ANANTAPUR: The Obulapuram Mining Company (OMC) of the Gali brothers was set up with an initial capital of `10 lakh in 2001. By 2003-04, it reported a turnover of `35 crore and by 2009, a staggering `3,000 crore.
The Supreme Court’s Central Empowered Committee, which investigated the OMC’s operations in Obulapuram, pointed out irregularities in the mining of 1.97 crore tonnes of iron ore worth `5,308 crore. This ore was believed to have been mined from the reserve forest area for which there was no permission. The panel concluded that the OMC mined in 326 hectares, including 150 hectares in forest land, even though it had taken on lease only 132 hectares. The Gali brothers’ journey on gravy train began in 2002 when they took on lease 29.9 hectares in Obulapuram, 15 km from Bellary, in the name of OMC. Two years later, a global boom for iron ore changed their fortunes.
In the meantime, the brothers developed a good rapport with YS Rajasekhara Reddy in Andhra Pradesh and when the latter became the chief minister in 2004, it was the duo who benefited the most. In 2006, in the name of OMC-II, the brothers were able to get on lease another 39.5 hectares with the help of YSR. Earlier, the plot was given on lease to a certain Tappala Shyamprasad’s family but they left it since there was no demand for iron ore when they were interested in mining.As per rules, former lease holders must be invited if the same piece of land is going to be leased out to another party. But it did not happen in the case of Gali brothers. The following year, the brothers expanded, taking on lease an additional 68.5 hectares in the same area in the name of OMC-III.
When China began importing iron ore on a large-scale, the brothers graduated into big league. The brothers, like no one did before, began using a fleet of helicopters to run their operations. Already with BJP by that time, they made it big in politics too.
The Reddys displayed a streak of ruthlessness in expanding their empire. They allegedly acquired, through strong-arm tactics, mining leases of others. For instance, Santosh Kumar Modi’s company, Bellary Iron Ore Pvt Ltd, had 27.12 hectares bordering the OMC lands. On Jan 13, 2008, Gali Janardhan Reddy, with men brought from Bihar, allegedly started illegal mining in those lands which drew loud protests and triggered a controversy.
Following report of Central Empowered Commitee, Supreme Court ruled that no iron ore from mines was to be sold. Petitions for permission to clear stocks were rejected by the court.
Kalol Biswas, who worked as DFO in Anantapur, had the guts to make a statement that illegal mining was carried out in Obulapuram mines. Out of fear or other reasons, no official was able to provide a complete picture of what was happening in Obulapuram, which forced courts to form committees to look into the issue.
The CBI led by its Joint Director V V Lakshmi Narayana visited the mines thrice and detected illegal mining in reserve forest area and on the lands of others by OMC. Roads were laid in forest lands without permission. Though OMC -III had 68.5 hectares, it was not mined. But in books, it was shown that 27 lakh tonnes of iron ore was mined and sold. It was also found that iron ore in OMC-III was of 30 grade, while the mineral sold was that of 60 grade.