After Jagan, Emaar - Now CBI to Probe Sabita, Mopidevi

In a move, considered first of its kind, the A P High Court has taken cognisance of the allegations made by textiles minister Shankar Rao in the media against two of his colleagues home minister Sabita Indra Reddy and excise minister Mopidevi Venkata Ramana. Justice L Narasimha Reddy of the A P High Court on Tuesday expressed concern over the high-level corruption that is allegedly taking place in the ministries of home and excise in the state and felt that it is essential that a CBI probe is conducted against home minister Sabita Indra Reddy and excise minister Mopidevi Venkata Ramana. The judge made this order after taking suo motu note of the allegations made by textiles minister P Shankar Rao in the media on Monday to the effect that Sabita Indra Reddy and Mopidevi were taking huge amount of money from officials and effecting suitable postings for them. According to minister Shankar Rao, Sabita Indra Reddy, home minister, her family members and some highly placed officers in the home department are involved in the corrupt activities. Similar is the case with the state excise minister. Shankar Rao had also said that the chief minister should not support the ministers and officers who are looting the people. Basing on these allegations, Justice Narasimha Reddy directed the registry to place this petition before an appropriate bench that looks after home matters immediately as the matter is of utmost importance. "Since the allegations pertain to the affairs in the home department, it is felt that the matter be investigated by the Central Bureau of Investigation (CBI)," Justice Narsimha Reddy said in his order. Shankar Rao, the complainant, too was made a party for the limited purpose of enabling him to vouch for his allegations, to furnish additional material facts, paving the way for effective investigation and further steps.  

ED Gearing up to Book PMLA Case Against Jagan

The Enforcement Directorate (ED) team led by dy. director N Sridhar met chief secretary S V Prasad and informed him that they are all set to file a case under the Prevention of Money Laundering Act (PMLA) against Jagan and others. According to sources, the team also took in to their possession 22 important files relating to the mining leases granted to companies floated by Kadapa MP YS Jaganmohan Reddy from the state Secretariat. Sources said, among the files taken by ED included files related to the exemption of seigniorage fee given to VANPIC Private Limited, limestone lease in an extent of 822.13 acres in Ranga Reddy district in favour of Penna Tandoor Cement Company, change of name from Walchand Tandoor Cement company to Penna Tandoor Cement company and bauxite lease over an extent of 85 hectares in Jerella Block-1, Visakhapatnam, in favour of AP Minerals Development Corporation. The files relating to bauxite leases to the extent of 617, 460, 113.92, 152 and 93.886 hectares in Ananthagiri, Chittamgondi and Galikonda village in Visakhapatnam district also granted to APMDC, limestone leases over an extent of 266.12 hectares in Dachepally, 145.26 hectares in Vemvaram village and 202.33 hectares in Chennayapalem village in Guntur district in favour of Saraswathi Power and Industries Private Limited were also seized by the ED. Files pertaining to Raghuram Cements, Dalmia Cements, Eswar Cements and Bharathi Cement Corporation were among the other files taken by the ED. Sarawathi Power and Industries, Raghuram Cements, Eswar Cements and Bharati Cement companies are directly owned by Jagan. Interestingly, all the mine leases were granted in 2007-08.

New Application Form For 'Lok Sabha Election'

In view of each and everyone with a criminal background making it to the Parliament, the Electoral Reforms Committee has decided to filter candidates at the stage of filing nominations itself. For this, it has formulated the new 'Application Form For Lok Sabha' to select 'The Best' among the lot. Application Form For 'Lok Sabha Election' (Satire) 1. Name of Candidate: ____________ _________ 2.Present Address: (i.)Name of Jail: ____________ _________ (ii.)Cell Number: ____________ _________ 3.Political Party: ____________ _________ *List ONLY the Last Five parties in Chronological (Order) 4.Sex: [ ] A- Male B- Female C- Mayawati D- Uma Bharathi 5.Nationality: [ ] A- Italian B- Indian 6.Reasons for leaving last party (circle one or more) A- Defected B- Expelled C- Bought out D- None of above E- All of above 7.Reasons for contesting elections (circle one or more) A- To make money B- To escape court trial C- To grossly misuse power D- To serve the public E- I have no clue (If you choose D, attach Certificate of Sanity from a Recognized Government Psychiatrist) 8.How many years of public service experience do you possess? A- 1-2 yrs B- 2-6yrs C- 6-15yrs D- 15+yrs 9.Give details of any criminal cases pending against you (Use as many Additional Sheets as you want) 10.How many years have you spent in Jail? [ ] (Do not confuse with question 8) A- 1-2 years B- 2-6 years C- 6-15 years D- 15+years 11.Are you involved in any financial scams? [ ] A- Why not B- Of Course C- Definitely D- I deny it all E- I see a foreign hand. 12. What is your Annual Corruption Income? [ ] A- 100-500 Crores B- 500-1000 Crores C- Overflow (Convert all your $ earning from Hawala etc to Rupees) 13. Do you have any developmental plans for India in mind? [ ] A- No B- No C- No D- No 14.Describe your achievements in space provided: [_________] Issued in public interest by Election Commission of India.

