The making of the most unscrupulous family of Andhra Pradesh

Part 1: The Mining Scam of Andhra Pradesh

Raja Reddy Father of YS Rajashekar Reddy began his career as a manager in Mangampet barytes mines.

Captured the mines by allegedly killing the owner Venkata Narasaiah.

YSR allegedly used to assist him in threatening rivals and making money through illegal mining.

YSR entered politics in 1978 Raja Reddy owned several barite mines in Mangampeta belt of Kadapa district.

Raja Reddy had driven away all other competitors and even managed to encroach upon protected deposits of barites ore in the region.

YSR acquired barytes mining lease to his father and the acquisition of AP Carbides Limited by his family, which was subsequently sold to Renuka Chowdhary On May 23, 1998

Raja Reddy was killed in a bomb attack by his rival gang while returning to Pulivendula from his farm house.

The TDP government had cancelled the barite mining lease in 2000 after a report by an enquiry committee, led by senior IAS officer V S Sampat into the illegal activities, including encroachment of unlicensed mining area.

The Obulapuram Mining Company (OMC) was set up with an initial capital of 10 lakh in 2001 in Ananthapur District.

OMC held mining leases in 134 hectares in Anantapur District of Andhra Pradesh and iron ore reserves in these leases are estimated to be around 100 million tonnes.

YSR government alloted allotted 10,760 acres of government land to Gali Janardhana Reddy in 2007, named Brahmani Steels.

Brahmani Steels the steel plant at Jammalamadugu in Andhra Pradesh’s Kadapa district was inaugurated with much fanfare with YSR arriving in a chopper.

Gali Brothers were allotted over Rs 25,000-crore for the first phase of the Brahmani Steel project and YSR Govt also gave another 5000 acres of land for developing an airport with the promise of generating 10,000 direct jobs and other one lakh indirect jobs via the two projects.

The airport is nowhere in sight even after five years of YSR operation.

OMCPL is also the promoter of a Bramhani Industries Limited, an iron and steel producer. JSW steel is said to be in talks for partial ownership of OMC.

The one-dollar company, GLA Trading International (GLATI), was established on 30 November 2007, with Janardhana Reddy as one of its directors.

GLA, has offices in Singapore, Dubai and the British Virgin Islands, which is a tax haven.

OMC signed the MoU with GLATI to sell iron ore only to evade tax payment in India. With the help of foreign exchange involved an estimated amount of Rs.215,12,50,357.00 was parked in foreign banks.

Gali brothers are the binamis of YSR and YSJ Reddy.

Gali Janarthana Reddy is involved in the illegal mining and export of iron ore in Bellary and Anantapur.

OMC a very big exporter of iron ore with a mining lease from Andhra Pradesh have exported iron ore of Karnataka origin.

However when records are verified there is no record to show that permits were issued to OMC from the Director of Mines & Geology, Karnataka.

Total exports of iron ore of Karnataka origin by OMC during 2006–07 to 2010–11 is 71,61,455 MT, which was 21,44,789 MT from Chennai Port.

The total exports of iron ore of AP origin by OMC from Chennai between 2006–07 and 2010 (till Dec) 2,17,660 MT only.

Fake permits were used to transport ore illegally out of Karnataka in the name of a lease which had emerged from Andhra Pradesh.

The forged permits were used for transporting iron ore to various destinations like Belekeri, Karwar, Goa, Krishnapatnam, Chennai, Mangalore and steel units inside and outside the State.

An unholy nexus of fake and forged permits obtained and used for illegal transport of iron ore mainly illegally extracted from the various places like forest land, Revenue land and also from regular leases i.e., excess quantity than permitted in Karnataka.

Mafia type operations were the routine practices of the day.

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