DHNS reported that decks have been cleared for a CBI probe into the allegations of illegal mining of iron ore by a company owned by the Reddy brothers of Bellary, who are ministers in the BJP government in Karnataka.

A division bench of the Andhra Pradesh High Court set aside on Thursday the earlier stay imposed on the agency against probing into the mining operations through an order of a single judge Bench of the same court.

The earlier stay on the CBI probe was granted on the ground that the Supreme Court was looking into the matter, a point stressed by OMC counsel Mr Mukul Rohatgi. But additional solicitor general Mr Vivek Tanka, representing the CBI, told the two judge bench that the apex court is mainly looking into the border dispute between Karnataka and Andhra and not the illegal mining.

Mr Tanka said the OMC carried out illegal mining elsewhere and showed the mineral as having been extracted from its leasehold area, the Anthara-Gangamma-Konda mines. He alleged that several officials of the forest, transport and industries departments in both Karnataka and Andhra were in collusion with the company and had been issuing it illegal transport permits.

The court order will empower the CBI to look into aspects of not only the illegal mining in areas not leased to the Obulapuram Mining Company owned by Mr G Karunakara Reddy and Mr Janardhana Reddy but also probe evasion of royalty, road tax and other revenues to the state exchequer to the tune of INR 3,200 crore.

The judgment was pronounced by the Bench of Chief Justice Nisar Ahmad Kakru and Justice Vilas V Afzalpurkar.

One of the charges against the OMC is that it had removed border posts near its mines so it could transport ore from one state to another without paying cess.

(Sourced from DHNS)