CBI files case against firm owned by Janardhana Reddy's wife

Bellary: The CBI on Monday registered cases against two mining firms including Associated Mining Company owned by arrested former minister G Janardhana Reddy's wife Aruna Lakshmi, and conducted searches in Bellary, Bangalore and Davanagere in connection with illegal mining.

Raids were also conducted on the premises of Kudligi MLA B Nagendra while a case was booked against Deccan Mining Company, which has business links with AMC, highly placed CBI sources said in Bangalore.

The cases were filed consequent to orders of the Supreme Court, which directed CBI to investigate illegal mining in Karnataka on basis of a Central Empowered Committee report.

CBI is already investigating illegal mining in Andhra Pradesh. Janardhana and his brother-in-law, the Managing Director of Obulapuram Mining Corporation (OMC), were arrested on August 5 from Bellary and have been lodged in Chanchalaguda prison in Hyderbad since then.

CBI teams led by Superintendent Subramanay Rao conducted searches at offices of AMC and Jindal Steel Works in Bellary.

They also raided the premises of Kudligi MLA B Nagendra, a close associate of Janardhana Reddy, offices of Deccan Mining Syndicate Company in Bangalore and the residence of Davanagere Zilla Panchayat CEO Muthaiah, who was earlier Deputy Conservator of Forest in Bellary.

The authorities brought under the scanner bank accounts of Muthaiah, who has been facing allegations of aiding illegal mining by Reddy brothers.

Muthaiah is one of key officials indicted by the Lok Ayukta report on illegal mining.

Sources said several documents were seized during the searches.

Foreign right-wing groups funded Babri demolition: CBI

New Delhi: The demolition of the Babri Masjid in December 1992 had the financial backing of some foreign-based right-wing outfits, according to a fresh report by the Central Bureau of Investigation (CBI). The report will be submitted to the ministry of home affairs by September-end.

"Some foreign-based right-wing organisations provided substantial funding to sustain the mass movement. A considerable part of the funds was routed through the hawala channel," a senior CBI official said.

Sources claim an estimated Rs 120 to Rs 150 crore was pumped into the movement through donations by 'sympathisers'.

"The actual amount spent on the movement was higher," a source said.

Names of people and organisations that funded the demolition of the mosque have been named in the report, but not made public so far. Some names have cropped up for the first time. The CBI has learnt about the role of 10 people in funding the demolition of the mosque. The investigating agency, however, has decided not to charge-sheet them now.

The Liberhan Commission report was handed over to the CBI by the home ministry in November 2009. CBI DIG Neerja Gotru along with the Enforcement Directorate and income tax officials then investigated the money trail that led to the destruction of the mosque.