Vijayawada: The state government has issued show-cause notices to two limestone mining leases held by Bharati Cement Corporation Limited, in which Y S Bharati, wife of YSRCP president and former chief minister Y S Jagan Mohan Reddy, is a director. The company has been asked to submit its explanation within 15 days.

The action follows scrutiny of leases granted during the previous YSRCP government despite clear central guidelines mandating auction-based allocation for major minerals such as limestone.

Amendments to the Mines and Minerals (Development and Regulation) Act in 2015 and 2021 require that all such leases be awarded only through e-auction.

Contrary to these provisions, the previous government granted two limestone leases to Bharati Cement through the application route in February 2024, barely weeks before the model code of conduct for the general elections came into force.

Originally, Raghuram Cements Limited applied in 2008 for two limestone leases, covering 509.18 acres in Kamalapuram mandal and 235.56 acres in Erraguntla mandal of YSR Kadapa district, and was issued a Letter of Intent (LoI) by the then government. However, leases can be executed only after securing approved mining plans and environmental clearances, which were not obtained within the stipulated period. It later emerged that the LoI was transferred to Bharati Cement, a fact that was not formally disclosed to the government. Despite the subsequent central amendments making auction mandatory, the YSRCP government proceeded to regularise the leases.

Similar orders were issued to ACC Cement in September 2023 for a limestone lease spread over 997 hectares in Mylavaram mandal of YSR Kadapa district, and to Ramco Cement (formerly Madras Cement) in March 2024 for a 267.30-acre lease in Jaggayyapet mandal of NTR district.

When Bharati Cement, ACC and Ramco submitted their mining plans, the proposals were examined by the Indian Bureau of Mines (IBM) under the Union Ministry of Mines. The IBM raised objections, questioning how leases granted in 2023–24 were allotted through applications despite the statutory requirement of auction, and formally flagged the issue to the Centre.

The present NDA government is now reviewing all such leases granted in deviation of Central law, signalling possible further action based on the explanations received.