A Special Bench comprising outgoing Chief Justice K.G. Balakrishnan, Justice Deepak Verma and Justice B.S. Chauhan, today allowed the Reddy quartet’s mining company, Obulapuram Mining Company (OMC) to mine in undisputed areas but so long as it is not within 150 meters from the Karnataka border.

The Andhra Pradesh Government had taken on the Reddy Brothers when they banned OMC, Bellary Iron Ore, Mahabaleswarappa & Sons and the Anantapur Mining Corporation from mining in the Bellary reserve forest, situate on the border of Andhra Pradesh and Karnataka. The high court struck down the government order after which, the state government moved the Supreme Court citing a report by the Central Empowered Committee which reported environmental depredations by the mining companies.

A Division Bench of the Supreme Court comprising Chief Justice K.G. Balakrishnan and Justice Deepak Varma had earlier stayed the mining activities in Andhra Pradesh of Obulapuram Mining Corporation, belonging to the Reddy Brothers; Karnataka’s minister for tourism, G. Janardhana Reddy, G. Karunakara Reddy, the Minister for Revenue in Karnataka, Bellary Mayor, G. Somashekhar Reddy and brother-in-law, Member of Legislative Assembly, L. Sriramulu. The interim order put a blanket ban on all mining in the area.

After having stayed the mining activities, the Supreme Court had also constituted an expert committee headed by Survey of India to map the 3 mines owned by the Reddy brothers and verify whether they were built on encroached forestland. The committee did not find any encroachments and had recommended that fresh mining should not be allowed till a final demarcation of the Andhra Pradesh - Karnataka border is complete.  

Attorney General Ghoolam E. Vahanvati who appeared on behalf of Andhra Pradesh, while Solictor General Gopal Subramaniam appeared on behalf of Survey of India. Appearing on behalf of the OMC, Senior Counsel Mukul Rohatgi had stated that the OMC was not conducting any illegal activities and that the entire controversy arose because of inter-state rivalry in the south. While requesting the court to allow mining in non-controversial areas he had submitted, “The report shows that there is problem between the state of Karnataka and Andhra Pradesh. Both states are having different claims... OMC should not suffer from it. It's a case of inter-state rivalry nothing else.”

The SC today directed Karnataka to appoint officials from forest and mining departments to assist the centrally empowered committee in demarcating the boundary between Karnataka and Andhra Pradesh. The judgment allows OMC to mine in the undisputed portions of the mines. However, they also directed that should the Survey of India object to any mining, OMC shall cease all mining forthwith. The Survey of India is also directed to complete the surveying of the area within a period of two months.

The number of litigations involving the Reddy brothers is what makes this set of matters complicated. Several private parties, like Jindal Steels and public authorities are part of these litigations. A lawyer who appears regularly in mining matters told Bar & Bench on the condition of anonymity, “When there is a mining matter from South India, it is a given that the Reddy brothers are involved. The Reddy brothers are affected indirectly in mining matters.” “There are several other matters in which the Reddy brothers have a substantial interest despite not being present as parties,” he added.

Multiple benches have heard related matters, and the total number of lawyers appearing in these matters, are in excess of 150. The counsels appearing in the letter petition before the Division Bench had Attorney General Ghoolam Vahanvati and Senior Counsel Altaf Ahmed appearing on behalf of the Andhra Pradesh. Senior Counsels K. Parasaran, P.P. Rao and P.S. Narasimha appeared on behalf of the Reddy Brothers. Amarchand Mangaldas, APJ SLG, Khaitan & Co., Lawyers Knit & Co. and Gagrats are representing parties in the related litigations.

A full copy of the judgement is awaited.

Reference:

Civil Appeal Nos. 4056-4064 of 1999; Mineral Area Development Authority etc. Vs. Steel Authority of India

Special    Leave   to   Appeal   (Civil)    No(s).35169-35170/2009 With SLP.(C) (CC) No. 21271-21272 of 2009; Government Of Andhra Pradesh and Others Vs. Obulapuram Mining Company and Others