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According to the charge sheet the SIT stated that Reddy and his aides illegally acquired a mining company of Shaik Saab and then extracted and traded 1,69,263 metric tonnes of ore, without a valid permit. Shaik Saab had taken a mining company as a lease from the government for undertaking mining activities.
SIT sources informed that both Ali Khan and Srinivasa Reddy used to force owners of several mining leases to enter into an instrument of partnership and also the power of attorney to run the business.
It may be recalled that Reddy was arrested last month after marathon questioning by police in connection with a multi-crore Ponzi scam case.