SANGAREDDY: The state government has initiated the process to invoke the Revenue Recovery (RR) Act to recover mining dues from Gudem Madhusudhan Reddy, brother of Patancheru MLA Gudem Mahipal Reddy, in connection with an illegal mining case.
Following the Congress government assuming office in early 2024, officials investigated alleged large-scale illegal mining in Rudraram, Chitkul and Lakdaram villages of Patancheru mandal.
The inquiry found that Madhusudhan Reddy had carried out unauthorised mining through two firms—M/s Santosh Sand and Granite Supply and GVR Enterprises—and failed to pay the required seigniorage fee.
According to the Mining department, the two firms had generated nearly Rs 300 crore through illegal mining.
Under mining regulations, firms found to have evaded government dues are liable to pay the seigniorage fee along with a penalty calculated on the value of the illegally extracted mineral and the royalty evaded. Based on this, the department issued demand notices seeking Rs 389 crore from Santosh Sand and Granite Supply and Rs 249 crore from GVR Enterprises.
Madhusudhan Reddy subsequently sought a waiver of the penalty component and permission to settle the dues under a One-Time Settlement (OTS) scheme. Assistant Director of Mining Dr G. Vijay Kumar told TNIE the government later allowed the firms to pay `95 crore under the OTS — Rs 58.08 crore for Santosh Sand and Granite Supply and `37 crore for GVR Enterprises.
Instead of paying the amount, Madhusudhan Reddy challenged the government’s decision in the Telangana High Court. The court upheld the government’s demand and directed both firms to pay the Rs 95 crore.
Dr Vijay Kumar said that a letter would be sent to the Sangareddy Revenue Divisional Officer within the next two to three days to initiate recovery proceedings against Santosh Sand and Granite Supply and GVR Enterprises under the RR Act.
