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Lok ayukta report on illegal mining names 500 officials

Hegde said more than 500 officials, either by name or by designation, have been named in the report on illegal mining. He said that he is "totally convinced" that the Government would not act upon his second and final report.

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The Lok ayukta of Karnataka has said that his report on the illegal mining issue in the state has found substantial evidence against the chief minister and other officials. The scam has caused losses worth Rs1800 crore to the state.

Asked if there were instances of money acquired by illegal mining was being parked in tax havens overseas, Lok ayukta Justice Hegde said: "We have some instances... this happened. We have recommended that Enforcement Directorate should enquire into it (affairs of Obalapuram Mining Company)".

Obalapuram Mining company is owned by Janaradhana Reddy and his family, with brother and Minister G Karuanakara Reddy and another Minister from Bellary, B Sriramulu being partners.

Hegde said there were instances of the money earned by this company against iron ore exports was not being brought back to India (indicating that money was parked overseas). Besides Yeddyurappa, the Reddy brothers, Sriramulu, the report has also indicted former Chief Minister and JDS leader HD Kumaraswamy, another Minister of Yeddyurappa cabinet, V Somanna, Congress Rajya Sabha member Anil Lad and BJP MLA from Kudligi in Bellary district Nagendra.

Hegde said the Obalapuram Mining Company has evolved a system of "zero risk". "You (the miners in Bellary) give them (the company) 40 to 50% of your produce, your produce will be transported by this group...".

Even if the lorries carrying this ore are caught, the company would pay compound fee and get them released and see to it that the ore is exported.

Hegde said more than 500 officials, either by name or by designation, have been named in the report on illegal mining. He said that he is "totally convinced" that the Government would not act upon his second and final report.

"They did not implement the previous one," Hegde recalled. On the size of the mining scam, the Lokayukta said between March 2009 and April 2010 (14 months), as per the documents available during this period, the extent of illegal mining was to the tune of Rs 1,827 crore.

The Lokayukta said he expects the Supreme Court-appointed Central Empowered Committee (CEC), which is looking into the issue of illegal mining, to take a copy of his report. A CEC member called him today seeking the report but he had asked him to put in his request under the Right to Information Act, Hegde said.

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