The arrests of former Karnataka Minister, Mr G. Janardhana Reddy, and the Managing Director of Obalapuram Mining Company, Mr B.V. Srinivas Reddy, signalled a change for the better in the mining industry, said industry observers.
This would also send across a strong message to people, they added.
Reacting to the arrests, Mr R.K. Sharma, Secretary-General, Federation of Indian Mineral Industries, the apex body for the mining industry, said that whatever has happened is a change for the better, and will send a strong message to people.
“The mining industry was tarnished. The CBI must have analysed all wrong-doings, and it will definitely improve the image of the industry. FIMI is against illegal mining, and supports the government and its actions,” he added.
Some sources in the mining industry told Business Line that “sanity” would now return to the industry. “Although it should have happened earlier, a good thing has happened now.”
Hailing it as an important event in the history of the mining industry, Mr Tapal Ganesh, a mine-owner from Bellary, said that people like him were fighting against this since 2004, when they took away his ancestral lands near Vittalapura. “We finally got justice for our fight. The arrest is just a preliminary step and the government should take over all their properties,’’ he added.
Mr D.V. Sadananda Gowda, Chief Minister of Karnataka, said in Bangalore that these arrests would not in any way jeopardise his one-month-old government.
According to reports, the CBI searches in the former minister's residences at Bellary and Bangalore also led to the seizure of over 30 kg of gold, Rs 4.5 crore in cash, and a personal helicopter of Mr Reddy.