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Saturday, July 17, 2010

Rakshana Steels - Brother Anil Kumar - Son in law of Y.S. Rajasekhara Reddy - Corruption Saga

G.O. Issued by Government of Andhra Pradesh on 24th Feb, 2009 -> GO 69


The issue of leasing of iron ore mines in Khammam district is likely to snowball into a major controversy.

More than the Opposition parties, the Telangana Congress MLAs and Ministers are planning to bring pressure on the government to cancel the lease given to Rakshana Steels, controlled by Bro Anil Kumar, son-in-law of the late YS Rajasekhara Reddy for mining iron ore in 1.45 lakh acres since it allegedly hurts the interests of the people in Telangana. “If necessary, we will approach the party high command to ensure cancellation of the lease agreement,” one Congress leader said.

Though Opposition parties did not concentrate on the issue in the Assembly on Tuesday, they are in no mood to leave it alone. As chief minister K Rosaiah is expected in Hyderabad only day after tomorrow (he is in Delhi), the parties are planning to bring as much pressure as possible on him on Thursday for constitution of a House Committee on the deal.

“We will not leave the issue. We will take it up day after tomorrow. This is probably the biggest scam India has ever seen,” TDP chief N Chandrababu Naidu also said. Similar opinion was echoed by the CPI and CPM members G Mallesh and Julakanti Ranga Reddy respectively.

On Monday, the chief minister said his head was reeling when CPI legislator K Sambasiva Rao told him that the value of the iron ore in the areas leased out in favour of Rakshana Steels was Rs 13 lakh crore. According to Opposition parties, 24 hectares was allotted to Rakshana Steels in 2005 and another 260 acres in 2009.

When Opposition parties took objection to allotment, ignoring Visakha Steel, the state government facilitated formation of a joint venture between Rakshana Steels and State Mineral Development Corporation and allotted a whopping 1.4 lakh acres.

According to the MoU, the Mineral Development Corporation would mine the iron ore and sell it to Rakshana Steels but in practice, what will happen is that Rakshana Steels itself mine iron ore unofficially.

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