T Congress Leaders to Wait Till Dasara to Resign

The steering committee of T region Congress MPs, MLAs and MLCs met on Friday and decided to submit their resignations if a decision is not taken in favour of a separate state by the Congress high command. This meeting was held by the steering committee in view of the warning issued by TRS leader K T Rama Rao to the Congress and TDP MLAs to resubmit their resignations or face the wrath of the people in the region. The steering committee, which met at the residence of Rajya Sabha MP K Keshava Rao, discussed the strategy to be followed after September 30, when the AICC deadline set for the announcement of its stand on Telangana expires. "A delegation will go to Delhi to meet the AICC leaders before September 30 to issue an ultimatum that the Congress MLAs and MPs would press for the acceptance of the resignations if a positive decision on Telangana is not taken," said senior leader K R Amos. Apart from Keshava Rao, the MPs present included G Vinod, G Sukhender Reddy, Komati Reddy Rajagopal Reddy and N Balaram Naik, ministers Jana Reddy and Basavaraj Saraiah, 12 MLAs and 2 MLCs. Extending full support to the T general strike, the meeting urged the state government not to take repressive measures against the striking employees as the general strike has been peaceful so far. "Arresting the leaders and attempting to crush the movement with police force will provoke the people and lead to unnecessary complications," asserted the leaders in the meeting.  

Day One Sakala Janula Samme: Civic Services Affected

Day one of the general strike called by the Telangana Employees Joint Action Committee (JAC) seeking a separate state was near total in all the state government offices barring the Secretariat. In Hyderabad, work in the transport offices, water board, various offices of the GHMC, government junior colleges and schools was completely paralysed while the medical staff at the government hospitals attended to their duties wearing black badges. Even as the state government preferred not to act on the first day of the strike, the JAC said that their agitation will go on till Telangana is achieved. A two-day closure of the cinema halls in the region has been called for beginning Wednesday while the APSRTC employees are expected to join in the stir on September 19. The strike was near total in about 50 of Singareni collieries spread across four Telangana districts with the 70,000-odd workers (barring 2,500 officers) abstaining from work on Tuesday despite the state bringing them under the Essential Services Maintenance Act (Esma). As a result, production of 1.2 lakh tonnes of coal was lost on Tuesday. Singareni Collieries accounts for 35% of the total thermal power generation in the state and a power crisis could be in the offing if the strike by the coal miners continues for a few more days. Staff of Hyderabad water works, Central Discom, civil supplies and GHMC participated in large numbers hitting the delivery of civic services. In Telangana region, staff in all municipalities joined the strike resulting in total shut down of sanitation works. The state Secretariat in Hyderabad was the only exception with 85% of the total 6,000 staff reporting for work on Tuesday. Sources in the chief minister's office said that Kiran Kumar Reddy is closely monitoring the situation and that a call would be taken as to when to invoke Esma and GO 177 (No Work No Pay) depending on the intensity of the general strike in the next few days.

T Employees Strike: Govt Invokes ESMA, GO 177

To cope up with the strike call given by state government employees of the Telangana region, the government has invoked ESMA (Essential Services Maintanance Act) and GO 177, which states the no work no pay rule. In order to ensure that essential services are not affected because of the general strike, the state has invoked Esma in about 38 departments including health, GHMC and civic bodies, Hyderabad Water Board, various discoms and sanitation department. In a clever move, the state has also brought Singareni Collaries, which has about 70,000 employees, under Esma. According to state government sources, despite the existence of GO 177 and Esma, many employees from Telangana are likely to abstain from work. "Our intention by invoking Esma and no work no pay rule is to ensure that a large number of employees are deterred from joining in the general strike as under Esma, the services of the abstaining employee can be terminated while GO 177 would ensure no pay if they do not come to work," said a senior official. Meanwhile, the State government directed all T district collectors to act firmly against the striking employees. It has advised the Collectors to send daily report to the Secretariat about who are participating in the protest programmes, who are leading the strike and who are obstructing the employees from attending duties. It has also suggested that the Collectors should not allow any protest programme in any government office and those who participate in "ata-pata" programmes also should be punished under the available mis-conduct rules.