Farmers Occupy Gali Janardhan Reddy Lands

The unchallenged dominance of Gali Janardhan Reddy in Karnataka is fast fading away after his arrest by the CBI in OMC illegal mining case. Thousands of activists of the Communist Party of India, farmers and Andhra Pradesh Rythu Sangam members took control of the OMC and stockyard fields for nearly five hours, ransacking the weigh-bridge office and railway siding. Red flags of the CPI began to fly on the properties of former minister G Janardhana Reddy. CPI supporters barged into the 70-acre mango farmland on the Karnataka–Andhra Pradesh border. They also raided 250 acres of land in Obulapuram and hoisted CPI flags.Reddy’s security guards’ rooms and some buildings were ransacked. The Andhra Pradesh government had acquired land for industrial development and allotted it to Obulapuram Mining Company and other mining companies. The land earlier belonged to residents and farmers, and the government’s move had received stiff resistance. Those whose property was acquired have marked their property with stones and logs. They also vent their ire at the site office equipment, besides razing three security sheds to the ground.As the protest turned violent, many of the guards and workers deployed at the mine fled the scene, while the local police remained mute spectators. Activists later hoisted a red flag on the mine hillock to mark their control over the land and shouted anti-Reddy slogans. “Land belongs to farmers, not to Gali,” they wrote on walls, office sheds and OMC hoardings.  

Dayanidhi Objected to Spetrum Price Monitoring by GoM

The former Telecom Minister Dayanidhi Maran, who is under  CBI scanner for allegedly favouring a Malaysian firm in the acquisition of Aircel by delaying the files of the latter has seen the some terms of reference of the GoM as impinging on the work of the Ministry. Maran had objected to the terms of reference given to Group of Ministers headed by the then External Affairs Minister Pranab Mukherjee in 2006. He wanted the GoM to be limited to only vacation of spectrum by Defence Ministry. "You had kindly assured me that the terms of reference of the GoM would be drawn up exactly we wanted, which was to focus only on the issue of vacation of spectrum. I am, however, surprised to note that the GoM as constituted has much wider terms of reference, some of which I feel impinge upon the work normally to be carried out by the Ministry itself," Maran wrote to the Prime Minister. He suggested that GoM should discuss four points related to vacation of spectrum only -- recommend measures to make available additional spectrum, make available funds to Defence Ministry for more efficient systems, suggest measures of vacation of spectrum in a time-bound manner and suggest measures for early introduction of efficient digital broadcasting. The decision to constitute a Group of Minister to look into the release of additional spectrum by the Defence Ministry was taken in 2006. In the backdrop of Finance Minister's note to PMO about Home Minister P Chidambaram, the Maran's letter to PM has gained significance.    

SC For CBI Probe Into Gali Illegal Mining Empire

The Supreme Court bench consisting of Chief Justice S H Kapadia and Justices Aftab Alam and Swatanter Kumar on Friday decided to ask the CBI to probe the entire illegal iron ore mining empire of the politically connected Reddy brothers spanning Andhra Pradesh and Karnataka. The bench sought a status report of the ongoing CBI probe relating to illegal mining in the AP side. It also issued notice to the agency to investigate the alleged linkage with the illegal mining in Karnataka's Bellary district. The apex court's environmental panel, Central Empowered Committee (CEC), through amicus curiae Shyam Divan said the committee suspected that the Galis illegally mined iron ore from Bellary and then showed it to be a produce from Andhra Pradesh's Obulapuram mines and exported it. The CEC's report compiled by its secretary M K Jiwrajka indicated that former Karnataka tourism minister G Janardhana Reddy, who was also minister in charge of Bellary, encouraged blatant illegal mining after transferring the mining lease of Associated Mining Company (AMC) adopting dubious means. The amicus curiae A D N Rao told the bench that the mined iron ore was illegally transferred to the AP side and then routed to Krishnapatnam and other ports. "That is precisely what we want the CBI to investigate," the bench said and asked Attorney General G E Vahanvati to assist the court in the matter on September 30 to draw the outline for a CBI probe into the illegal mining in Bellary. The CEC said illegal mining was carried out with impunity in the districts of Bellary, Chitradurga and Tumkur. It said that public sector undertaking NMDC too suffered from the vice as its contractor Deccan Mining Syndicate indulged in over-extraction of the mineral, forcing closure of the mine.  

