The massive report of the Lokayukta on illegal mining makes copious references to the Reddy brothers, and how their writ ran in Bellary, leading to a complete “collapse of administration” in the district that he calls the “Republic of Bellary”.
Several chapters describe how the Reddy brothers used political muscle power, manipulation and corrupt practices to make phenomenal profits out of iron ore. Lokayukta N. Santosh Hegde writes that the Minister in-charge of Bellary district (Janardhan Reddy) had “manipulated his power” and indulged in illegal mining, through companies and firms of which he was director or partner.
“The system and officials were used by the Minister to the personal advantage of himself and his family.”
An entire chapter is devoted to the illegalities committed by the Associated Mining Company (AMC), in which Mr. Janardhan Reddy and his family had a stake.
The Lokayukta described the company as “a pool of irregularities”. Elsewhere, there is a description of the various methods adopted by the Obulapuram Mining Company: under-invoicing, evasion of taxes and other duties, and the links of Mr. Janardhan Reddy's companies in tax havens such as Virgin Islands and the Isle of Man.
Transactions
Uncovering the layers of the bank transactions relating to a Hospet-based company, Sri Bhaktha Markandeshwara Minerals, the Lokayukta found that it acted as a benami entity that had bank transactions with many companies that were engaged in illegal mining.
The investigation found that the money trail led to the accounts of “G.J. Reddy Sir” (Bellary Risk Amount)”.
Elsewhere in the report, the Lokayukta uses the term “risk amount” as a thinly-veiled description of extortion in the mining business.
The Lokayukta also discovered that the AMC supplied 3.04 lakh tonnes of “illegally” extracted ore to JSW, even though its lease had expired.
Mr. Janardhan Reddy also perfected what came to be called “zero risk system”, an elaborate profit sharing mechanism that involved government officials and other mine owners, but which posed no risk to him.
Those who did not oblige, were refused transport permits. The Lokayukta notes that no official dared question him, often obliging him out of fear.
U.V. Singh threatened
Illustrating how the intimidation tactic of the Reddy brothers did not spare the top-most officials, the Lokayukta narrates an incident involving his chief investigating officer U.V. Singh and Somashekhara Reddy, MLA and brother of Mr. Janardhan Reddy.
When Mr. Singh went to Bellary in September 2009 for an investigation, he was asked by Mr. Somashekhara “whether he had taken permission of the Minister in-charge of Bellary” to enter the district. Mr. Singh replied that “as a citizen of India, he does not require anybody's permission to visit Bellary”.
“The facts narrated herein above clearly shows that the administration in Bellary has totally collapsed. Sadly, the person in the helm of affairs of administration in Karnataka reportedly pleaded helpless,” says the report.
Lokayukta recommends that “in view of the misconduct”, Mr. Janardhan Reddy be removed from the Cabinet.
Keywords: Karnataka, Lokayukta, Illegal mining, Santosh Hegde, Reddy brothers
Definitely these guys Mr Hegde and team are the few best efficient people in India who dared to bring out the mind blowing facts about the highly corrupted politicians and I hope the efforts would translate into Sevier punishment to the culprits.
Despite of all these facts, If our Indian Constitution/Judicial system fail to punish them, then I would declare myself that there is no constitutional system in our country and there is no point in living honestly in this country.
Very Surprised India is still intact... Where is the patriotisim.. Where is the Nationalism... Where is the democracy.. In TN they buy votes for money .. In Karnataka they buy Govts with money... there are a few like Anna, Santosh and Singh that carry the light of hope for the billions ...I pray it should glow .. ?? - By the way Hindu is not a crusader against Corruption... They just report ... :)
It is some ray of hope that judiciary has stepped in to protect the natural resources and wealth of the country. It is the duty of the govt. of the day to protect and use the resources for the good of the people. But unscrouplous people are entering the govt. and appropriating the resources to themselves.It might be that the output of these also go into bloating the GDP growth rates,but which result in no benefit to the people of the country.
The case of Reddy brothers is not an isolated case. Such things are going on throughout the country. We read in papers these days that the High court of AP has ordered a preliminary enquiry into the financial activities of Y.S.Jagan Mohan Reddy son of late Chief Minister of AP. It is essential that as soon as these activities come to light, that all their properties-legal,illegal and benami-are confiscated so that they do not use that to extricate themselves unlawfully from these cases.Will the govt.s now protect the resources of the country.
Surprising that the Bellary Reddys are still in the Gaddi in the besotted Karnataka. Do they hold the BJP Leadership in thrall? They may, with their muscle power, money power and mind power. One 'Reddy Sir' has even threatened the Lokayukta. Man, come down the Gaddi and wait for Court trial. .
Mr.Yeddyurappa has to get down from the seat, he has involed in illegal mining and how same for him being in his seat holding at CM position he has lotted the natrual sources of the karnataka along with the Reddy Brothers and after declaring himselt to ban on export he himself and exported the mines to other counteries. My request to Yeddyurappa is to resign immediately and give up CM incharge/position to other without delay.
Only tax reform will solve this issue. Abolish all taxes. Introduce TURN OVER TAX i.e., all remittances in a bank has to be deducted compulsorily. No more tax return. Illegal money will vanish. Then, Reddy brothers has nothing to defy the law. The Reports and commission to unearth will never solve the problems. 'Frustrated Indian Layman 2010 eBook Amazon deals the reforms needed.
Yediyurappa has gone. But about the mining mafia and its octopus hold on the politics of Karnataka. It was amusing to see one of the Reddy Brothers claiming to be a constitutional authority and threatening legal action against the LokAyukta's report. They are major evils. It is time their power over the natural resources and more importantly on the state and its constitutional functioning if rich corporates stifle parliamentary democracy. Who knows instead of 'Y' some other 'Z' CM are in their clutches. Sadly, it may also so happen that with the immediate political objective of UPA being achieved of dethroning a powerful BJP CM, their attention to the issues get reduced.
These guys are the real heroes and the ray of hope in this country. Thanks to Mr Hegde and Mr U V Singh for this attempt to bring some semblance of order in Karnataka's governance.
Excellent factual reporting by Hindu and it is hilarious that Mr Singh was asked whether he had permission to enter Bellary a part of India asking a Indian investigating officer for a pemit to entry.This is height of arrogance of corrupt politicians and officials how dare they question a Indian citizen.I once again admire of crusade by Hindu on corruption and their bold editorial at last yeddurappa is stepping down.Bring them all to justice and bring back peoples wealth stolen.
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