Independent initiatives are currently progressing to petition the government to initiate a fresh legal phase aimed at recovering state losses caused by the illegal mining operations of Janardhana Reddy and the Obulapuram Mining Company (OMC). Following a 13-year-long legal battle, a special CBI court in Hyderabad on May 7 sentenced Gangavathi MLA Gali Janardhana Reddy and three others to seven years in prison for their involvement in illegal mining.
Various entities, including the Tapal brothers and certain organisations, are preparing separate legal actions, with backing from environmental activists anticipated. The CBI court’s verdict confirmed that OMC, operating on 68.5 hectares at Antharagangamma Konda in Malapanagudi village, Rayadurg taluk of Anantapur district, had caused damage to the Karnataka-Andhra Pradesh border. Records show that 28.9 lakh tonnes of iron ore were illegally mined and transported via the Ballari reserve forest. The ore from the Karnataka region was of premium quality and was unlawfully extracted and moved by Reddy. At an estimated rate of Rs 3,000 per tonne, the total value of the extracted ore stands at a minimum of Rs 867 crore.
“The verdict confirms Reddy’s guilt and provides the groundwork for further legal recovery. Assets amassed through this illegal activity, both within India and abroad, qualify as ‘proceeds of crime’ and should be confiscated. The government has failed to act so far,” stated Srishail Aladahalli, an environmental activist from Sandur.
Tapal Ekambaram, a mining entrepreneur and ongoing litigant against Reddy, echoed similar concerns: “The court recognised that Reddy looted and transported the state’s resources. The government must recover compensation for the plundered wealth. We intend to write to the chief secretary demanding our share of the ore extracted from our mine. Our legal fight will continue.”
Under Section 21(5) of the Mines and Minerals (Development and Regulation) Act, recovery of value, royalty, rent, or tax is permitted from anyone who illegally extracts and disposes of minerals from any land during the period of encroachment.