By Mohammed Shafeeq

Hyderabad, Sep 5 (IANS): The law appears to have finally caught up with former Karnataka minister and mining baron Gali Janardhana Reddy, allegedly involved in illegal mining both in Karnataka and Andhra Pradesh.

With his arrest by the Central Bureau of Investigation (CBI) in iron ore rich Bellary district of Karnataka Monday, the agency has acted against a powerful man who with his brothers virtually runs a parallel government in Bellary and in parts of Anantapur district in Andhra Pradesh.

While action is yet to be initiated against the billionaire Reddy brothers for illegal mining in Karnataka, the CBI has swung into action in connection with a case booked against him in 2009 for doing the same in Andhra Pradesh.

Jnardhana Reddy was the Karnataka tourism minister in the cabinet of B.S. Yeddyurappaa, who had to resign recently in the wake of the Lokayukta report. His elder brother G. Karunakara was revenue minister while younger brother G. Somashekara is an assembly member from Bellary.

As ministers in the BJP government of Karnataka and also close to then Andhra Pradesh chief minister Y.S. Rajasekhara Reddy, the Reddy brothers are alleged to have indulged in irregularities -- as established by the central empowered committee of the Supreme Court and more recently by the Lokayukta of Karnataka.

The Obulapuram Mining Company (OMC) and four other mining firms owned by Reddy brothers indulged in illegal mining in Anantapur district since 2005 allegedly in collusion with corrupt officials.

The Andhra Pradesh government had told the high court in December 2009 that 60 percent of the iron ore mined by the OMC fell in the area that is a subject of dispute between OMC and another company called Bellary Iron Ore Pvt Ltd (BIOP).

The OMC, which holds three mining licenses in Anantapur, is accused of dismantling the boundaries between the two states, mining in reserve forest areas as well as in areas of other mining companies, in no-man's land, constructing illegal roads in the forests and transporting ore between the two states in violation of the permits.

The attempts by local officials, the government-appointed panel and even CBI and the Survey of India could not trace the original stones demarcating the boundaries of iron ore mines leased to OMC.

The state government had leased about 68.50 hectares of mining land on the inter-state border to OMC.

Trouble began for the Reddy brothers following the death of then chief minister Rajasekhara Reddy in a helicopter crash in September 2009.

Rajasekhara Reddy was considered close to the Reddy brothers and the two families reportedly share business interests.

In November 2009, then chief minister K. Rosaiah had constituted a three-member committee to probe allegations of illegal mining.

On Nov 24, 2009, the state government ordered a complete halt to iron ore mining after the central empowered committee appointed by the Supreme Court established illegal mining by OMC and recommended that all mining activity be suspended until fresh boundaries of the mining leases are carried out.

The committee also pulled up the Andhra Pradesh government for not being impartial and indicted forest department for covering up illegal mining by OMC.

The Telugu Desam Party (TDP), which has been running a campaign since 2006, alleged that illegal mining by OMC caused a loss of Rs.10,000 crore to the state.

"They are illegally mining 3,000 tonnes of iron ore, thus looting Rs.10 crore of public wealth every day," TDP chief Chandrababu Naidu had said.

Naidu also alleged that OMC pumped in ill-gotten money into business concerns of Y.S. Jaganmohan Reddy, Kadapa MP and son of Rajasekhara Reddy.

While denying allegations of illegal mining, Janardhana Reddy had offered to surrender his mining business and quit politics if the allegations were proved.