MML case : More than a dozen politicians, and officers caused a cumulative loss of loss of Rs.7,51,42,647/-

By Shivakumar G Malagi

May 28: Huge monetary losses allegedly suffered by the state-owned M/s Mysore Minerals Ltd (MML); on allotment of iron ore fines at the recommendations of people in political power structure would in all probabilities land more than a dozen powerful politicians in the mess of mining scam.

Since, the petitioner in the illegal mining case before the Supreme Court, Samaj Parivartan Samudaya convener S R Hiremath is set to unravel quid pro quo between powerful politicians and ore traders pushing state-owned MML towards a cumulative loss of loss of Rs.7,51,42,647 before the apex court reportedly filing an Interlocutory Application when the court reopens in first week of August.

Just when senior Congress leader D K Shivakumar is blaming petitioner for dragging him in MML scam; retired deputy director of mines and geology department R L Gaikwad prepared report had named more than a dozen politicians cutting across the party affiliations for recommending allotment of iron ore causing loss of several crores to MML.

Mr Gaikwad was a key officer in the investigating team of former Lokayukta Justice Santosh Hegde while preparing his first report on illegal mining in 2008 and has dealt in detail how the allotment of iron ore to freelance traders based on recommendations of powerful people , had resulted in huge loss for MML from 2002 to 2008.

Mr Gaikwad’s report referred as Annexure-C, captioned “Alleged irregularities by M/s MML, incidental to their trade and transactions of iron ore-an evaluation”, in the first mining report of Justice Hegde had named more than a dozen politicians cutting across the party affiliations for recommending allotment of iron ore at the loss several crores to MML.

Mr Gaikwad’s report stated that opening up of Chinese iron ore market for low grade ores from the 2002 onwards, resulted in considerable demand for the discarded iron ore fines and waste dumps which hitherto had been ignored as a mining waste. When the company started allotting waste dumps on arbitrary basis, individuals and traders approached the persons in the power structure of the government for recommendations, seeking allotment of iron ore fines and mud from the company on preferential basis.

According to his report; former minister for mines V Muniyappa had caused loss of Rs 4.82,88,460, PGR Sindhia caused loss of Rs 31, 87,858, D K Shivakumar caused loss of Rs 2, 99,800, D H Shankaramurthy caused loss of Rs 1, 06,729 and Gadilingana Gowda caused loss of Rs 59,800.

Apart from these five politicians; Annexure-C has named then MLC S M Shankar, Jagadish hettar, N Dharam Singh, B S Yeddyurappa and Allum Veerabhadrappa for recommending allotment of iron ore to several Bengaluru, Bellary, Chennai and Gujarat based ore trading companies; but Mr Gaikwad’s report has asserted that recommendations made by these politicians to different individuals did not result in loss to MML.

Besides; Annexure-C had pointed out that cumulative loss on various counts during the tenures of as many as eight IAS and IPS officers served as Managing Directors of MML, whose stay was less than 6-months at a stretch from 1999 to 2008 amounting to whopping Rs 642 crore.

Gali planned similar cash for bail deal for Karnataka CBI case too

By Shivakumar G Malagi

Bellary, June 2: As more details of the case emerge in jailed former minister Gali Janardhan Reddy’s “mining bribe for bail” scam; highly placed sources revealed that bribe involved was not Rs 5 or 15 crore but a massive 60 crore package deal exclusively for Obulapuram mining case in Andhra Pradesh.

Of the Rs 60 crore deal allegedly involving rowdy sheeters, AP state minister, sitting judges, ex-judges, lawyers and a former journalist, top sources involved in investigating mining scam told Deccan Chronicle that Rs 15 crore has been paid in advance from Gali associates and now, CBI sleuths hunting for recovering this money.

What’s more shocking here is that Gali’s men were already on task preparing a similar plan to get bail for mining czar 

imprisoned in Parappana Agrahara central prison in Bengaluru in connection with his owned Associated Mining Company’s case in Karnataka too; top sources told.

