S Muthaiah, the former deputy conservator of forest of Bellary, and S P Raju, the former deputy director of mines and geology department at Bellary, were arrested and remanded to 10 days in police custody by a CBI court.
Reddy’s AMC is alleged to have sold iron ore obtained from mines in Bellary — after taking illegal control of mining leases — to domestic and export firms between 2008 and 2010. Muthaiah, who is currently under suspension, and Raju, who has retired, are accused of facilitating illegal mining of iron ore by Reddy and his associates.
The CBI registered a case against Reddy’s AMC last October after the Supreme Court asked the agency to look into charges that Bellary-based mining companies illegally sourced iron ore in Karnataka and supplied it to Reddy’s Obulapuram Mining Company in Andhra Pradesh.
Reddy and his associates have been accused in a Karnataka Lokayukta report on illegal mining for illegally taking over 16 mining leases in Bellary between 2008 and 2010 to carry out illegal exports and domestic supplies. A total quantity of 73,99,314 MT of iron ore valued at Rs 1,849 crore was exported illegally by the network of companies, investigating agencies have found.