How Jagan got leasing rights for Gali-owned OMC...

November 07, 2011 13:47
How Jagan got leasing rights for Gali-owned OMC...

New facts have emerged with regard to licenses issued to the Obulapuram Mining Company (OMC) owned by mining mafia don Gali Janardhan reddy in forest land of Ananthapuram district.

Mr Konda Reddy, son of Prodduturu former MLA Mr Varadarajulu Reddy told CBI that YSR Congress president Mr YS Jaganmohan reddy forced him to withdraw his petition filed in the state high court in favour of Gali Janardhan Reddy’s OMC.

According to the affidavit submitted to the CBI and also to the court, Mr Konda Reddy said he applied for the mining lease in 20.99 hectares in survey no P/1 at Malapana gudi village in D.Herehal Mandalam of Ananthapuram district in 2004. He said he was the first person to apply for the mining lease there. Later, OMC also applied for the lease there in 68.5 hectares including the area of 20.99 hectares which was sought by Konda reddy.

Forest officials recommended his case to the state forest head office as the land was in forest department control. As the papers didn’t move forward in the head office of the forest department, he approached the high court and got orders in his favour but the file was kept pending in the secretariat for some months and later on he was informed he was not being sanctioned the lease as he didn’t first apply to the mining department.

Konda reddy again approached the high court and OMC also filed a counter affidavit saying Konda reddy was trying to influence officials as his father was an MLA. As a retort, Konda reddy countered it by producing news paper clippings saying that Gali Janardhan reddy was very close to the late YSR family and Jagan too. “They are only influencing the officials in favour of OMC,” he told the court. High court stayed the lease given to the OMC.

Immediately, Jagan called him to Bangalore and asked him to withdraw the case saying there would be a profit of Rs.600 Cr from the estimated 60 lakh tones of iron there and that the lease was being handled by his friends. He warned him to keep off the lease and withdraw the petition as his friends were not ready to forgo the lease. Konda reddy refused bluntly and came out of Jagan’s residence.

Jagan called him after two weeks and asked him to withdraw the case promising to get him a contract worth Rs.100 Cr somewhere. He also promised him to arrange a bank loan for the said contract. However, Konda reddy didn’t budge an inch.

Third time Jagan called and asked him what he wanted to withdraw the court case. Konda reddy asked for 50 per cent share of the lease given to OMC or at least leasing rights for 12 acres. Jagan asked him to withdraw completely and promised to induct his father into the cabinet when the expansion takes place. After this, Konda reddy has withdrawn the court case but his father was never given any berth.

Konda reddy submitted an affidavit to the CBI and also to the court when he filed another petition in the HC challenging the lease given to the OMC.

When Jagan was questioned by the CBI during the questioning on Thursday, Jagan told the officials that he didn’t know any one by name Konda reddy. But when CBI called Konda Reddy who was sitting in the next room, Jagan refused to talk to him saying that his allegations were politically motivated. Konda reddy arrived there one hour before Jagan had arrived on the instructions of the CBI.

Source for the story: Eenadu daily.

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