The Central Bureau of Investigation (CBI) has alleged that the then Director of Mines & Geology V.D. Rajagopal had adopted dubious methods for granting limestone mining licence in an extent of 407.05 hectare to Jaya Minerals in July 2006 in gross violation of Mineral Concession Rules.
But for his indulgence in the “criminal conspiracy” in association with other key accused in the case Mr. Rajagopal would have rejected the incomplete application made by Jaya Minerals in December 1997, the CBI said in its findings of investigation into the Dalmia Cement aspect of the quid-pro-quo investments case.
Another application made by the same company in April 1999 for prospecting license in an extent of 520 ha was rejected under the same rules, the CBI stated.
The investigating agency alleged that Eswar Cements had created a pre-dated (April 1998) partnership deed with Jaya Minerals in 2004 and sought prospecting mining license in its name stating that it had taken over Jaya Minerals.
Similarly, Puneet Dalmia of Dalmia Cement had entered into a memorandum of understanding with Sajjala Diwakar Reddy of Eswar Cements in April 2006 with the condition that Eswar Cements should acquire prospecting licence within three months in their names and subsequently transfer the mining license it to Dalmia Cement.
The CBI alleged that neither the then Secretary (Industries) Y. Srilakshmi nor the then Minister for Mines & Geology went into the merits of the case independents and gave their approval knowing well that such conditional transfer was not authorised under the Mineral Concession Rules.
Dalmia Cement, in turn, had made Rs. 95 crore investments in companies controlled or owned by Kadapa MP Y.S. Jaganmohan Reddy, who in conspiracy with his father had influenced the administration to help the company, the CBI said.