When the Hyderabad’s CBI special court judge Pattabhi Ramarao granted bail to Gali Janardhan Reddy on 12^th May, top sources said, buoyed with confidence to execute similar plan successfully in Karnataka case too, two Gali associate MLAs with a family advocate have started working out another plan on the same parameters applied in Andhra Pradesh to ensure bail for Janardhan Reddy after the Bengaluru branch of Central Bureau of Investigation filing charge sheet in AMC case. CBI filed charge sheet on 30th May.

Meantime, there was a wide-spread strong rumour in mining baron’s home-town Bellary that Janardhan Reddy will be out of prison on bail in both OMC and AMC cases by mid-June and it’s apparently expressed often in open public by his loyalists including his confidante Independent MLA B Sriramulu saying that Janardhan Reddy will soon get bail and join his padayatra before it reaches Bengaluru in mid July.

Top sources claim that indeed, it’s the advice of tainted judge Pattabhi to hire the services of county’s top most counsel Ram Jethmalani for Janardhan Reddy, since it would create an impression that Janardhan Reddy got bail only because of legal luminary’s advocacy. Following this advice, top sources said, Mr Jethmalani was brought to CBI special court in Bengaluru on 23^rd May making him to cut short his Europe tour to argue on behalf of Janardhan Reddy in AMC. However, CBI special court rejected to grant bail to Gali extending his judicial custody till 5^th June.

Currently,the two MLAs from Bellary allegedly involved in the scam are reportedly fearing of imminent arrest as the CBI, Hyderabad branch now claims to have audio recordings and even CCTV footage to prove the involvement of everyone from politicians to petty rowdy sheeters in the case. The CBI is about to file a memo in the Nampally CBI court in Hyderbad listing out all the participants in the case.

World Environment Day: Three ore-rich districts hope for new lease life this year

World Environment Day: Three ore-rich districts hope for new lease life this year

By Shivakumar G Malagi

June 4: Human habitations affected by serious ill-effects of open cast ore mining in Bellary-Hospet, Chitradurga and Tumkur district for over a decade hope for a new lease of life on this year’s World Environment Day unlike any year before.

Successive governments in state unarguably controlled by strong mining lobby have remained a silent spectator for a decade long exploitation of Mother-Earth for digging ore with a least concern for environment and human life settled around the mining zones until the intervention of the Supreme Court into state’s rampant illegal mining case last year.

  

Responding to the long-time public outcry for conserving environment and improving basic conditions for human living in hazardous mining zones; the apex court constituted Central Empowered Committee (CEC) has recommended a Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ) for areas prone to serious ill-effects of mining in three ore-rich districts.

Indian Council of Forestry Research and Education (ICFRE), Dehradun, outsourced by the state government will prepare CEPMIZ for the areas surrounding the mining leases in addition to the Reclamation and Rehabilitation Plan for mining leases and as well as for the areas found to be under illegal mining. Experts from the ICFRE have already reached the mining fields in Bellary for preparing R&R Plan.

According to the 13^th February report of the CEC; the CEPMIZ will comprise of Bio-Diversity Conservation Plan, Afforestation and Soil and Water Conservation Plan, Physical Infrastructure Development Plan for improving the quality of the existing roads, construction of new roads, railway siding, railways connectivity, aerial transportation, water and power infrastructure etc and associated techno-feasibility studies. Social Infrastructure Plan for schools/colleges, hospitals, skill training institutes, livelihood etc and Regional Monitoring Plan and Mechanism.

The CEPMIZ will be implemented under the overall guidelines and supervision of the Special Purpose Vehicle (SPV) and the Monitoring Committee and by utilizing the funds released for this purpose by the SPV under the chairmanship of the Chief Secretary to the state government with the officers of the concerned departments of the State government for the purpose of taking various ameliorative and mitigative measures in three mineral rich districts.

Highly placed official sources said the CEPMIZ will be based on the findings and recommendations made in macro-level Environment Impact Assessment (EIA) study, commissioned by the apex court and prepared by ICFRE in November last year.

