Illegal Mining Scam: CBI Court Orders Issuance Of Request Letters To 4 Countries

A special CBI court has recently ordered the issuance of letters of request to authorities in Switzerland, Singapore, Isle of Man &UAE to furnish details of the mining baron and former Karnataka Minister Gali Janardhan Reddy’s money trail in connection with the multi-crore illegal mining case.

Further, in the order passed on March 4, the special judge for CBI cases Chandrakala stated that “The application filed under Sec.166-A CrPC for judicial assistance to the competent authority in Switzerland is hereby allowed.

The office was directed to issue a letter of request in favor of the competent authority in Switzerland. Furthermore, it is directed to send a copy of the order & details of the documents to the authority.”

Similar orders were issued with regard to the CBI request seeking details of GLA Trading International Pvt Ltd from authorities in UAE, Singapore, and the Isle of Man.

The court order comes as Reddy, founder of the Kalyana Rajya Pragati Paksha (KRPP) party, is campaigning ahead of state assembly polls due by May.

The CBI filed the applications against Gali Janardhana Reddy, G Lakshmi Aruna (since discharged in the case), IAS officer ME Shivalinga Murthy, IFS officer S Muthaiah, K Mehfuz Ali Khan, SP Raju, Mahesh A Patil, and former Ranger Forest Officer H Ramamurthy.

The central agency seeks details of the incorporation of GLA Trading International in Switzerland, a statement of account of the company in Swiss banks, details of the owners, authorized signatories, bank accounts, and the link of Gali Janardhan Reddy and his family members with the company in question.
The court in its order also noted the CBI’s request.

The court noted in its order that “It is to be noted that, in the charge sheet it has alleged that the accused persons were involved in illegal mining under a mining lease issued in the name of Associated Mining Company. As per the information provided by the authorities, the entire money so gained through the process of illegal mining would form part of the proceeds of crime and absolutely is required to find out and initiate the legal proceedings. Therefore, the information is required as sought.”

The CBI in its application stated that Reddy had transacted Iron Ore illegally to the extent of more than 7 – 8 million metric tonnes during 2009-10. A substantial portion of the amount was suspected to be parked by the accused one in various countries.

Therefore, the letter of request is actually essential to find out the existence of the company and details of the bank account in the name of GLA Trading International Private Ltd in Switzerland.

As per the information, the entire money gained through the process of illegal mining would form part of the proceeds of crime and it is necessary to find identity, and money and initiate legal action, the CBI added.