NEW DELHI: The Supreme Court on Friday issued notice to the Central Bureau of Investigation (CBI) and directed it to establish ‘linkage’ between the mining activities in Bellary district of Karnataka and Anantapur district of Andhra Pradesh.A bench comprising Chief Justice S H Kapadia, Justice Aftab Alam and Justice Swatanter Kumar, in a detailed order after about two hours of hearing, said an investigation by the CBI was needed as it was prima facie satisfied with the materials placed before it that the iron ore extracted by the two companies, viz., the Associated Mining Company (AMC) and the Deccan Mining Syndicate (DMS) was being illegally routed through Obulapuram in Andhra Pradesh.The Chief Justice, looking towards Attorney General (AG) Goolam Vahanvati said, “We want to know as to how much material has been siphoned off etc.At this, the AG said, “Tankha is appearing (in the case) in Andhra Pradesh.I will ask him to appear here.I will also be here.” The bench was again informed that the AMC was owned by BJP leader and former tourism minister of Karnataka Janardhan Reddy and his wife while the DMS was owned by another mining baron S M Jain.According to the report submitted by the Central Empowered Committee (CEC) the two companies were involved in the illegal mining in the leased area of 10.12 hectares in Jaisingapur village and there were irregularities in renewal of the lease.The bench noted that Reddy’s AMC was involved in a series of illegalities and the expert committee’s report of the CEC suggested that Reddy and his wife G Lakshmi Aruna seemed to have taken charge of the company (AMC) by “adopting dubious means to get themselves admitted as new partners and ensured retirement of all the existing partners of the firm.” The bench also asked the CBI to apprise it of the status of the investigation so far against the Reddy brothers’ Obulapuram Mining Company after the registration of the FIR and posted the matter to September 30.Chief Justice Kapadia passed the orders after perusing the report of September 21 submitted by the CEC on the survey and demarcation, e-auction and other issues relating to the mining leases in the districts of Bellary, Chitradurga and Tumkur in Karnataka.“Essentially this court is prima facie satisfied with the material placed before it about the linkage of mining in Bellary and mining in Anantapur district of Andhra Pradesh,” Justice Kapadia said.“We also prima facie found that the material (ore) extracted by the two companies, the AMC and the DMS is being routed through Obulapuram in Andhra Pradesh.It is for this reason that we are issuing notice to the CBI.We want the CBI to investigate this aspect of linkage,” Justice Kapadia clarified.At the same time, the bench asked the CEC to hear out the representations of the lease holders on its report, which is based on findings of the Joint team, constituted in pursuance of May 6, 2011 order of the apex court for carrying out survey work and demarcation of 99 mining leases in Bellary, Chitradurga and Tumkur.It said the findings of the CEC should be placed before it for directions.It may be noted that the CEC report said that the high level of production of iron ore (one million tons in 2009-10) shown by Reddy brothersowned AMC ‘is not possible’ from the said mining lease of only 10.12 hectares in Anantapur district and that these permits were being used for transportation of iron ore illegally mined from other areas.” The amicus curiae in the case and senior advocate Shyam Divan told the bench that Janardhan Reddy was not only the tourism minister in Karnataka, but also was made in-charge of the Bellary district.A mining mafia operated in the district.
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