HYDERABAD: Two government orders that Y Srilakshmi signed have provided CBI the dope it needs to nail the IAS officer's role in the Obulapuram mining scam. She signed both these orders No. 151 and 152 in her capacity as secretary, Industries and Commerce Department on June 18, 2007. The CBI's remand diary states that these orders helped Gali Janardhan Reddy's Obulapuram Mining Company Private Ltd (OMCPL) mine iron ore illegally.
In the remand diary, the CBI alleges that Srilakshmi entered into a "criminal conspiracy" with B V Srinivasa Reddy (A1), Gali Janardhan Reddy (A2), V D Rajagopal (A3) and others to "cheat" the state government by sanctioning iron ore mining leases to Obulapuram Mining Company Limited, violating all the rules and procedures prescribed in the Mines and Mineral (Development and Regulation ) Act, 1957 and Mineral Concession Rules, 1960.
The diary says: "Srilakshmi, on Jan. 18, 2007, wrote to the central government (secretary, Department of Mines) making a comparison between OMCPL and Vinayaka Mining Company on the pretext that these two applications were received the same day (Aug 28, 2004) and all other applications were described as later applications and proposed to be rejected.
"But the Centre asked the state government to consider all applications as simultaneous applications and furnish comparative chart of merits in respect of all the applicants." Then Srilakshmi wrote back persuading the Centre to issue prior approval and assured that all the prerequisite formalities would be taken care of later. This included issue of showcause notices and providing opportunities to other applications. In the letter, she mentioned that OMCPL will utilise the iron ore for captive consumption as they are setting up an integrated plant.
Srilakshmi, after receipt of the formal letter from the Centre on May 30, 2007, issued showcause notices to various applicants. But even before the replies to the notices were received, she granted the mining lease to OMCPL on June 18.
On the same day, she issued GO Ms No. 151, sanctioning a mining lease for iron ore over an extent of 68.5 hectares in survey nos. 1 and 2 of Antargangamma Konda of Siddapuram and Malapanagudi in D Hirehal mandal in Anantpur district in favour of OMCPL for a period of 20 years. The issue of grant of mining lease for the purpose of captive mining was not mentioned in the GO whereas in the rejection letter issued to M/s Sathavahana Ispat, it was clearly mentioned that OMCPL proved to be a prudent entrepreneur with foresight as it, which already holds a mining lease, had applied for additional areas in view of their intention to establish a captive plant.
Srilakshmi, on June 18 (the same day), issued another order (No. 152) sanctioning a mining lease for iron ore over an extent of 39.481 hectares in survey no. 1/P of Obulapuram in Anantapur district in favour of OMCPL for a period of 20 years. In the GO there was no mention about captive mining. Taking this as advantage, OMCPL had started excavating iron ore from the said area and exported it and made huge gains.
The CBI concluded that these facts clearly established the intention of Srilakshmi who with the objective of granting mining leases to OMCPL circumvented rules and procedures. In respect of both GOs the notesheet was initiated on June 18 and on the same day it was approved by the minister in charge of mining. "This clearly shows the intentions of the officers of the Industries and Commerce Department headed by Srilakshmi as secretary.
"As per the rules of procedures, the secretary of the department is responsible to ensure the correctness of the GO. In this case, Srilkahsmi, by abusing her official position, issued the two GOs without mentioning captive mining and thereby caused pecuniary gain to OMCPL. This gave an impetus to B V Srinivasa Reddy and Gali Janardhan Reddy to indulge in illegal mining. Had the GOs been issued to utilise the iron ore only for captive purposes, it would have made OMCPL to expedite setting up of the steel plant. The two accused made huge gains by dishonestly using the mining leases for justifying illegal mining."
Even after the issue of illegal mining leases were being debated, Srilakshmi did not take any initiative to rectify the GOs. "This clearly establishes the existence of a close nexus between her and the accused," the CBI says.
The agency accuses the officer of telling openly the members of a committee that she constituted to go into the fixing of boundaries between the various lease holders to help OMCPL. This further establishes the close nexus between Srilakshmi and OMCPL and its directors, the CBI said. She played an important role in ensuring that the deserving applicants would not get mining leases which were notified for grant by the Centre on July 12, 2004.
The CBI said that a mining lease applicant C Sashi Kumar who was examined as a witness in the case had stated that Srilakshmi had demanded huge amounts of money from him for processing his mining lease application and as he did not meet the demand for a bribe, his application though it had merit, was not considered.
The CBI said after they secured this evidence, Srilakshmi was questioned at her office (of commissioner, family welfare) on Monday but she refused to spell out which other public servants, politicians and private individuals and the accused persons had influenced her in ensuring that mining leases were given to OMCPL.
The CBI said it arrested her since she is an influential person and is likely to tamper with evidence if left free and that she is likely to influence witnesses and will not allow the CBI to carry out free and genuine investigation. Also there was the possibility of Srilakshmi going abroad and disappear since she not only is an IAS officer but is also the wife of an IPS officer having "a lot of resources."