The Andhra Pradesh government headed by chief minister N Chandrababu Naidu is reportedly preparing for cancelling limestone mining leases of Bharathi Cements, a company owned by the family of YSR Congress party president and former chief minister Y S Jagan Mohan Reddy.
The proposal, which has been on cards for the last one and half years, has now reached a critical stage.
The mining department is said to be initiating steps to cancel the mining leases of Bharati Cements citing alleged legal violations.
The leases were granted a couple of months before the 2024 elections.
The then Jagan government issued G.O. No. 4 on February 2, 2024, allocating 235.56 acres of limestone reserves in three villages of Kamalapuram mandal in Kadapa district to Bharathi Cements for a period of 50 years.
The Mines Department issued the show-cause notice on December 11, 2024, alleging irregularities in the allotment of limestone mining rights and giving the company 14 days to respond.
In response, Bharathi Cements submitted its detailed explanation on January 5, 2025, questioning the very basis of the government’s notice.
Bharathi Cements argued that the leases were granted strictly in accordance with rules during the tenure of the previous Jagan-led government, and asked how the same leases could now be termed illegal.
The company also alleged that the notices were issued with a predetermined intention to cancel the leases, calling such action unlawful and contrary to principles of natural justice and constitutional governance.
Bharathi Cements demanded that the government immediately withdraw the show-cause notice and provide an opportunity for a personal hearing.
However, the Mines Department reportedly made it clear that the notice would not be withdrawn and insisted that the company must justify why the leases should not be cancelled under the provisions of the MMDR Act, 1957.
Officials have invoked Section 10(A)(2)(C) of the Mines and Minerals (Development and Regulation) Act, 1957, under which leases may be annulled if found to be inconsistent with statutory requirements.
According to sources, after reviewing the company’s reply, the Mines Department Director has recommended cancellation, stating that the leases were obtained in violation of the Act.
Sources indicate that the government is also considering cancellation of similar mining leases allotted to other major cement firms such as ACC and Ramco Cements, suggesting a wider policy review of mining allocations.
