CBI arrests the Director and MD of a Mining Company based in Bellary,Karnataka and conducts searches; cash amounting to around Rs.4.5 crore recovered.

Information
New Delhi , 05-09-2011

The CBI today arrested the Director of a Bellary based Mining Companyin Karnataka (a Member of the Legislative Council in Karnataka). The CBI has also arrested the Managing Director of the same Mining Company.

Searches were carried out early this morning at the residence of theDirector and the Managing Director of the Mining Firm. Duringsearches at the premises of the Director of the Bellary based Mining Company, cash worth more than Rs.3 crore and gold more than 30 kgs and several incriminating documents were found. Searches were alsocarried out at the premises of the MD of the same Mining Companies.Cash of more than Rs.1.5 crore and several incriminating documents were found.

CBI Hyderabad had registered a Regular Case on 7.12.2009, U/s 120-B,420, 379, 411, 427, 447 IPC, Section 13 (2) r/w 13 (1) (d) of PC Act,1988, Section 26 of Indian Forest Act, 1927, Section 21 r/w Sec 4(1) & 4(1)(a) of Section 23 of Mines and Minerals (Development&Regulation) Act, 1957 regarding the alleged illegal mining by the said Mining Company based in Bellary, Karnataka & others. The case was registered on the request of Andhra Pradesh Government and further notification from Govt. of India. The mining leases were granted by the Govt. of Andhra Pradesh to the Bellary based Mining Company

Hon'ble High Court of Andhra Pradesh on 14-12-2009 granted an Interim Stay stalling the investigation, and these orders were made Absoluteon 14-06-2010. On a Writ Appeal filed by CBI, the Division Bench of Hon'ble High Court of Andhra Pradesh vacated the aforesaid Stay on 16-12-2010. However, in the said order, the Hon'ble High Court ordered CBI to limit itself to the illegal mining activity of the said firms and not to probe into the boundary disputes till the same are decided by the Committee so constituted on the orders of the Hon'ble Supreme Court of India.

After vacation of Stay, the CBI Hyderabad started the investigation of the case and till now around 1530 documents, 112 Iron Ore Samples had been collected and around 85 witnesses/suspected have been examined.

Both the arrested accused are being produced today in the designated Court at Hyderabad.

Investigation is continuing.

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