Mining baron, Politicians and the facilitator

When Srilakshmi Yarra first hit the headlines it was for being the youngest IAS aspirant to appear in the top 15 candidates list of the 1988 Civil Services exam. Now she is in the news again. For being the first woman IAS officer in the state to be arrested in the multi-crore Obulapuram mining scam.

According to the Central Bureau of Investigation (CBI) chargesheet, the 45-year-old Yarra former secretary of industries (mines), set aside ‘genuine’ applications of other mining companies to favour Obulapuram Mining Corporation (OMC) owned by the one of the richest politicians in the Karnataka Gali Janardhan Reddy. The government order (GO) issued by Yarra omitted any mention of 'captive mining'. Allowing Reddy to export 29 lakh tonne of iron ore out of the state and by pass its intended recipient - a steel company that was to come up in Kadapa district.

“Since the clause 'captive mining' was missing in the GOs 151 & 152 signed by Srilakshmi, OMC exported 29 lakh tonnes of iron ore from 68.5 hectares of ore-rich Obulapuram mine,” a CBI officer probing the scam told TSI under  condition of anonymity. The Obulapuram mine is situated in Ananthpur, AP. The prime accused, Gali Janardhan Reddy, a former minister in Karnataka's BJP unit, was a close associate of the late chief minister YS Rajasekhara Reddy of AP. Apparently, some of the members of the administrative service went out of their way to favour Gali and his two equally powerful brothers, G Karunakara Reddy and G Somashekhara Reddy.

It is hoped that the arrest of Srilakshmi will expose the web of vested interests that involve not only politicians and mining barons but also the state's most influential administrative officers.

“In the due course of investigation all the facts will come out. At the end of the day truth will prevail,” a senior official in the administrative service expressed confidence.

Apart from Srilakshmi, the CBI has already got its hands on the former mines director, Raja Gopal and an Assam cadre IAS officer, MVK Bhanu who was deputed to AP in the capacity of special secretary to YS Rajasekhara Reddy. Bhanu who is also the son-in-law of the former union minister of state PV Rangaiah Naidu is also accused of favouring OMC over other companies.

Meanwhile, the roles of the former principal secretary in the chief ministers office Jannat Hussain and the former chief secretary, P Ramakanth Reddy, who got multiple extensions to retain his post after retirement, are also being talked about.

A 1977 batch IAS officer Jannat Hussain, who served in the tenures of both YSR and Chandrababu Naidu, retired voluntarily from service six months prior to his superannuation and was appointed by the state government as chief information commissioner of AP, with a rank of special chief secretary. Ramakanth Reddy of 1973 IAS batch, is the state election commissioner now. Both the officers hold high ranking posts and are seen to be less vulnerable to CBI questioning than their subordinates.

Srilakshmi was granted bail by the trial court within 24 hours of her arrest. While filing for bail, her counsel submitted that the files pertaining to OMC leases were processed by the former minister of mines and now, minister for home Sabita Indrareddy. And that orders were passed only after minister's approval. Srilakshmi's argument is that she signed the GO in her capacity as industries secretary.

This allegation links Sabita with OMC. At the time of bidding for lease, Gali Janardhan Reddy bought 120 acres in Dubbacherla village of Maheswaram, which falls within Sabita's constituency. “How could a minister of a BJP government of another state run real estate business in the alien state, if he was not supported by the government and also the local leadership?”asks Devendar Goud of Telegu Desam Party (TDP), while referring to the possible involvement of the home minister.

The CBI argument however, is that the minister cannot be faulted, as he or she is a public representative and is dependent on the bureaucracy to guide him/her in discharging duties.
Srilakshmi is not only facing allegations of issuing GOs favouring OMC but also helping the company get the job done with other departments affiliated to mining.

Allegation is that after issuing GO she made a few calls that enabled the company to get clearances from department of forest and environment and other concerned departments.
She is also accused of offering OMC executives free access her office, that enabled them to lay hands on sensitive official communication between her and the centre. It is said that they freely accessed confidential letters and GOs from her office.

In her defence, Srilakshmi's advocates claim that she assumed charge as secretary industries on May 17, 2006 while the provisional lease of the iron ore mine to OMC was made on November 4, 2005 - six months before her appointment. Fact remains, that it was Srilakshmi who issued the GOs.

The arrest of Srilakshmi Yarra, says ex-CBI director Vijaya Rama Rao exposes the collapse of the system.

“Corruption has been standardised. The customs and forest departments are most corrupt. They get used to getting benefits through illegal means. This is what happened in the OMC case,” says former union secretary for home, K Padmanabhaiah.

AP currently has the distinction of being tainted by largest number of scams involving embezzlement of country's assets. The unsavoury role played by babus exposes how deep the rut is.