From “drastic changes” in surface topography due to the excavation, dumping and transport of ore, to alterations in rainfall and temperature brought on by the loss of vegetation; the colonisation of invasive species such as lantana in natural habitats, and the infusion of heavy metals in groundwater, the report paints a stark picture of ecological devastation in Bellary, Tumkur and Chitradurga.

Significant recommendation in EIA report as far as mining ravaged Bellary is concerned that the district should reduce production of iron ore to 25 million tonnes per annum (mtpa) from its peak of 41.5 mt that would go a long way in reducing the damage to environment in Bellary, while fixed 5 million tones per annum for both Chitradurga and Tumkur.

ICFRE chief V K Bahuguna speaks:

Director-General of Indian Council of Forestry Research and Education (ICFRE) V.K. Bahuguna, who lead the EIA team to Bellary, spoke to Deccan Chronicle the significance of his recommendations on “sustainable and scientific” mining that would cause very minimum damage to environment.

He said,  if the recommendations of the ICFRE report are implemented in its true spirit, mining operations can be carried out and a win-win situation would emerge not only in Bellary but also elsewhere in Karnataka and the country.

“By sustainable mining we mean the exploitation of mineral resources in accordance with established scientific prescriptions with minimum environmental damage. In nutshell, it is an activity related to extraction of mineral ores in a manner which is ecologically sustainable, socially acceptable, economically viable, and technically and administratively feasible.

State Govt to submit Social and Economic Rehabilitation Action Plan to CEC by 10th July State Govt to submit Social and Economic Rehabilitation Action Plan to CEC by 10th July

By Shivakumar G Malagi

June 6:  Committing itself to ensure a complete face-lift for mining ravaged areas with a new lease of life in a time-bound manner; state government assured the Supreme Court constituted Central Empowered Committee of filing a comprehensive action plan on CEC recommended “Socio-Economic Plan for Mining Impact Zone” with respect to ore-rich Bellary,Chitradurga and Tumkur districts.

“An action plan on social and economic rehabilition for mining zones will be submitted to CEC before 10^th July after conducting meetings with various stakeholders in industry, representatives of people, local NGOs and peoples groups, concerned department officials at taluka and district level”, Chief Secretary to state government S V Ranganath has informed to the CEC chairman P V Jayakrishnan, member secretary M K Jiwrajka, member Mahendra Vya in a meeting called by the CEC at Khanij Bhavan in Bengaluru on Monday.

Highly placed official sources told Deccan Chronicle that meeting attended by senior officials of Indian Bureau of Mines, Union Ministry of Forest and Environment and other departments concerned to mining sector has discussed in detail about the “Socio-Economic Plan for Mining Impact Zone”.

Sources said, draft plan is prepared in tandem with recommendations made in 13^th February report of the CEC, as per this, CEPMIZ will comprise of Bio-Diversity Conservation Plan, Afforestation and Soil and Water Conservation Plan, Physical Infrastructure Development Plan for improving the quality of the existing roads, construction of new roads, railway siding, railways connectivity, aerial transportation, water and power infrastructure etc and associated techno-feasibility studies. Social Infrastructure Plan for schools/colleges, hospitals, skill training institutes, livelihood etc and Regional Monitoring Plan and Mechanism.

The CEPMIZ will be implemented under the overall guidelines and supervision of the Special Purpose Vehicle (SPV) and the Monitoring Committee and by utilizing the funds released for this purpose by the SPV under the chairmanship of the Chief Secretary to the state government with the officers of the concerned departments of the State government for the purpose of taking various ameliorative and mitigative measures in three mineral rich districts.

Highly placed official sources said the CEPMIZ will be based on the findings and recommendations made in macro-level Environment Impact Assessment (EIA) study, commissioned by the apex court and prepared by ICFRE in November last year.

