In a swift operation, the CBI on Monday arrested two more accused in an illegal mining case involving Associated Mining Company, owned by the wife of former minister Gali Janardhan Reddy. S. Muthaiah, former Deputy Conservator of Forests who is under suspension now, and S.P. Raju, former deputy director for mines and geology, Bellary, were arrested and produced before the CBI court, which handed over their custody to the CBI till May 10 for further investigation.
Mr Janardhana Reddy, with his assistant Mehfuz Ali Khan, are in jail in the same case. The CBI court, which has extended the judicial custody of the two accused, will also take up the bail petition of two arrested officers on May 10. The CBI has been told to file objections by then. Muthaiah (accused no 7) and Raju (accused no 22) allegedly supported illegal mining activities in Bellary. The CBI had named Mr Reddy, his wife Aruna Lakshmi, and over 20 others as accused in the case. A special CBI team visited the minefields of AMC in Ramgarh area of Sandur taluk of Bellary district and conducted a survey.
The CBI had raided Mr Muthaiah, who is also related to former health minister B. Sreeramulu. The CBI is investigating the role played by Mr Muthaiah while he was the deputy conservator of forests in Bellary between 2005 and 2007, and again between 2008 and 2010. Muthaiah has been accused of sending a report to the government, falsely claiming that there were no illegal mining activities and encroachment of forests in Bellary, even as mining companies were sending truckloads of iron ore from the area. During a raid last year, the CBI collected several vital documents pertaining to demarcation of forest lands, illegal mining and iron ore transportation in Bellary.
The CBI alleges that Mr Muthaiah allowed illegal mining in restricted forest areas and even permitted transportation of illegally mined ore. S.P Raju served in Bellary from July 2007 to February 2008 and from July 2009 to March 2011.