Rs 100 cr taken out of FDs of indicted mining firms in 3 days

The large withdrawals all occurred from accounts linked to some of the front firms found by the Lokayukta to have been operating benami accounts for the real masters of the mafia.

“We have the information and details of the bank accounts where large-scale withdrawals have taken place after the Lokayukta report was submitted. Since our investigation is complete,we are passing on the information to Income Tax authorities,” sources said.

They added that they had not looked at fixed deposits initially. “We only looked at the current and savings bank accounts to link illegal transactions to various companies. We did not look at the fixed deposits since these were not directly linked to the receipt or disbursement of payments as part of the racket,” sources said.

The Lokayukta team put over 500 savings and current bank accounts under the scanner and coordinated with income tax authorities to produce its 25,000-page report on illegal mining.

Its findings have indicted top leaders of the ruling BJP from the district of Bellary,former district in-charge G Janardhan Reddy,and his brothers and close associates for being at the heart of a mafia that illegally exported nearly Rs 12,000 crore worth of iron ore between 2008 and 2010 through a well-organised network of front companies and benami bank accounts.

One of the front firms,M/s Sri Bhaktha Markandeshwara Minerals (SBMM),was found to have been operated by an associate of G Janardhan Reddy,K Mahesh,though the firm and its bank accounts at Axis Bank,Hospet and Bellary,Lakshmivilas Bank,Hospet,and Pragathi Grameena Bank,Hospet were opened in the name of a small company employee called Kashi Viswanath. The Lokayukta report said Vishwanath had no idea of the transactions or the business of this firm.

A total amount of Rs 113,47,78,583 was credited till January 2011 to the four accounts of SBMM that were opened between June 2009 and April 2010. Documents obtained from Income tax raids on K Mahesh have revealed that he was making payments to a person identified as ‘G J Reddy Sir’ as well as to firms like the Associated Mining Company run by G Janardhan Reddy from accounts operated in the name of SBMM. The Lokayukta report has concluded that these transactions were related to the facilitation of illegal mining racket in Bellary district.