Here is why the Karnataka mining case worth Rs 35,000 crore is falling apart


There may be no logical conclusion to the illegal mining case worth Rs 35,000 crore unearthed in Karnataka. It appears as though there would be a quietus of burial in these cases involving former Karnataka BJP minister Janardhan Reddy and others.

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Return of the tainted- All parties are the same

exchequeThe return of B S Yeddyurappa to the BJP and the inclusion of D K Shivakumar and Roshan Baig into the Congress cabinet in Karnataka has not gone down too well with anti corruption activists in the state.

Justice Santhosh Hegde whose report on illegal mining forced Yeddyurappa to step down as Chief Minister says that when it comes to the issue of corruption all political parties are the same.

Such actions only go on to show the honesty of political parties, he tells

Continue reading “Return of the tainted- All parties are the same”

Money laundering- FIU has it hands full


With the Financial Intelligence Unit deciding to probe three major banks for alleged money laundering, it would be interesting to note that the same agency also conducted a probe in the HSBC money laundering case.

The decision to probe three major banks, HDFC, ICICI and Axis come in the wake of a sting operation by Cobrapost in which there were clops of officials allegedly agreeing to receive unverified amounts of money in violation of the money laundering laws.

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Illegal mining-losses between Rs 20k to 30k crore

Mining in Bellary
Mining in Bellary

Illegal mining in Karnataka is a matter that is being investigated by many agencies and the losses that each of these agencies have estimated is shocking in number. The latest is a report by the Comptroller and Auditor General (CAG) of India which has estimated the loss caused due to illegal mining at Rs 3414 crore and ironically the state government has been able to recover just Rs 7.22 crore. However according to Anita Pattanayak, Principal Accountant General (Audit) of the CAG, Karnataka, “ if one goes by the current value of ore then the loss can be at an estimated Rs 25000 crore. The current market value of iron ore is at Rs 4800 per metric tonne.

The report of the CAG between the years 2006 and 2011 was put out before the Karnataka legislative assembly. The losses which are mentioned in the report are as per the market value of iron ore in those respective years. However if one takes into account the value of ore today, then the loss is at Rs 25000 crore. Continue reading “Illegal mining-losses between Rs 20k to 30k crore”

Illegal mining horror in Goa-The complete report

The mining scam had first rocked Karnataka and then Goa. While the mess in Karnataka is well known, the scenario in Goa is no different. The Central Empowered Committee in its interim report on illegal mining in Goa has found various illegalities and its detailed report a copy of which is with gives a horrific picture of how brazenly illegal mining took place in Goa.

In brief the CEC has this to say:

Mining operations in Goa have violated with impunity the relevant Acts, Rules and Regulations. The environmental clearances, in a large number of cases, have been accorded for the mining leases located within 1 km of the National Park / Sanctuary and which are in violation. Continue reading “Illegal mining horror in Goa-The complete report”

Reddy to contest polls even as scam touches Rs 7000 crore

The Bellary mining scam today is estimated at around Rs 7000 crore and it is one of the biggest scams that the country has ever seen. While at the start of the investigation, the Central Bureau of Investigation estimated the scam to be around Rs 5000 crore, it appears that the numbers are only growing with the investigation progressing.

The latest on the investigation is by the Enforcement Directorate which has attached shares belonging to Janardhan Reddy, the former minister of Karnataka. The share value has been totaled at Rs 884 crore and the same has been attached under the Prevention of Money Laundering Act. During the investigations, the ED found that there were 884130000 shares in all and each had the value of Rs 10 amounting to Rs 884.13 crore. All these shares belonged to the Brahmani Industries Limited and were held by the Obulapuram Mining Company which belonged to Janardhan Reddy and his associates.

Continue reading “Reddy to contest polls even as scam touches Rs 7000 crore”

Yeddy got kick back of Rs 40 crore in illegal mining

B S Yeddyurappa and sons got a kick back of Rs 40 crore to facilitate mining barons, Jindal Steels in the illegal mining case, the Central Bureau of Investigation has stated in its chargesheet filed today. The CBI which is probing the illegal mining case against Yeddyurappa at the behest of the Supreme Court has named Yeddyurappa as the main accused in the case.
The CBI first filed a report before the Supreme Court and subsequently a chargesheet before the CBI court in Bangalore. It has named in all 13 accused in the case. Yeddyurappa is the main accused while his sons and son in law are named. In addition to this the chargesheet names Jinda, Krishnaiah Shetty, Prerna Trust and others in the case. Continue reading “Yeddy got kick back of Rs 40 crore in illegal mining”

CBI finds Rs 2500 cr illegal ore

The Central Bureau of investigation is conducting raids across Karnataka and Goa in connection with illegal mining. The CBI is conducting raids after it found that ore was being illegally excavated to the tune if Rs 2500 crore.
CBI sources say that they have information that 50 lakh metric tones of ore has been mined in various parts of the state and the value of the same is Rs 2500 crore. The raids are being conducted at Karwar, Hospet and also Goa.
There are 8 teams in all conducting the raids and it has been also found that ore was illegally transported through the Bilikere port.
The CBI which is acting as per the directives of the Supreme Court has registered 5 cases in all against various firms.

