The Central Bureau of Investigation (CBI), which is probing the illegal mining activities of Obulapuram Mining Company belonging to former Karnataka minister Gali Janardhan Reddy. CBI officials say that mining officials had violated norms while leasing out two other mines apart from Anthar-gangammakonda (AGK) to Obulapuram Mining Company.

CBI officials probing into the illegal iron ore mining case say that officials had violated norms while leasing out two other mines apart from Anthar-gangammakonda (AGK) to Obulapuram Mining Company. CBI sources said that they have collected evidence which proved that OMC had been preferred over other applicants while granting leases in areas measuring 39.5 hectare and 25.98 hectare. A total of six mining leases were granted in D. Hirelal in Obulapuram in Anantapur of which three were given to OMC. "There were violations in granting other leases too. Some of the applicants were coerced by the OMC to withdraw their applications and court cases," said an official.

It has been found that mining baron and prime accused in the case, Gali Janardhan Reddy, had floated fictitious companies that had applied for the leases. "In one case, Janardhan Reddy's father-in-law Parameswara Reddy had applied. During verification, we found that some of the applicants did not exist," added an official. The laptop of Mr Janardhan Reddy's former PA, K. Mehfuz Ali Khan, who is still on the run, revealed vital links. The laptop, which had been seized by the IT department, had information stating that iron ore from Karwar and other areas in Karnataka were exported through the OMC's account. The CBI is also collecting evidence regarding former mines director V.D. Rajagopal's association with Janardhan Reddy and his associates.