Associated Mining Company case: ED to attach Reddy assets SHIVAKUMAR G. MALAG I DC BELLARY, AUG. 8 2013   Enforcement directorate had filed FIR in June, suspects money laundering SR. Hiremath, petitioner in the illegal mining case has urged the ED to initiate measures immediately to attach the properties of Reddy in connection with the AMC case for causing Rs 480 crore losses As it happened in the Obulapuram Mining Company (OMC) case in Andhra Pradesh, the Directorate of Enforcement is expected to attach the properties of jailed mining baron and former minister Gali Janardhan Reddy in connection with the alleged money laundering of Associated Mining Company (AMC) owned by him.Highly placed sources said that the ED, Bengaluru wing had registered an Enforcement Case Information Report (ECIR) which was nothing but a FIR, last June to probe the money laundering acts of Janardhan Reddy and his associates in the iron ore mining business in violation of the Prevention of Money Laundering Act and Foreign Exchange Management Act(Fema).Sources said that ED authorities had obtained statements of Reddy’s accountants, statutory auditors and business partners, besides interrogating Reddy himself at Bengaluru central prison. The CBI had filed the chargesheet in the AMC case on May 30 last year estimating the loss to the exchequer at Rs 480 crore. The ED is expected to come out with a provisional attachment order in connection with AMC shortly soon after listing the immovable properties for attachment.However, sources said that there is not much immovable property owned by Reddy in the country to match his proceeds in the illegal mining business from 2006 to 2010. Most of the wealth earned by him is said to have been parked in tax-havens in overseas countries which the CBI is still investigating. Meanwhile, Mr S.R. Hiremath, petitioner in the illegal mining case in the Supreme Court, while addressing a press conference, urged the ED authorities to initiate measures immediately to attach the properties of Reddy in connection with the AMC case as he had caused losses to the tune of Rs 480 crores to the exchequer. Earlier, on December 4, 2012, Janardhan Reddy's shares worth Rs 884 crore were attached by the ED in the Obulapuram Mining Company (OMC) case, under the Prevention of Money Laundering Act (PMLA).Defining the illegal excavation of 28 lakh metric tone ore from AGK Mines of OMC in Andhra Pradesh as the “ proceeds of crime” amounting to Rs 884.13 crore, the ED provisional attachment order stated that OMC owners invested this ill-gotten amount in the form of 88,41,30,000 shares in Brahmani Industries Limited (BIL) at Kadapa district in AP, having a face value of Rs 10 each, held by OMC and that had been provisionally attached.