CBI summons Sriramulu

The Central Bureau of Investigation summoned B Sriramulu, Karnataka MLA in connection with the cash for bai scam. He would now be questioned by the an corruption bureau of the CBI at Hyderabad.

B Sriramulu a close aid of the Bellary Reddy brothers was named in the scam by Suresh Babu another accused in the case.

Babu had told the CBI that when the deal with the judge to get Janardhan Reddy bail was being planned B Sriramulu was kept in the loop.

He also said that Sriramulu had suggested ways of getting the bail done after paying of the judge.
CBI sources say that  Sriramulu is indirectly connected with the case and wheather or not tomake him an accused would be decided once questioning is completed.

Bellary- the fall of a republic


It was one of the most spoken about places in the past couple of years. It had even been termed as the Republic of Bellary however not in the positive sense. The Reddy brothers over there were a symbol of money and aggression and the Bharatiya Janata Party in Karnataka had become completely subservient to their diktat. Fancy cars, choppers, crime and money in abundance was once the picture that one got to see of Bellary. However today all that has changed and it is quiet with the arrest of two of the Reddy brothers.

The arrest of Somashekhara Reddy by the Central Bureau of Investigation yesterday was probably the final straw for the once powerful Reddy brothers. He was picked up on charges of trying to buy bail for his brother Janardhan Reddy who was earlier arrested in connection with the illegal mining case.

With two Reddys behind bars today, the strength of this clan is down to literally nothing. While Janardhan Reddy and Somashekhar Reddy are both behind bars, the only one remaining is Karunakara Reddy. There is also Sriramulu one of the closest aides of the Reddy brothers who had come out of the BJP to float his new party.

There was a time when these men from Bellary could easily pull out 40 MLAs from the BJP and threaten to bring down the government. They had the monetary power to do so and there was also a never ending flow of cash which was generated through mining.

The Reddy brothers had pinned their hopes their hopes on Sriramulu who had contested and won the Bellary by-elections by a thumping majority. However he appears to be cornered now with the arrest of both the Reddy brothers. Moreover his name has figured in the cash for bail scam. The CBI is now looking to question him with regard to this case and this has made him go quiet a great deal. In addition to this there are a host of other cases and the most important one being the illegal mining case in which his name figures. Hence he too realises that too much aggression will only land him in more trouble.

The other brother, Karunakar Reddy is playing it extremely safe. Although it is no secret that he supports BJP rebel, Sriramulu, he has decided to play it safe and stay within the BJP. He does realise that he desperately needs to cling on to power and hence has very quietly remained in the Karnataka BJP which rules the state of Karnataka.

Adding to the worries of the Bellary folk is the ban on illegal mining. Their income is under a lot of scrutiny and the Supreme Court has taken a personal interest in this case. Hence every movement of money and any sort of illegal mining activity could land them in more trouble.

The people of Bellary say that the much required peace and calm has finally returned. There was a sort of lawlessness in this city, but with the Reddy brothers in the dock there is this much deserved calm in Bellary.

Justice Santhosh Hegde who had exposed the Reddy brothers in his mining report says that one could say that it is a fall of a republic. I had mentioned Bellary to be a politico geographic republic and these were the people who were the kingpins of this republic. Looking at how things are going now one could say that their kingdom is on the verge of a collapse.

However I must add that there was always illegal mining in Bellary even before these Reddys came into the picture. However when they appeared on the scene the international market picked up and this was known as the China boom. These brothers ofcourse took maximum advantage of the situation. They did make everything more aggressive and the chaos in Bellary thanks to them was like a river of no return.

Today when I look at what is happening to these people, I would say that the process of justice has just begun. The instrumentality of justice has commenced. However the real justice would be done when all these people are convicted in the mining scam.

Political experts say that the base that was set up by the Reddy brothers is in disarray at the moment. Their kingdom is falling and it is like a point of no return for them today.

It is a known fact that the Reddy brothers did play a huge role in helping the BJP come to power in the state. It is believed that their money power helped the BJP a great deal.

The question now is how does the fall of the Reddys in Bellary alter the chances of the BJP. For the past one and half decades, Bellary had become virtually a BJP bastion. Today that base is in disarray and cannot claim it to be their strong ground today. Ironically, no other party in Karnataka too has capitalised on this situation and made a pitch for Bellary. It is extremely difficult to point out what the results in Bellary during the next election would be.

Sources in the BJP point out that for the time being their main priority would be to complete their term. At this point in time having people like the Reddy brothers in full bloom would only have been an irritant. The BJP already has a lot of problems and the Reddy would have been another part of the problem.

Regarding bringing back Bellary, the BJP says that they will need to start the ground work right away. Our workers are on the field and should be able to produce results by the next elections. The BJP had got a drubbing at the hands of Sriramulu in the by elections. However they are hopeful that they could win the area back as Sriramulu is down today thanks to the various cases and also the fact that no other political party is doing any work in Bellary.

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