Tapal Ganesh seeks recovery of ₹884 crore from Obulapuram Mining Company for illegal ore extraction

Ballari-based miner and activist Tapal Ganesh has urged the State government to initiate recovery proceedings against Obulapuram Mining Company and its group entities for allegedly extracting 29 lakh tonnes of iron ore worth ₹884 crore from Sandur cluster leases in Ballari district.

In a letter of August 18 addressed to the Chief Secretary, Mr. Ganesh has alleged that the mining company, under the leadership of its director and former Minister Gali Janardhana Reddy, illegally mined and transported iron ore from Karnataka while misusing permits from its lease in Andhra Pradesh.

“It has been conclusively established through various inquiries, reports and judicial pronouncements that Obulapuram Mining Company and its group entities have illegally mined and transported approximately 29 lakh tonnes of iron ore, valued at about ₹884 crore, from the Sandur cluster,” Mr. Ganesh wrote.

He cited multiple sources to back his claim, including the Central Empowered Committee (CEC) report of 2011 presented before the Supreme Court, the final Lokayukta report on illegal mining in Karnataka and the judgment of the CBI Court in Hyderabad delivered in May 2025 which convicted OMC and its directors of illegal mining. The activist also pointed to FIRs filed by the Special Investigation Team (SIT) of the Lokayukta in 2015, naming Mr. Reddy as accused no 1 and official correspondence from forest officers documenting OMC’s operations in the Ballari Reserve Forest.

Speaking to The Hindu on Thursday, Mr. Ganesh claimed that the evidence is overwhelming and demanded that the government take immediate steps to recover ₹884 crore, the value of illegally extracted iron ore, from the mining company, MBT Hind Traders and their associates.

“This is not just about revenue loss. It is about protecting Karnataka’s natural resources, upholding the rule of law and restoring public trust that has been eroded by illegal mining. The government must start recovery process which should be monitored at the highest level due to its interstate implications, given the mining company’s operations across Andhra Pradesh and Karnataka,” Mr. Ganesh said and urged the State government to direct the departments of Mines and Geology, Forest, Revenue and Law to pursue coordinated legal action under the MMDR Act, the Karnataka Forest Act and other applicable laws.