T-tangle: Govt - Employees Showdown Begins

With massive 'Jana Garjana' meeting held at Karimnagar on 12 September, the bugle has been blown for a major showdown between the state government and 2.4 lakh employees of Telangana with the latter calling for an indefinite general strike 'Sakala Janula Samme' beginning on 13 September (today). As an indication of how the tone and tenor of the agitation is going to be, the TRS chief K Chandrasekhar Rao warned that the Telangana region would turn into a fireball if the government invoked the Essential Services Maintanance Act (Esma) against even a single employee from the region. Addressing the massive public meeting 'Jana Garjana' in Karimnagar yesterday, KCR said the employees general strike would be a trendsetter in the history of the state as no bus would run, no train would move, no educational institution would open and no production would take place in the Singareni mines. The TRS chief warned that the entire administration would be brought to a screeching halt as they would replicate the Manipur bandh to bring the government to its knees. Pooh-poohing the government’s pressure tactics to apply 'no work no pay' rule to dissuade the employees from embarking on the strike, he thundered: "We would behead ourselves but not give up the Telangana movement. There is no compromise on separate Telangana state." Under the aegis of the Telangana Employees Joint Action Committee (TJAC), an umbrella of various state government associations, the T employees have given the call for the "Sakala Janula Samme (mass strike)". "To put it simply, the T employees will not report to work from Tuesday," said T Swamy Goud, president of the Telangana Employees JAC. Although the non-Telangana state government employees of the total strength of 6.38 lakh employees in the state will be working, some citizen services like registration of properties, birth and death related issues handled by GHMC and various municipalities, registration of vehicles are likely to be affected. The strike is expected to be partial in Hyderabad and Ranga Reddy districts and total in the remaining Telangana districts.    

Gali's Bail Plea Hearing on 12 September

Mining Baron Gali Janardhan Reddy and his brother-in-law BV Srinivasa Reddy's bail petitions are adjourned for hearing on 12 September. The CBI has sought for a 15 days police custody of the accused for further interrogation. After hearing the day-long arguments from both CBI and Janardhana Reddy's counsel, the magistrate B Naga Maruthi Sharma adjourned the hearing for next Monday. As soon as the hearing commenced, CBI's counsel member B Ravindranath stated they arrested Janardhana Reddy and B V Srinivas Reddy on two main grounds - that both were indulging in illegal activities in the Obulapuram Mining Company and that they encroached additional places than actually allocated by the government. The CBI's counsel argued the accused had encroached land more than the allotted 68.5 hectares at the Anantha Gangamma Konda in Obulapuram. He also said they were involved in manipulating the iron ore stock which was excavated somewhere else and exported to various countries showing the authorisation of OMC. The CBI's counsel also argued that Janardhana Reddy also failed in providing certain details of his designation in the company. While Reddy initiated the process as applicant to obtain lease of the land and the authorisation letters were signed by B V Srinivasa Reddy as executive director, in the Income Tax returns, Janardhana Reddy mentioned his designation as director. Gali Janardhana Reddy and his wife Lakshmi Aruna had also mentioned in the IT returns that both are directors of the company and they draw annual salaries of `18 crore while Srinivasa Reddy who is holding the position of executive director received salary of about `2 crore per annum. “How it is possible and why will an executive director draw lower salary than directors?” the CBI counsel questioned. Meanwhile, opposing the CBI counsel’s argument, Janardhana Reddy’s counsels Uday Lalith, C V Nagesh and Uma Maheswara Rao stated their clients were never involved in illegal activities. They argued their clients did not encroach an inch of more land than what the government had allotted. In view of a case of boundaries relating to the OMC, Uday Lalith said the case is still pending in the Supreme Court and sought bail for Janardhana Reddy and Srinivasa Reddy. After hearing both arguments, Magistrate B Naga Maruthi Sharma adjourned the hearing to September 12.

