The Chief Minister of Andhrra Pradesh K. Rosaiah ordered an inquiry into the alleged irregularities committed by the Obulapuram Mining Corporation (OMC) and asked the concerned officials to submit a report within 10 days.
The OMC is accused of carrying out mining operations illegally in areas other than the allotted 133.9 hectares in Bellary reserve forest in Anantapur district. The company is also facing charges of having encroached upon part of the neighbouring mine owned by Bellary Iron Ore Company (BIOC). There are also allegations that OMC has been dumping iron ore at its AP site, which was illegally mined in Karnataka.
The OMC is owned by the Karnataka tourism minister Gali Janardhan Reddy with whom Kadapa MP Y.S. Jagan Mohan Reddy, son of late chief minister Dr YS Rahasekhar Reddy, is alleged to be the benami partner.