Andhra govt threatens to attach properties of cement factory promoted by TDP ex-MP

In May, the Andhra Pradesh mining and geology department had slapped a fine of ₹100 cr Trishul Cement Company for alleged illegal mining of limestone.

The Andhra Pradesh mining and geology department has written to the revenue authorities of Anantapur district seeking to invoke the Revenue Recovery Act to attach the properties of Trishul Cement Company, promoted by the family of senior Telugu Desam Party leader and former Anantapur MP J C Diwakar Reddy.

Telugu Desam Party leader and former Anantapur MP J C Diwakar Reddy’s family had promoted the Trishul Cement Company which has been accused of irregularities in limestone mining. (File Photo)

“We have served a notice on the company in May this year imposing a penalty of ₹100.24 crore for alleged illegal mining of limestone, failing which the government shall invoke the Revenue Recovery Act to attach the properties of the company,” a senior official of the mining and geology department in Anantapur district told HT on condition of anonymity.

In February, the Jagan Mohan Reddy government cancelled the limestone mining lease of Trishul Cement Company located across 649 acres at Konauppalapadu village of Yadiki block in Anantapur, on the charges that company had violated the Minerals Concession Rules.

The mining lease was granted to the company in August 2007 for captive use for a period of 20 years subject to the condition that the company should establish the cement unit within three years. When the factory was not set up even after the deadline, the government had extended the deadline by two more years and later by five more years twice.

After the YSR Congress party came to power, it ordered an inquiry into the alleged irregularities of the company. The mining authorities detected illegal mining of 14 lakh metric tonnes of limestone which were sold instead of being used for the cement factory.

The mining department official quoted above said though the company was promoted by Diwakar Reddy and his family, his name did not figure in the company records and the company was in the name of other directors.

“We have written to the revenue department to identify the actual beneficiaries of the limestone mining and take appropriate action as per the Revenue Recovery Act,” the official said.

Diwakar Reddy could not be reached for comments. He is said to have gone to Bengaluru.