Highlights of Draft Action Plan on SEPMIZ  

Institute of Public & Occupational Health with de-addiction Centre at Bellary

Occupational Health Sub-Centres with de-addiction Sub-Centres in Sandur, Hospet, Chitradurga, Hosadurga, Holalkere & Chiknayakanhalli

Occupational Emergency Ambulances in Sandur, Hospet, Chitradurga, Hosadurga, Holalkere & Chiknayakanhalli

School of Mines with Focus on Environmental R & R

Chair on Environmental Studies in Vijaynagar University & Davangere PG Centre

Strengthening of Private & Govt ITI s and Polytechnics in Sandur, Bellary, Hospet, Chitradurga, Holalkere & Hosadurga

De-silting of Tungabhadra Backwaters for creation of surface storage capacity

Check Dams & Silt Traps for water bodies in mining zone villages in Sandur, Hospet, Holalkere & Hosadurga

Multi-village scheme for flouride and Fe affected villages of Sandur and Holalkere

Flouride and Fe treatment & RO plants in mining zone villages in Sandur, Hospet, Holalkere & Hosadurga

Ambient Air Quality Monitor Devices on all Mining Routes

Regulation of 6 Wheeler Vehicles and phased replacement with 10 + wheelers. Covering of transport vehicles with wagon doors

Plantation and Park development Program for all villages in Mining Areas of Bellary, Sandur, Hospet, Chitradurga, Holalkere, Hosadurga, Chiknayakanhalli

Roadside plantation on Mining Routes & Corridors

Regulation of 6 Wheeler Vehicles and phased replacement with 10 + wheelers. Covering of transport vehicles with wagon doors

Railway Links & Mining Corridors

Way- side Facility cum Truck Terminals in Sandur, Hospet, Holalkere

Village Bypass for Mines as well as end-users in Bellary, Chitradurga & Tumkur Districts

Implementation of Soil rejuvenation for Mining affected villages of Sandur, Hospet, Bellary, Chitradurga, Holalkere, Hosadurga & Chiknayakanhalli through UAS Dharwad/ Raichur and Central Soil Research Institute Bellary

Fodder Bank for Mining affected villages of Sandur, Hospet, Bellary, Chitradurga, Holalkere, Hosadurga & Chiknayakanhalli

Equipment & Facilities for Veterinary Clinics in Sandur, Hospet, Bellary, Chitradurga, Holalkere, Hosadurga & Chiknayakanhalli

Storm Water Drainage for Mining affected villages of Sandur, Hospet, Bellary, Chitradurga, Holalkere, Hosadurga & Chiknayakanhalli

UGD for Sandur Town

Old Age Home in Bellary

Home for Differently abled Children in Bellary

Rehabilitation Home for Women Affected by Domestic Violence / Crimes / Prostitution, Bellary

Facilities for SC / ST / BCM Hostels in Mining Affected Areas of Bellary, Sandur, Hospet, Chitradurga, Holalkere, Hosadurga, Chiknayakanhalli

Residential Schools for children in Mining Affected Areas of Bellary, Sandur, Hospet, Chitradurga, Holalkere, Hosadurga, Chiknayakanhalli

Facilities for Anganwadis & Schools in Mining Affected Areas of Bellary, Sandur, Hospet, Chitradurga, Holalkere, Hosadurga, Chiknayakanhalli

Half Yearly Forum for Consultation with People's Representatives & NGOs of Mining Affected Areas under District Task Force

IEC Programs under District Task Force

Continuing Project for PQLI Monitoring in Indian Wood Science Institute, Indian Soil Resarch Institute & Institute of Mining Health

Continuing Project for PQLI Monitoring by District Task Force

Monitoring Laboratory under District Task Force for R&R Plans of Individual Mines

ACB FIR on cash for bail case: Gali men did not give promised money to judge !

By Shivakumar G Malagi 

Bellary, June 12: Gali Janardhan Reddy's men have not paid full amount of bribe as promised by them to Hyderabad special CBI court judge Pattabhi Rama Rao, to secure bail for imprisoned mine baron in Obulapuram Mining Company's case; top sources told Deccan Chronicle quoting First Information Report registered by the Anti-Corruption Bureau of the Andhra Pradesh.

