Implication in 2011 Lokayukta Report On Illegal Mining
In July 2011, the Lokayukta of Karnataka, Santosh Hegde, published a report on the illegal mining activities in the Bellary region. Janardhana Reddy was accused of completely rigging the iron ore mining in this area and defrauding the government. Directorate General of Income Tax Investigation officials had clues to tax evasion and found that Reddy had entered into a MoU with a one-dollar company of Singapore to camouflage the company's income suppression. They raided the place along with other investigative agencies and formed a report which was the basis of the report on illegal mining. Reddy is said to have designed a "Zero-Risk system" of iron ore mining, where he seamlessly provided protection to unauthorized and unaccounted mining, with active connivance from government officials at all levels. The rule of the iron ore mafia under his command was called the "Republic of Bellary" in which no external control or governance mechanism had any effect.
Read more about this topic: G. Janardhana Reddy
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