mr S.K. Modi, who runs the Bellary Iron Ore Company in 27.12 hectares adjacent to OMC, has accused Mr Janardhan Reddy of illegally encroaching 0.225 hectares belonging to him. OMC, in turn, has accused BIOP of encroachin g upon 2.74 hectares of its land.
Mr Reddy is also facing accusations of illegally constructing a road from OMC land to Karnataka, of demolishing boundary pillars between H. Siddapuram and Obulapuram villages and illegally import and export of iron ore.
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