Although, there was no reference about exact amount of money finalized after the "bail-deal" struck between Gali's men and judge Pattabhi; ACB has reportedly stated in the FIR that several hundred crore deal was okayed on 9th May, two days before the granting of bail to Gali at a four-star hotel in Banjara Hills in Hyderabad between Bellary City MLA and Janardhan's elder brother Gali Somashekhar Reddy and retired judge Chalapathi Rao in mediation of rowdy-sheeter Yadagiri Rao and a certain amount of money was paid in advance. This money was kept at five bank lockers opened by Pattabhi's son Ravi Chandra at a nationalised bank in Ashok nagar in Hyderabad and also at the residence of Chalapathi's brother Balaji Rao. ACB has claimed that Rs 2.75 crore  has been recovered so far out of the total unknown amount of money given as bribe.

Besides, the CBI had collected details of phone conversation recording of 175 seconds held between judge Pattabhi and Chalapathi Rao who subsequently called Yadagiri for 392 seconds before granting bail at 9:45 am on 11th May. 

Interestingly, FIR noted that Gali's men have not paid remaining amount of money as promised by them to judge Pattabhi when CBI asserted in the court hall that it would go for an appeal in the Andhra Pradesh High Court against this bail granting to Janardhan Reddy. Then, Gali's men reportedly told Yadagiri that remaining amount of bribe will be paid only after the disposal of CBI petition in High Court. When he did not get his promised amount of bribe from Gali's men; judge Pattabhi has reportedly delayed for three days to give bail order copy to CBI, this in turn, has raised doubts for CBI over the granting of bail and started investigating the case with the permission of HC chief justice Madan B Lokur.

Enforcement Directorate set to register ECIR into Gali’s mining scam

By Shivakumar G Malagi On the lines of joint probe on YSR Congress Party chief and Kadapa MP Y.S.Jaganmohan Reddy’s illegally amassed wealth; the Enforcement directorate and the Central Bureau of Investigation (CBI) have joined forces to investigate the illegal mining and money laundering charges on the Gali Janardhana Reddy and his associates. Attachment of their massive properties would begin almost immediately after registering of a case. The Enforcement Directorate (ED) is all set to register an Enforcement Case Information Report (ECIR) which was nothing but a FIR, in next couple of weeks into the money laundering acts of the Janardhan Reddy and associates in the mining ore business in both Karnataka and Andhra Pradesh. A law officer of ED based at Bengaluru has on Wednesday sought permission of the special court for CBI cases to record the statement of Janardhan Reddy lodged in Parappana Agrahara central prison jail and also filed an application before the CBI court judge B M Angadi seeking to direct CBI to provide certified copies of FIR, charge sheet and statements recorded pertaining to Associated Mining Company’s case to the ED to facilitate registering an ECIR. Earlier in March, ED Hyderabad wing had accessed certified copies of FIR, charge sheet and statements recorded by the CBI in OMC case. Then, it was expected that ED would proceed in registering ECIR against Gali and associates. “Registering a case against Janardhan Reddy by ED was delayed for few months, since the ED wanted to investigate money laundering angle of Reddy’s mining scam clubbing both cases of AMC and OMC and was waiting for the CBI to file charge sheet in AMC case too”, said a top source. CBI has filed charge sheet in AMC case on 30th May reportedly estimated the loss to exchequer at Rs 480 crore, while, in Obulapuram case, CBI estimated loss at Rs 5100 crore to state’s exchequer in the chargesheet filed in December last year. However, sources said during an Income Tax raid on Reddys and more than 80 associates in four southern states in August 2010, the officials stumbled upon documents that showed that the Reddy brothers had reportedly invested immeasurable wealth parked in tax havens.

The CBI and ED sources say that Gali brothers, allegedly laundered money by using benami companies, bogus loans, creditors, investors and foreign capital, especially by inflating the balance sheet and profit and loss accounts of individuals and companies in the corporate group.

 “ED has prepared its own report on the Gali Reddy’s illegal mining case sharing information with CBI and Central IT department. The ground work has been done and the final nod (from Union Finance Ministry) is awaited (for registering a case),” a source said.

