During the Jagan government, most of the applications for mining lease were overlooked, while the application submitted by Karthik Reddy, son of AGP Sudhakar Reddy, received prompt approval. Sudhakar Reddy, an AGP, noticed that his son's application got processed without a delay. On April 30, 2021, Karthik Reddy applied for a lease in the Srikakulam district targeting the Srikakulam Blue variety of granite on 4.920 hectares of land in Sontinur, Nandigam Mandal.

The local Tahsildar issued a no-objection certificate within a day. In 39 days, the Tekkali Mines Department Assistant Director (AD) recommended the allocation of a lease for 2.963 hectares. The file was forwarded to the Mines Department Director, and all formalities were completed. Ultimately, a 20-year lease was sanctioned.

Accelerated Permit Issuance

The bureaucratic delays in mining leases usually take months, but Karthik Reddy's application was fast-tracked:

  • Preliminary Approval: The file was approved by the Director of Mines Department after reviewing it.
  • Letter of Intent (LOI): Dated July 13, 2021, after 78 days from the date of filing the application.
  • Submission of Mining Plan: Done by October 12, 2021.
  • Environmental Clearance (EC): Approved by the Union Ministry of Environment and Forests on January 6, 2022.
  • Consent for Establishment (CFE): Provided by the Pollution Control Board on February 2, 2022.
  • Final Lease Approval: Released by Mines Director, VG Venkata Reddy, on March 30, 2022.

This unusually quick process resulted in the lease getting approved within a mere 11 months of application.

E-Auction Process Ignored

After 2019, the Jagan government mandated that mining leases would be allocated via e-auctions. However, Karthik Reddy’s lease was processed using the previous “first come, first served” system. Over 6,000 pending applications statewide, including 600 at the Tekkali AD office, were sidelined. Many applications that had received preliminary approvals were neglected, while Karthik Reddy's 2021 application was prioritized and finalized under the old policy.

Controversy in Madanapalle

Another case is that of the granite lease dispute in Bandakindapalle, Madanapalle Mandal, Annamayya district. A previous applicant, Shanwaz Reshma Nawaz, filed for a color granite lease for 2 hectares. Already having the application, Karthik Reddy filed for the same area and was sanctioned the lease through VG Venkata Reddy, thereby deviating from the well-established "first come, first served" principle. The decision was challenged by Nawaz in the High Court, but it was not resolved.

Key Takeaways

  • The case brings out issues of favoritism and possible irregularities in the allocation of mining leases.
  • The new e-auction system, as implemented in 2019, seems to have been used selectively.
  • The long-pending applications were given a go-by and people who had political or bureaucratic connections were favored.