Andhra Pradesh High Court 
Andhra Pradesh

Andhra Pradesh HC stays notices cancelling mining leases in Prakasam

The government maintained that the penalty was imposed as the company violated the lease agreement.

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VIJAYAWADA: The AP High Court stayed the notices issued by the State government cancelling the mining leases of SR Constructions of BJP leader Garikapati Rammohan Rao. The mining department served three notices on the construction company for irregularities in mining of lands leased to it at Konidela in Ballikurava mandal of Prakasam district and levied a penalty of `217.6 crore and cancelled the leases.

Challenging the same, the company approached the court. When the case came for hearing before Justice T Rajani, the counsel of the construction company said the mining department acted unilaterally in levying penalty without considering their explanation.

The government maintained that the penalty was imposed as the company violated the lease agreement. The court asked the government to file a counter and stayed the notices cancelling the leases. The case was adjourned to September 8 for further hearing.

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The State  government has reportedly filed a Special Leave Petition in the Supreme Court on Thursday challenging the High Court’s interim orders staying proceedings against the MD of Ramesh Cardiac and Multispeciality Hospitals, Dr Ramesh Babu, and non-executive chairman Sitarama Mohan Rao in the case registered by police over the hotel Swarna Palace fire. 

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