The Hindu : Andhra Pradesh News : Court sets aside grant of mining lease to OMC

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Saturday, Sep 01, 2007
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Andhra Pradesh

Andhra Pradesh

Court sets aside grant of mining lease to OMC

Legal Correspondent

TDP stand vindicated, says Chandrababu Naidu
Government should now learn a lesson, says CPI

HYDERABAD: Justice G. Rohini of the High Court on Friday set aside the Government’s action in granting the latest mining lease to the Obulapuram Mining Company (OMC) promoted by Gali Janardhan Reddy for a large area in D. Hirehal mandal of Anantapur district.

The judge was allowing a writ petition filed by Tappal Shyam Prasad and T. Tippa Reddy who alleged that the authorities favoured OMC and did not consider their applications for lease.

The judge perused the documents and declared that the notification given on July 12, 2004 was also defective.

The court held that the processing of applications received pursuant to the notification, in selecting and granting the lease to OMC was not in accordance with the rules and provisions of the statute.

“Issue prejudged”

The court held that the entire issue seemed to have been prejudged and that the procedure followed by officials concerned including Director and Assistant Director of Mines was not proper.

The refusal of the petitioner’s application was violative of principles of natural justice. The grant of mining lease created a huge controversy with the Telugu Desam Party charging the Government with favouring OMC, though it had been “illegally” mining iron ore in areas more than what was granted in the lease, in violation of Forest conservation and mining laws, blasted an ancient temple and a British era survey tower. The row generated a lot of heat in the last session of the Assembly.

Reacting to the court order, TDP president N. Chandrababu Naidu said it vindicated the party’s stand.

State CPI leader T. Laxminarayana said the Government should at least now learn a lesson, maintain transparency and direct Andhra Pradesh Mineral Development Corporation to take up iron ore mining.

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