Once the ED gets the nod from the higher-ups to register a case, the Gali Reddy and associates will be booked under section 3 of the PMLA (Prevention of Money Laundering Act) which says whoever directly or indirectly attemps, assists or knowingly is involved in any activity connected with proceeds of crime and projects it as untainted money, shall be guilty of the offence of money laundering.

Lesser scope for Sriramulu to repeat Jagan's performance in State politics

 By Shivakumar G Malagi


Loyalists of jailed former minister Gali Janardhan Reddy and his confidante Independent MLA B Sriramulu are apparently jubilant after landslide victory for Kadapa MP Y S Jagan Mohan Reddy led YSR Congress Party in the by-elections for 18 assembly seats in Andhra Pradesh, with a renewed confidence to repeat this impressive performance in Karnataka in next Assembly elections claiming that people would largely ignore charges on mining scam tainted Reddy brothers and vote for Mr Sriramulu-led new party. When the sympathy triggered among people by the arrest of Kadapa MP Y.S. Jaganmohan Reddy translated into votes and seats for his YSR Congress Party (YSRCP) on Friday when it swept 15 out of the 18 Assembly seats and the lone Nellore Lok Sabha constituency in Andhra Pradesh; Reddy-Sriramulu loyalists started talking of repeating similar verdict in Karnataka too. “We are very happy with the performance of YSRCP. We are proud of Jagan for this achievement. We too all greatly blessed by his father late YS Rajashekhar Reddy. This verdict showed that the people believed him to be innocent. It also proved that people will not let you down if you work hard for their welfare”, asserted Bellary City MLA Gali Somashekhar Reddy. KMF chairman Mr Reddy is confident enough that similar verdict will be repeated in next Assembly elections by Sriramulu who is emerging to be a tallest leader of backward and suppressed classes in State after completing his 920 km padayatra from Bidar to Bengaluru. But, ground reality is not so conducive for Reddy mine barons and political scenario in Karnataka is entirely different from neighbouring AP. YS Jagan has meticulously filled the vacuum for a third force acceptable across all regions in Andhra Pradesh after Congress and Telugu Desam Party, whereas in Karnataka, already there are three politically active major forces-Congress, BJP and JD(S) with different identities. Hence, at this juncture, scope for a fourth-force led by Sriramulu is still uncertain and his Valmiki community is numerically in fourth position and not a politically decisive in majority of constituencies. His party, encashing mainly on Valmiki-Nayakas can only be a good combination either with dominant Vokkalingas in southern Karnataka and Lingayats in north Karnataka to deliver an impressive verdict, but cannot go alone in more than ten assembly seats despite money bags of Reddy brothers. As often claimed by himself, Sriramulu’s party is focused more on North Karnataka that too on few districts surrounding Bellary, so there is a dearth of state-wide acceptability for his party. More importantly, neither he nor his mentor Janardhan Reddy had a long-legacy of politics, but carry a heavy baggage of illegal mining scam, haunted by a series of investigations. Mining scam tainted Janardhan Reddy's life behind bars may not fetch sympathy for Sriramulu, as he widely believed as “poster boy” for Reddy mine barons whose acceptability among relatively rationale voters in Karnataka is diminishing with broad exposure of mining scam. On contrary to this, with its resounding victory, Jagan's party proved that its primary claim to YSR's legacy and promise of a 'suvarna rajyam' (golden rule) scored heavily with the voters, especially women, that thronged road shows addressed by his mother Y.S. Vijayamma and sister Sharmila, had all the trappings of a sympathy wave waiting to happen. Voters seem to have largely ignored the corruption charges against Jagan, which formed a major part of the campaign plank of both the Congress and Telugu Desam Party. Also, he was largely helped by the polarization of Reddy votes irrespective of the regions and prominent Reddy community leaders’ rule the roost in districts, identified with him deserting party affiliations, while, Catholic Christians and Dalits in every region rallied behind him.