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AP High Court quashes lease to Obulapuram Mining Corporation
Obulapuram Mines

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AP High Court quashes lease to Obulapuram Mining Corporation

Court finds laid down norms not adhered when issuing notification

Hyderabad, August 31, 2007

On Friday, the Andhra Pradesh High Court quashed a Government Order granting iron ore mining lease to Obulapuram Mining Corporation (OMC) to G Janardhana Reddy in Anantapur. Justice Rohini set aside the order granting mining lease to the company for extracting iron ore in 231 acres in Malpanagudi village in Anantapur district on the plea that the Government did not follow the due procedures in the selection process.

The Court said the norms laid down under the Mines Act were not adhered while issuing the notification calling for applications from the prospective mining companies, scrutiny and selection. The petitioner T Shyam Prasad whose grandfather T Thimmappa had a lease agreement with the Department of Mines from 1957 to 1977 but did not apply for renewal alleged the Government had shown undue favor to OMC and violated the rules.

The Government appealed to the court that all procedures were duly followed while selecting OMC. In an affidavit, the Industries and Commerce Department said the mining lease held by the petitioners grandfather had expired and he did not apply for a renewal. Meanwhile, the President of the Telugu Desam Party (TDP) N Chandrababu Naidu said it vindicated his party stand that the Congress Government had violated the norms and shown undue favors to the mining company.

Andhra Pradesh on August 31, 2007

AP High Court quashes lease to Obulapuram Mining Corporation
Court finds laid down norms not adhered when issuing notification

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31 August 2007
Highlights: AP High Court quashes lease to Obulapuram Mining Corporation

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