The move came after Telugu Desam Party (TDP) and other opposition parties alleged that 5 billion worth iron ore was illegally shifted from Karnataka to Andhra Pradesh by OMC.
A three member committee led by Chief Minister K Rosaiah ordered the probe following numerous complains about the illegal activities of the Reddy brothers which eventually resulted in the order for CBI probe.
The list of complains against the firm include illegal mining, encroachment of reserve forest area as well as other companies" mining areas, construction of illegal roads in the forests and transporting ore in violation of the permits.
On Nov 1, the first complain against OMC was filed by Anantapur Divisional Forest Officer (DFO) Kallol Biswas who questioned the firm's illegal transportation of ores mined outside the lease area.
He also said that the illegal activities of the firm has destroyed the boundary lines between the mining lease areas of two states.
Stating that the state has incurred huge loss due to the activities of the firm, TDP president N Chandrababu Naidu has asked for revoking of the firm's license.