CBI has established that the arrested mining mafia czar Mr. Gali Janardhan reddy and his brothers have collected more than Rs.1000 Cr towards his Mamool from the fellow miners in the Bellary mining area, in addition to the illegal mining he has undertaken in the border areas of AP and Karnataka.

According to sources in the CBI, his interrogation revealed that he had collected this amount as his private royalty from nearly 300 small miners in a matter of three years.

Gali forced the other miners to sell 70 per cent of their iron ore production to his company at Rs.700 per ton despite the prevailing market rate of Rs. 5000 per ton. This way he collected more than 28 lakh tonnes of iron ore from them which amounted to Rs 1000 Cr. The CBI came to know that he got the quantity from the fellow miners between 2007 and 2010.

Along with the iron ore quantity collected from others, Gali brothers sold off the illegally produced iron ore by his Obulapuram Mining Company (OMC) to China at Rs.5000 per ton.

As a matter of strategy, Gali showed on records that he sold iron ore to foreign players at Rs.700 per ton but asked them to make the balance amount in shape of investments into his Brahmani Steels. Because of this money laundering activity, the EC also booked cases against him and his company.

Most of the small miners are now turning witnesses into the cases booked against the Gali brothers.