This Article is From Nov 12, 2009

Mining barons Reddys in trouble in Andhra

Hyderabad: It's not even been a week since the standoff between the Reddy brothers and B S Yeddyurappa ended, and there's fresh trouble for Karnataka Tourism Minister Gali Janardhan Reddy.

The Andhra Pradesh government wants to probe the alleged illegal mining of iron ore and violation of forest laws by Obulapuram Mining Corporation and two other companies owned by the Reddy family.

The Congress-led government has ordered a three-member committee of Forest Department officials to inquire into the charges, but Opposition leader Chandrababu Naidu is not satisfied.

The TDP, which alleges that the state government showed undue favour in issuing mining lease, wants the contract to the company suspended.

The Reddys, known as the Bellary Mining brothers, were close with former Andhra Chief Minister YSR Reddy and hold business interests with YSR's son Jaganmohan, which include Brahmani steels in Cuddapah and 17,000 acres of land alloted to them by YSR to set up a Rs 25,000-crore steel plant.
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