In early May 2025 a special CBI court in Telangana’s Nampally convicted former Karnataka minister and BJP MLA, Gali Janardhan Reddy and three others in the long-running Obulapuram Mining Company (OMC) case. The court sentenced each to seven years of prison and fines of ₹10,000 per person, plus a ₹1 lakh fine on the company. This verdict, delivered nearly 14 years after the first charges were filed, finally holds the Ballari mining baron to account for massive iron-ore theft on the Karnataka–Andhra Pradesh border. (The prosecution had shown illegal mining from 2007–09 that cheated the state treasury of an estimated ₹884 crore.) While the punishment is a victory for the victims of the ballari mining mafia, it should be noted that justice is painfully overdue and that others implicated have largely escaped sanction.
Ballari’s descent into ecological and social chaos began with the 1993 National Mineral Policy, which opened the gates for private mining. With global demand surging, especially from China, iron-ore prices skyrocketed. The Karnataka State Mining Policy of 2000 further incentivized export-oriented mining. In this climate, political-business nexuses like that of Janardhan Reddy flourished. Forests were encroached, royalties underpaid, and regulations flouted. By 2010, iron-ore extraction in Ballari went to 42 million tonnes a year.
The Lokayukta report of 2008, led by Justice Santosh Hegde, laid bare the corruption: mining in prohibited areas, systemic collusion among bureaucrats, and massive underreporting of extracted ore. Air and water pollution soared, fertile lands were choked with red silt, and forest biodiversity was destroyed.
The Ballari saga exposes the rot within India’s ruling class. Successive governments, be it BJP, Congress, or JD(S), enabled this loot. While some leaders were briefly jailed or forced to resign, most returned to public life with ease. Janardhan Reddy floated a new party in 2022 and won an assembly seat in 2023 despite dozens of pending cases.
Ballari’s crisis is not just about individual corruption; it is a structural problem rooted in the alliance between the state and capital. State-owned NMDC (National Mineral Development Corporation), the national mining PSU, sold ore at throwaway prices, enabling private profiteering. Regulatory agencies turned a blind eye to violations. In 2024, the Modi-led central government approved Kudremukh Iron Ore Company Ltd. (KIOCL) to begin mining in Devadari Hills in Sandur, a sensitive forest area, despite objections from the forest department.
This project, backed by Union Steel Minister H.D. Kumaraswamy, proposed felling 99,000 trees and clearing 992 acres of forest. While the Karnataka government temporarily halted the project following public outcry, it showed how governments across party lines continue to prioritize industrial profits over environmental and human health. Whether it is Ballari, Nagarhole, Bastar, Hasdeo Arand, or Great Nicobar, the pattern is clear: displace the people, loot the resources.
But Ballari is not only a tale of exploitation. It is also a site of struggle and resistance. Following the 2011 Supreme Court-mandated mine closures, over 25,000 workers lost their livelihoods. Yet the promised rehabilitation has remained mostly on paper. Massive funds, running into thousands of crores, lie unused. In October 2022, former mine workers under the banner of Ballari Zilla Gani Karmikara Sangha (affiliated to AICCTU) undertook a 70 km march from Sandur to Ballari. They demanded housing, jobs, and compensation. In May 2025, another mass protest was held where hundreds rallied in Ballari, demanding justice. Their demands include implementation of CEPMIZ (Comprehensive Environment Plan for Mining Impacted Zones) and CEPMIS (Comprehensive Environment Plan for Mining Impacted Sites) schemes, which were meant to ensure rehabilitation and re-employment.
These protests are a reminder that the people of Ballari are not passive victims. They continue to resist the loot of their land and lives, and demand accountability from those in power. Their struggle is not just for jobs but for dignity, justice, and a future where communities, not corporations, control resources.
