ANDHRA PRADESH IRON MINING MAFIA

The contractors have to pay Rs.40 for each tractor which carries 3 cubic meters of sand. But, many of them evade seignarage and sell it in the market for Rs.800-1000 depending upon the distance. As many as 20 loads of sand is being transported by each tractor, indicating that it would run into crores within no time. Apart from Srikakulam, illegal mining is being taken place in Narasannapeta and Salihundam. The mafia is reportedly objecting the auction of sand ramps in new places so that it can export sand without paying anything to the government. The government could collect only Rs.6 crore in the previous auction of 14 sand ramps in the district. “We are frequently imposing fines up to Rs.5,000 as a penalty for illegal transport but it is not possible to control completely unless other departments co-operate with us,” said a senior official of the Mines and Geology.

Janardhan Reddy told the state assembly last year, ‘People say I am worth Rs 100 crore (Rs 1 billion). I want to correct them. I am worth Rs 1,000 crore (Rs 10 billion).’

The rise of the Reddy brothers has been phenomenal. They are reported to earn a staggering Rs 12 crore (Rs 120 million) to Rs 17 crore (Rs 170 million) every day through mining.

They make it very clear that they do not own an inch of land in Karnataka and the money is being earned through the Obalapuram Mining Company in Andhra Pradesh.

The Reddy brothers have been involved with politics and the mining business for nearly a decade.

Locals recall that they made their foray into mainstream politics in 1999, when Bharatiya Janata Party leader Sushma Swaraj took on Congress President Sonia Gandhi in the Lok Sabha election from the Bellary constituency.

The Reddys today own two Bell helcopters, a fleet of Mistubuishi Pajeros, an Audi, a Rolls Royce Phantom and a dozen SUVs.

The bus that Janardhan Reddy uses during election campaigns costs Rs 4 crore (Rs 40 million)and is equipped with a bedroom, a television and a kitchen, rather like what Bollywood A-listers like Shah Rukh Khan boast of.

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  1. December 6, 2010 at 9:45 pm
  2. October 24, 2011 at 9:42 pm

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