Janardhana Reddy arrested in growing iron ore scandal
The Central Bureau of Investigation (CBI) on Monday arrested G. Janardhana Reddy, a powerful politician and mining baron in mineral-rich Karnataka over illegal iron-ore production, the latest move by the pestered government to dig out deep-rooted corruption.
The Central Bureau of Investigation (CBI) on Monday arrested G. Janardhana Reddy, a powerful politician and mining baron in mineral-rich Karnataka over illegal iron-ore production, the latest move by the pestered government to dig out deep-rooted corruption. The CBI reportedly found Rs. 3 crore in cash and 30 kilos of gold from the former minister's palatial mansion.
The Reddy family are major figures in mining in India and have for years also held high government offices in Karnataka, the second largest producer of iron ore in the country.
G. Janardhana Reddy was among those implicated in a probe that exposed an alleged $3.6 billion scam affecting iron ore exports from Karnataka, which is also home to India's outsourcing and IT hothouse, Bangalore.
Karnataka accounts for about a quarter of iron ore shipments from India, the world's No. 3 supplier of the steelmaking raw material after Australia and Brazil. The political crisis is seen delaying shipments and could put further upward pressure on global prices.