The alleged irregularities by Obulapuram Mining Company, owned by Bellary strongman and Karnataka Minister Gali Janardhan Reddy, caused much heat in Andhra Pradesh Assembly, leading to suspension of entire opposition for a day on Thursday.
Members belonging to Telugu Desam Party, Telangana Rastra Samithi,CPI and CPM disrupted the proceedings of the house from beginning demanding that a house committee be appointed to look into the alleged irregularities committed by the company in mining iron ore in Anantapur district, which was causing heavy loss to the exchequer.
The opposition did not allow finance minister K Rosaiah to reply to the debate on the budget and insisted that the mining issue be resolved before taking up the house agenda.
However, the Chief Minister YS Rajasekhara Reddy turned down the opposition's demand for a house committee, saying the matter was pending in court. Denying any irregularities in granting mining lease or in mining activities, the chief minister alleged that the opposition was creating hurdles in the path of industrialisation and development.
The Chief Minister also rejected the demand for canceling the mining lease given to the company or nationalizing the same.
The opposition members were not satisfied with the reply and went on disrupting the proceedings, following which the finance minister moved a resolution to remove 77 members belonging to the parties.
After the suspension, the opposition legislators staged a protest in front of the assembly building. Addressing the legislators, Naidu alleged that YSR had personal interests in Obulapuram and hence was not agreeing to the demand for house committee. He urged Prime Minister Manmohan Singh to intervene to stop the "loot of the state's mineral resources by some private parties in collusion with the chief minister."