Vishakhapatnam: In a startling revelation, a deep-rooted scandal involving the mismanagement and exploitation of sand resources has surfaced under the administration of Jagan Mohan Reddy's government in Andhra Pradesh. The investigation has uncovered the shocking financial irregularities and systematic fraud perpetuated by key leaders of the YSRCP, casting a shadow over the state's mining practices.
Key findings from the investigation indicate that Jaiprakash Power Ventures (JP), the primary sand miner from May 2021 to November 2023, has significantly underpaid the government. Despite winning the tender with an obligation to pay Rs 1,528 crore for the initial two years and an additional Rs 320 crore thereafter, JP Ventures only remitted a fraction of this amount.
Out of the total due of Rs 1,850 crore, JP ventures settled only Rs 1,059 crore, leaving a staggering shortfall of Rs 800 crore.
The gravity of the situation deepened with the revelation that Venkata Reddy, the former Director of Mines, played a pivotal role in facilitating these fraudulent activities. Despite the outstanding dues, Reddy illicitly issued a No Objection Certificate (NOC) on March 14, falsely asserting that JP Ventures has cleared all financial obligations to the government.
Moreover, on March 23, he directed the release of a Rs 120 crore bank guarantee held by JP Ventures, further compounding the financial losses to the state.
Further scrutiny of records uncovered that while JP Ventures officially reported payments totalling Rs 1,059 crore, investigations revealed that only Rs 259 crore of this sum was actually paid in cash. Shockingly, the remaining amount included Rs 500 crore purportedly paid by a housing construction company associated with Jagananna's initiatives, as well as Rs 300 crore was apparently covered by the Departments of Medical and Education.
This convoluted payment structure obscured the true extent of JP Ventures' financial obligations and misdirected reimbursements intended for the government. The scandal underscores systematic failures in oversight and accountability within the Department of Mines, with officials expressing astonishment at the discrepancies concealed over the past five years.
