Indian police have detained two powerful mining magnates over allegations that they illegally created a business empire worth billions of dollars, in the first high-profile arrest since anti-corruption campaigner Anna Hazare inspired a wave of protests across the country.
Agents from the Central Bureau of Investigation arrested Gali Janardhan Reddy, the owner of the Obulapuram Mining Corporation and a former minister in Karnataka state, and his brother-in-law Srinivas Reddy, the company's managing director, on Monday. The men face charges of conspiracy, forgery and violation of mining laws.
Manmohan Singh's beleaguered government has been mired in allegations of corruption since last year, but nationwide public outrage came to a boil last month when the 74-year-old Hazare held a two-week hunger strike until parliament agreed to tougher anti-corruption laws. Hazare's campaign tapped into deep-rooted anger over the country's endemic corruption, petty and large-scale, which successive governments have failed to tackle.
Singh, who appeared to underestimate support for Hazare, has come under increasing criticism for failing to deal with major corruption scandals in telecommunications, sports and mining.
"One motive for the arrests may be to show the government is acting against corruption," said lawyer Prashant Bhushan, a close aide of Hazare. "But the CBI acts only when there's political direction, and the fact is that it suits Delhi politically to arrest the Reddys now. These arrests were long overdue."
Janardhan Reddy, with his brothers Karunakara and Somasekhar, had long been accused of running an illegal iron ore extraction empire along the border of Karnataka and Andhra Pradesh which had devastated the environment.
"With these arrests Delhi may be trying to give the impression that it is fighting corruption," said Paranjoy Guha Thakurta, director of the documentary film Blood and Iron.
"But the arrests should have happened long ago," he added.
As ministers, Janardhan and Karunakara Reddy were seen as the real power behind chief minister BS Yeddyurappa, recently forced to resign after a damning report on the state's illegal mining operations by the ombudsman, Santosh Hegde. He described links between Karnataka politicians and mining as a "mafia type of operation."
Due to Hegde's ground-breaking investigation, the Reddy brothers were also ousted from the state cabinet last month, but had begun to jockey for a return to power when the CBI acted.
"The loot was allowed to go on with open eyes," Hegde said after the arrests. "There were irregularities at every stage of the business. But the arrests are not because of my report, since the Karnataka government has still not given the CBI permission to investigate. The arrests are due to a case filed in neighbouring Andhra Pradesh."
The distinction drawn by Hegde is loaded with political significance. Karnataka is ruled by the Bharatiya Janata party (BJP), which is in the opposition at the centre. Andhra, however, is ruled by the Congress party, which is also in power in Delhi. The achievement of the Reddy brothers, from the city of Bellary in Karnataka state, was to cosy up to powerful leaders in both the BJP and the Congress.
"The loot enriched the two largest political parties in India," said Thakurta.
However, the death of an Andhra chief minister in a helicopter crash in 2009 seriously damaged the Reddys' links with the Congress party.
Agents from the Central Bureau of Investigation arrested Gali Janardhan Reddy, the owner of the Obulapuram Mining Corporation and a former minister in Karnataka state, and his brother-in-law Srinivas Reddy, the company's managing director, on Monday. The men face charges of conspiracy, forgery and violation of mining laws.
Manmohan Singh's beleaguered government has been mired in allegations of corruption since last year, but nationwide public outrage came to a boil last month when the 74-year-old Hazare held a two-week hunger strike until parliament agreed to tougher anti-corruption laws. Hazare's campaign tapped into deep-rooted anger over the country's endemic corruption, petty and large-scale, which successive governments have failed to tackle.
Singh, who appeared to underestimate support for Hazare, has come under increasing criticism for failing to deal with major corruption scandals in telecommunications, sports and mining.
"One motive for the arrests may be to show the government is acting against corruption," said lawyer Prashant Bhushan, a close aide of Hazare. "But the CBI acts only when there's political direction, and the fact is that it suits Delhi politically to arrest the Reddys now. These arrests were long overdue."
Janardhan Reddy, with his brothers Karunakara and Somasekhar, had long been accused of running an illegal iron ore extraction empire along the border of Karnataka and Andhra Pradesh which had devastated the environment.
"With these arrests Delhi may be trying to give the impression that it is fighting corruption," said Paranjoy Guha Thakurta, director of the documentary film Blood and Iron.
"But the arrests should have happened long ago," he added.
As ministers, Janardhan and Karunakara Reddy were seen as the real power behind chief minister BS Yeddyurappa, recently forced to resign after a damning report on the state's illegal mining operations by the ombudsman, Santosh Hegde. He described links between Karnataka politicians and mining as a "mafia type of operation."
Due to Hegde's ground-breaking investigation, the Reddy brothers were also ousted from the state cabinet last month, but had begun to jockey for a return to power when the CBI acted.
"The loot was allowed to go on with open eyes," Hegde said after the arrests. "There were irregularities at every stage of the business. But the arrests are not because of my report, since the Karnataka government has still not given the CBI permission to investigate. The arrests are due to a case filed in neighbouring Andhra Pradesh."
The distinction drawn by Hegde is loaded with political significance. Karnataka is ruled by the Bharatiya Janata party (BJP), which is in the opposition at the centre. Andhra, however, is ruled by the Congress party, which is also in power in Delhi. The achievement of the Reddy brothers, from the city of Bellary in Karnataka state, was to cosy up to powerful leaders in both the BJP and the Congress.
"The loot enriched the two largest political parties in India," said Thakurta.
However, the death of an Andhra chief minister in a helicopter crash in 2009 seriously damaged the Reddys' links with the Congress party.
