Supreme Court on Friday asked CBI to probe the linkage between mining activities in Karnataka's Bellary district and Ananthpur in Andhra Pradesh allegedly involving the Reddy
brothers.

The court said CBI investigation was needed as it was prima facie satisfied with the materials placed before it that
the iron ore extracted by two ompanies, Associated Mining Company (AMC) and Deccan Mining Syndicate (DMS), was being
illegally routed through Obulapuram in Andhra Pradesh.

The court was informed that AMC was owned by BJP leader and former Karnataka Tourism Minister Janardhana Reddy, and his wife while DMS was owned by another mining baron S M Jain.

According to the report of the apex
court-appointed Central Empowered Committee (CEC), Both the companies were
involved in illegal mining in the lease area of 10.12 hectares in the village Jaisingapur village and there were
irregularities in renewal of lease.

A bench headed by Chief Justice S H Kapadia specifically noted that Reddy's AMC was involved in “series of

illegalities” and even the expert panel report of CEC suggested that the former minister and his wife G Lakshmi
Aruna appeared to have taken charge of AMC by adopting dubious means to get themselves admitted as new
partners and ensuring the retirement of all the existing partners of the firm.

The court, which issued notice to the CBI, also directed it to apprise it about the status of investigation it had

undertaken against Reddy brothers' Obulapuram Mining Company pursuant to the registration of FIR by it on the next hearing on September 30.