CBI Unearths Jagan, Janardhan Reddy Links

Amidst denials by both Gali Janardhan Reddy and YS Jagan Mohan Reddy that there exists a nexus between them, the CBI has come out with certain startling facts during its investigation. The CBI has in its possession sufficient documentary evidence that shows flow of investments from Obulapuram Mining Company owned by Gali Janardhan Reddy to Jagati Publications (Sakshi Newspaper) owned by Jagan Mohan Reddy. During investigation, the money trail in to Sakshi newspaper led the CBI to Red Gold Enterprises and RR Global Enterprises. While the Red Gold Enterprises is owned by a Jagan loyalist Diwakar Reddy, his brother R Reddy, who is the executive director of the Sakshi Telegu newspaper owned by Jagan, is also the owner of RR Global Enterprises. These two companies are alleged to be the investment link between Gali Janardhana Reddy's Obalapuram Mining Company (OMC) and Jagan's companies. Both these companies and Jagan's Jagati Publications offices share the same registration addresses. The CBI also has the documents which show that Red Gold is a partner of OMC. According to a registered agreement, OMC was obliged to sell 50 per cent of all iron ore mined, at operational cost plus five per cent, to Red Gold. This was said to be for help in identifying deposits and getting licences and permissions. Critics have pointed out that such a consultancy being worth some Rs. 400 crore per annum is unheard of. The CBI also says that there was an amount of Rs 90 crore which the Red Gold Enterprises had earned through mining with the help of OMC and it had invested Rs 40 crore in Jagathi Publications. There is also a trail of Rs 30 crore which can be found to be invested in Indira Television by purchasing shares of this company.      

IAS Goof up Leads to Illegal Mining by OMC

During the tenure of Dr. YS Rajasekhar Reddy as chief minister, Obulapuram Mining Company, owned by Gali Janbardhan Reddy was issued with a mining license in an extent of 68.5 hectares in Anantapur district. Accordingly, a GO No. 151 was issued on June 18, 2007 by then secretary to AP government, Y Srilakshmi. Interestingly, The GO 151 issued by the Industries and Commerce Department opened the floodgates for illegal mining and export of iron ore. Taking advantage of the words 'captive mining' missing in the GO, the OMC used the lease for Anantapur ( where there is no ore) to actually carry out illegal mining in Karnataka's Bellary district. "In the records, the ore was shown as mined from Anantapur and over 30 lakh tones of iron ore was exported," said an insider source. Though there were six other contenders for the mining license, it was given to OMC as it had promised to utilise it for captive use. If the words 'captive mining' had figured in the GO, then the iron ore mined by OMC in the lease area in Andhra Pradesh would have gone only to the Bramhani steel plant proposed to be established by OMC. "In fact, OMC could not have mined the iron ore at Anantapur as the steel plant proposed by it was yet to come up," the sources pointed out. But in the files pertaining to the mining lease that were taken by the CBI last week as part of its probe into the Y S Jaganmohan Reddy assets case, the noting by then chief minister Y S Rajasekhara Reddy clearly mentions that the license is only for 'captive mining'. "As a result, the CBI cannot hold YSR for any wrongdoing in the granting of the lease. The responsibility for the omission of the crucial two words in the GO is likely to fall on Y Srilakshmi, then secretary in the industries and commerce department, whose name figures in the GO," said the sources. Apart from Srilakshmi, the omission of the two crucial words was also overlooked by then mines and geology minister Sabita Indra Reddy. The fact that the words 'captive mining' was missing came to light when former chief minister K Rosaiah was forced to refer the mining issue to the CBI following tremendous pressure from the opposition parties in November 2009. A senior IAS officer who scrutinized the files at the time confirmed that the file notings on the mining lease issue specifically mentioned the words 'captive mining.'