CBI on Trail of Gali's Foreign Companies

The CBI is getting very close to cracking the mystery of Gali Janardhan Reddy's alleged money laundering through his benami and foreign companies. The CBI and Income Tax department have gathered substantial information about black money transfers of Gali Janardhan Reddy's foreign firms in six countries including Cambodia, Dubai, Singapore, Vietnam, China and Indonesia. The investigation agencies allege that the money was rerouted by the Obulapuram Mining Company which sold iron ore at cheaper costs to Mr Janardhan Reddy's benami foreign firms. "OMC had sold high quality ore illegally mined in Karnataka using permits from Andhra Pradesh to its benami firms based in Singapore, Dubai, Vietnam and other countries. The high quality ore was sold at $70 to $100 per tonne, much less than the international rates of $140 to 170, to benami companies like GLA Trading and four other firms for lesser price, which in turn sold them for more money. The excess money earned by the benami firms returned to the country in the form of investments and hawala transactions," a CBI official said. The Gali brothers had purchased Man-Go Pub Private Limited in Singapore and renamed it Gali Lakshmi Aruna (GLA) International. Man-Go Pub Pvt. Ltd. had been registered on October 28, 2004. In 2007, Mr Arangannal of Singapore was appointed director and the company was renamed on November 23 as GLA the same year. The purpose of the company was changed and in December 2007, Mr Janardhan Reddy was appointed its director. One share of the company was transferred in favour of GJR Holdings International Limited located in the Isle of Man, a tax haven. The share was transferred to Interlink Services of British Virgin Islands in June 2009. CBI and ED will now probe GJR Holdings and the Interlink Services Group, GLA Trading International Ltd. which also has a presence in Dubai. The CBI meanwhile alleged that Mr Janardhan Reddy took the lease of OMC despite knowing that it would fetch low-quality iron ore. "Obulapuram Mining Company Private Limited has three leases including 68.52 hectares at the Anthar Gangammakonda mine. No mining activity was done there. It was only to use permits from the state to transfer ore from illegal mines in Karnataka. Scientific evidence has proved that the iron ore quality is very low and not of commercial grade in the area. They were obtained with the sole purpose of their illegal mining activities," said the CBI.    

CBI Alleges Gali Also Ran 'Mamool Raj'

The Central Bureau of Investigation, which is probing in to the illegal mining activities of Obulapuram Mining Company ownwed by Gali Janardhan Reddy, says that he also ran a parallel 'mamool raj' along with illegal mining. It was revealed by Janardhan Reddy while in their custody last week, say the CBI sources. The CBI sources allege that Gali Janardhan Reddy has made more than Rs. 1000 crore 'private royalty' from fellow miners through this mamool raj in the past three years. This is in addition to the illegal mining he had done in the region. According to the sources, there were roughly 300 such miners who have been paying mamool to Gali's Obulapuram Mining Company. As per CBI sources, Gali would browbeat the miners by telling them that he could get things done through the governments not just in Karnataka and AP, but in New Delhi as well. Thus, he would force them to sell him 70% of their iron ore at Rs 700 a ton while the market price was Rs 5,000 per ton. The remaining 30%, the miners could sell it in the open market at the prevailing rate. This was known as the 70-30 method, the sources said. Basing on this information, the CBI has concluded that Gali had collected 'mamool' for 28 lakh tonnes which should have fetched him more than Rs 1,000 crore between 2007 and 2010. He was exporting the ore thus collected to China and other countries along with the ore he mined illegally at Rs 5,000 per ton. He too was selling the ore to certain foreign players at the same rate he bought’ from the fellow miners as a matter of strategy and the foreign players were asked to pay the balance amount in the form of investment in his firms mainly Brahmani Steels, the CBI sources said. It was this re-routing of money that has now formed the crux of the money laundering probe launched by the Enforcement Directorate (ED) at Bangalore and the CBI sleuths. Whether CBI's contention can stand in a court of law remains to be seen. Several aggrieved miners who were made to sell their ore to OMC at a low rate unsuccessfully tried to get relief by complaining to the top political bosses about Galis 'mamool raj' are now turning witnesses for the CBI, it is learnt.