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Mining baron Gali Janardhana
Reddy
Mining baron Gali Janardhana Reddy, one of
India's richest politicians, spent his first night at the Chanchalguda
Central Jail like an ordinary prisoner, sleeping on the floor with other
under trials, an official said Tuesday, the 6th September 2011.
The high-profile former Karnataka minister, who is said to fly in his
helicopter from Bellary to Bangalore only to have breakfast, had to make
do with rice, dal and vegetarian curry for dinner. Breakfast was khichdi for both Janardhana Reddy and his brother-in-law
Srinivasa Reddy, who were arrested 5th September 2011 for alleged illegal mining.
Janardhana Reddy (44) constructed a three-storeyed
complex next to his residence in Bellary meant only for his children to
frolic around. He's donated a diamondstudded crown worth over Rs 40 crore to Tirupati, and has another at his residence in
Bellary. As one enters his house, the diamond-studded crown revolves on a
sandalwood carving, illuminated by light. Reddy owns an apartment Parijatha next to Taj WestEnd, a 5-star hotelin Bangalore where he has a
permanent room. A number of luxury cars line the Reddy homes' from
Bentleys and Mercsto R ange Rovers.
Reddy had three helicopters but now owns only one. Reddy who once owed
debtors several crores of rupees in the late 1990s, a decade later
admitted that he and his wife alone have assets worth over Rs 150 crore
thanks to his mining business. He's spent over Rs 30 lakh just to illuminate the hill adjoining his house in Bellary. One which is like a
fortress: a visitor has to pass three check posts with scanners and bomb
detectors' and gun-toting securitymen are common in hishouse.
The Reddys were not born to this world of helicopters, big imported
luxury cars, mansions, gun-toting securitymen. Their father was a police
constable, Chenga Reddy, and they began life out of a two-room police
quarter. G Janardhana Reddy, born in January 1967.He did not attend formal college.
Janardhana Reddy's official bio-data as an MLC lists his educational qualification as SSLC (Secondary School Leaving Certificate)
or Class X. His real education came on the streets where he started his
journey of making money as a chit fund agent. |
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In 1990s Janardhana Reddy and his brothers began to explore politics.
As they helped build the BJP in Karnataka, across the border, in Andhra
Pradesh, the Reddys were cosy with Congressmen. In particular, YSR
Reddy. Janardhana Reddy partnered YSR's son Y.S. Jaganamohan Reddy in
setting up Brahmani Steels in YSR's home town Kadapa.
The year 2001 was the turning point for the Reddys. That year,
Janardhana Reddy, then 34 years old, set up the Obulapuram Mining Company with an initial capital of Rs. 10 lakh. In 2002 he became a
director. By 2003-2004, OMC had taken over several mining leases directly or indirectly and had reported a turnover of
Rs. 35 crores. In just five years, by March 2009, the turnover was
Rs. 3,000 crore. No doubt, say detractors, his close proximity to the state's Chief Minister YSR helped.
Karnataka's Chief Minister BS Yeddyurappa
The mining scandal which led to the unseating of a prominent leader in
India's southern state of Karnataka is the latest scandal to hit the
industry. BS Yeddyurappa of Bharatiya Janata Party (BJP)
quit recently after an anti-corruption report named him as a key suspect
in a scam which allegedly cost the exchequer more than $3bn (£1.8bn). Mr
Yeddyurappa denies any wrongdoing.
Karnataka's Chief Minister BS Yeddyurappa was involved in an illegal mining scam that cost the southern Indian state $400m (£250m), according
to an anti-corruption ombudsman. Retired judge Santosh Hegde said he had evidence of a "huge racket"
involving members of the state's Bharatiya Janata Party (BJP) government.
Members of the Congress and Janata Dal (Secular) parties are also accused.Justice Hegde said he had "substantive" evidence that Mr Yeddyurappa had been
involved in the alleged mining scam in mineral-rich Bellary district
between March 2009 to May 2010.
Justice Hegde say illegal mining of iron ore has been rampant in
Karnataka which produces about 45 million tonnes of iron ore a year and
exports more than half of it to China. "There has been a systematic plundering of ore with active support of
politicians. Illegal mining has thrived only because of a lack of political will," a senior police officer associated with the
investigation told the BBC.
Mining
scams in other Indian States
Karnataka
is not the only state in India where mining has become a controversial trade.
South Korean company Posco's plan to build a $12bn steel plant - India's
largest foreign investment project - in the eastern state of Orissa has
run into heavy weather over farmers agitation.
In August India rejected controversial plans by mining group
Vedanta to extract bauxite in the Niyamgiri area of Orissa. The company has proposed a $2.7bn investment in the area, a project
which it says will bring jobs and development to one of the country's
poorest districts. It has previously said it has complied with all rules
and regulations.
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