According to sources, the CBI has evidence against some forest and mining officials who worked in Anantapur during Mr K Rosaiah and YS Rajasekhar Reddy's regime. It is also reported that these officials allegedly neglected to inspect the Bellary Reserve Forest area where illegal mining was taking place at large scale.
The CBI also claims that the officials issued permits to mining companies without following due procedures and senior officials of forest and mining department posted those involved in illegal mining to the geology and mining department to encourage the corrupt practice.
The CBI also revealed that more than 20 lakh permits were issued by the mines department to the Obulapuram Mining Company without even visiting the mines in 2008 enabling the company to show fake exports accounts adding that it was out of question to extract such huge amount of iron ore from the small pits.
The CBI has already named two former bureaucrats in the Obulapuram Mining Company scam. Andhra Pradesh Mines and Geology director V D Rajagopal and senior IAS officer Y Srilakshmi's name were indicted in the illegal mining scam after it was found that they played an active role in the mining scam.
A lease was granted to the Obulapuram Mining Company on Jun 18, 2007 and the same was executed in a haste the next day.