Bangalore: An IFS Official S. Muthaiah who is alleged to have let G. Janardhan Reddy owned Associated Mining company (AMC), illegally explait valuable iron are in Bellary forests, has been arrested by CBI officers on Monday, along with a former deputy director of Mines department working at Hospet, S.P. Raju.

Both the accused persons (Muthaiah and Raju) were produced before the CBI special court judge B.M. Angadi, and an request by the enquiry team, the too detainess were taken under CBI custody upto May 10, for further investigation.

They are likely to be taken to Bellary, Hospet, and Sandur, where the illegal mining was done. The accused are in Ganganagara CBI office,for further questioning.
Both ex-officials were loyal to G.J. Reddy, who is under detention, and brought from Chanchalguda prison in Andhra, to Bellary.

Muthaiah was maintained in Bellary for long years by GJ Reddy against the Government. Wish to shift him out. Muthaiah faces the charge of not seeking the forest development cess from AMC on iron are taken out.

He let Reddy take a permit in 2 days to transport 80,000 tons of iron are illegally from Bellary are mines.

Even after expiry of mining period, Muthaiah issued permits to take out loads in 900 lorries to transport iron are for export. Raju also faces similar charges on transportation of illegal are.