Rs.9.43 crore of Karnataka ex-minister attached in mining scam

Bengaluru, April 6  The Enforcement Directorate (ED) on Wednesday attached Rs.9.43 crore of Associated Mining Company (AMC), owned by Karnataka's former BJP minister G. Janarahdan Reddy and his wife G. Lakshmi Aruna, as the balance amount from illegal sale of iron ore to JSW Steels at Ballari.

"This (Rs.9.43 crore) is the balance amount of the Rs.33.80 crore AMC generated from illegal sale of iron ore to JSW and kept with the steel firm," ED said in a statement here.

ED's Bengaluru office had also attached the major amount (Rs.24.37 crore) in March 2015 under the Prevention of Money Laundering Act after investigations through this amount was also kept with JSW.

"AMC and its former partners (Reddy & Aruna) projected the ill-gotten money as untainted," the statement noted.

The value of total proceeds of the crime attached in this case is Rs.71.54 crore, including Rs.37.74 crore recovered from other illegal proceeds of AMC.

Reddy, who was a cabinet minister in the first BJP government from May 2008 to July 2011, is on bail after languishing in Hyderabad and Bengaluru central jails till January 23, 2015 following his arrest by the CBI on September 5, 2011 in multi-crore mining scams in both the neighbouring states.

The Supreme Court ordered the Central Bureau of Investigation (CBI) to probe Reddy's illegal mining activities, including exports through his mining firms in Karnataka and Andhra Pradesh.

The CBI also raided Reddy's palatial bungalow at Ballari, about 300km from here, and in Bengaluru in October 2011 and recovered several incriminating documents in connection with the mining scams.