Mining, politics and payoffs are a heady mix in Andhra Pradesh and Karnataka, both mineral-rich States. In Andhra Pradesh, several politicians and bureaucrats have been convicted — some even jailed in the past decade — for scams relating to projects, some with huge investments, including from international partners.
The latest case refers to a Chicago jury charging six persons — Congress MP KVP Ramachandra Rao, a close aide of former Andhra Pradesh Chief Minister YS Rajasekhara Reddy, along with five others, in an alleged international racketeering involving payment of bribes to State and Central officials in India to allow mining of titanium minerals.
Dmitry Firtash, chief of the DF conglomerate, and Suren Gevorgyan — both Ukraine nationals, P Sunderlingam of Sri Lanka, Andras Knoff of Hungary and Gajendra Lal, a US citizen, are the others named in the case.
A company in the DF conglomerate, Bothli Trade AG Switzerland, and AP Mineral Development Corporation (APMDC) had signed a memorandum of understanding in April 2006 for setting up a joint venture for titanium mining and separation. While the project envisaged an investment of about ₹4,500 crore, the Government was informed that the annual turnover, after completion of the final stage, would be around ₹18,000 crore.
The project was to be based at Bhogapuram in Vizianagaram district. The APMDC was to allocate about 8,237 hectares — from Lawson Bay in Visakhapatnam to Koyyam in Vizianagaram district, and from Bendicreek to Barua and Donkuru deposit of Srikakulam district. Interestingly, the MoU was signed by Suren Gevorgyan of OST-CHEM Group, Ukraine, on behalf of Bothli in the presence of the then Andhra Pradesh Chief Minister, YS Rajasekhara Reddy, whose 2004-09 stint saw several mining scams.
In mining cases investigated by the Central Bureau of Investigation (CBI), which related to the illegal grant of lease to Obulapuram Mining Company of Gali Janardhana Reddy, a Karnataka-based politician, IAS officer Y Srilakshmi was jailed, as was the MD of the APMDC, V. Rajagopal. Similarly, around 25,000 acres of land allocated to a company allegedly promoted by YSR’s son-in-law in Bayyaram Mines was cancelled by the Kiran Kumar Reddy Government.
Though the titanium project is in a limbo, with delays in getting environment clearance and land acquisition, the federal indictment charging KVP Ramachandra Rao and others has raked up a political storm in the State, which is going to polls in the next 30 days.
The investigation by the Federal Bureau of Investigation also opens up possibilities of the MP and others involved from India being called in for questioning and physical appearance as India and the US have extradition laws in place. On his part, KVP Ramachandra Rao has denied all charges.
CBI probe soughtTDP Chief N Chandrababu Naidu has alleged that the YSR Congress Chief YS Jaganmohan Reddy is clearly involved in this scam. The role of the YSR family and KVP Ramachandra Rao should be probed by the CBI, he said. “I will write to the President, Prime Minister, Central Vigilance Commissioner to take appropriate action as the country’s image is at stake”.
Lok Satta President Jayaprakash Narayan wanted the CBI to join hands with the FBI to unearth the truth in the titanium scam.