Mining lease glare on Jagan

Hyderabad, Sept. 6: CBI officials today said Y.S. Jaganmohan Reddy could be questioned for alleged underhand deals in granting mining leases after suspected links emerged between the Andhra Pradesh MP and arrested Bellary baron Gali Janardhana Reddy.

The sources said the agency had evidence of links between Janardhana’s Obulapuram Mining Corporation (OMC) and Jagan’s business activities.

The allegation is the latest against the Kadapa MP, who is alleged to have struck “quid pro quo” deals with several companies under which they invested in his business ventures in return for favours from the government then led by his father Y.S.R. Reddy.

YSR, who ruled Andhra for five years from 2004, died in an air crash in 2009.

A CBI official said investigators would soon question Srilakshmi, who was the mining secretary then, and Rajagopal, then director of the Andhra Pradesh Mining Development Corporation. “Jagan’s turn will come next,” one official said.

“If necessary,” the official added, “B. Srinivasul Reddy and Sabita Indra Reddy (both former mining ministers) will also be questioned.”

Srinivasul Reddy, a relative of YSR, is now with Jagan’s YSR Congress. Sabita Indra Reddy is the current home minister.

A CBI source said two little-known companies acted as go-betweens for Jagan’s alleged deal with OMC.

According to the agreement, the CBI source said, OMC sold iron ore to one of the companies at just 5 per cent appreciation over cost of production. This company then passed on Rs 90 crore from the sale proceeds to the other, which, in turn, invested Rs 74 crore in Jagan’s media enterprise.