Janardhana Reddy, India’s mining baron, and a de-facto godfather of Bellary—Karnataka’s infamous mining town—was arrested on Monday for illegal mining activity in Karnataka and Andhra Pradesh, thanks to a report brought out by Lokayukta Justice Santosh Hegde.
Reddy is alleged to have transported iron ore illegally from Karnataka into Andhra. He is also charged with selling the Karnataka ore as originating in AP and selling it as low-grade quality.
The Reddy brothers entered the BJP as well as the mining business when the prospects for both were on the rise. The BJP had come to power for the first time at the national level, though in an alliance with many parties in 1998. Sonia Gandhi put Bellary, one of the most backward Karnataka districts, on the global map when she decided to contest elections from there as well as Amethi for the first time. The Reddys went to work for Sushma Swaraj, the fiery BJP leader who unsuccessfully took on Sonia Gandhi in Bellary. They soon cemented their place in the party and began dominating the district, which was a Congress bastion. Though Sushma lost, she remained a patron of the Reddy brothers and visited Bellary frequently.
A member of the legislative council in Karnataka, Janardhana served as the minister for tourism and infrastructure during the 38-month rule of BS Yeddyurappa government. His elder brother G Karunakar Reddy was also minister in Yeddyurappa cabinet and held revenue portfolio. His other brother G Somashekara Reddy is the chairman of Karnataka Milk Federation and member of the legislative assembly.
Ironically, Janardhana Reddy’s father Chenga Reddy was a police constable in Bellary. As a young man, Janardhana went on to start a chit fund business and rapidly grew it across the state with 46 branches. He also started a small hotel and a Kannada tabloid before entering the mining business.
Reddy started the Obulapuram Mining Company (OMC) in 2001-02, when he had no position in state politics. His fortunes changed with the big spike in the global demand for steel resulting in iron ore prices soaring and making Reddy a phenomenally wealthy man. From riding bicycles, the Reddys began driving the latest luxury cars and even bought two helicopters, while planning on purchasing a dozen more so he could launch a heli-tourism business.
Reddy’s rivals accuse him of doing business in Karnataka (he does not have any mine leases in the state) through ‘raising contracts’, a sort of a rent agreement where Reddy agrees to do the work for a cost. According to an estimate, close to fifty mine owners working in Bellary have ‘raising contracts’ with Reddy.
Of late, Janardhana Reddy, along with his brother Karunakar Reddy and Sriramulu, was struggling to regain his lost glory and toehold in the state BJP, after the chief minister DV Sadananda Gowda refused to induct them into the cabinet. On sunday, his confidante B Sriramulu resigned from his membership to the state assembly in an attempt to show Janardhana’s strength to the party high command. It is rumoured that the Reddy brothers through Sriramulu are testing the waters for forming a separate political party in the state. However, with the arrest of Janardhana Reddy, their dream run in state politics has come to an abrupt halt, for now.
