Basavaraj Rayareddy claimed that the state loses over ₹400 crore every year in uncollected royalties due to rampant illegal sand mining and collusion between officials and the sand mafia.
Published Oct 22, 2025 | 8:25 PM ⚊ Updated Oct 22, 2025 | 8:25 PM
Rayareddy has named over 10 officials in his letter, demanding immediate action and transfers.
Synopsis: Karnataka Chief Minister Siddaramaiah’s Economic Adviser Basavaraj Rayareddy has alleged an annual loss of revenue of nearly ₹400 crore due to collusion between the “sand mafia” and government officials. Naming several officers, he accused some of remaining posted in the same regions for over a decade, thereby undermining the department’s credibility. Leader of Opposition and BJP MLA R Ashoka described the allegations as “shocking” and demanded answers on why no action has been taken.
Basavaraj Rayareddy, the Economic Adviser to Karnataka Chief Minister Siddaramaiah, has made serious allegations of large-scale corruption involving the “sand mafia” and government officials.
In a letter to the Chief Minister dated 18 October, Rayareddy claimed that the state loses over ₹400 crore every year in uncollected royalties due to rampant illegal sand mining and collusion between officials and the sand mafia.
“Corrupt officials and the sand mafia are hand in glove, looting the state’s natural resources. If we can efficiently collect income tax and GST, why not ensure royalty collection on sand?” the letter states.
Rayareddy further alleged that 100–150 truckloads of sand and jelly stones are being illegally transported every day from areas around 85 km from the Tungabhadra River. He estimates that nearly 200 people are involved in the illegal trade, many of whom allegedly have the backing or direct involvement of Mines and Geology Department officials.
Rayareddy has named over 10 officials in his letter, calling for immediate action and transfers. Among those named is Senior Geologist Pushpalatha.
The advisor to the Chief Minister noted that some officers have been posted in the same regions for over a decade, which he says has contributed to the department’s damaged credibility and failure to act.
As part of his proposed solutions, Rayareddy has called for the formation of a task force led by the local Deputy Commissioner to monitor illegal mining activities and crack down on the sand mafia.
He said he intends to raise the issue with CM Siddaramaiah, Urban Development Minister BS Suresh, Mines and Geology Minister SS Mallikarjun, and Deputy Chief Minister DK Shivakumar to push for a coordinated statewide effort.
Leader of Opposition and BJP MLA R Ashoka termed the allegations “shocking” and claimed that it was evidence that the state was “No. 1” in corruption.
“CM’S OWN ADVISOR EXPOSES ₹400 CRORE SAND MAFIA SCAM! The truth can no longer be hidden. After admitting Karnataka is bankrupt due to reckless guarantee schemes and claiming Karnataka is the No.1 state in corruption, CM Siddaramaiah’s Economic Adviser and senior Congress MLA Shri Basavaraj Rayareddy, has now blown the lid off the sand mafia-politician nexus!” he wrote in a post on X on 21 October.
Ashoka urged the government to answer several questions, including why no action has been taken despite the CM’s adviser knowing of the activities, who is protecting the mafia, and where the ₹400 crore lost annually is going.
