The apex court on Monday stalled all the mining operations of Reddy brothers? owned Obulapuram Mining Company in the Ananatpur district of Andhra Pradesh on allegations of encroachment of reserve forest areas.

A Bench comprising Chief Justice KG Balakrishnan and Justice Deepak Verma in its interim order said: ?There is allegation that the mining companies have extended mining in the forest areas. The mining operation is stayed.?

The Bench also set up a high-level committee headed by Survey of India to verify allegations of largescale encroachment by OMC.

The panel, which will also have members from the revenue, mining and forest departments of the Andhra Pradesh, will demarcate the areas of each of the mining companies according to the lease granted to them.

To counter stiff opposition from the Reddy brothers not to stop the mining activities, Justice Verma observed that ?We want to save this earth?You can not mine in forest areas, You have a right to mine in leased area.?? While fixing April 9, as next date of hearing, the Bench directed the team to file its interim report within two weeks before the Supreme Court. Attorney general Gulam E Vahanvati, appearing for the Centre said, ?The company (OMC) has encroached reserve forest land. It has changed the boundaries.? Even the Supreme Court-appointed Central Empowered Committee (CEC) in its report of November 19, 2009 had alleged that illegal mining activities were going on in the reserve forest areas, he added.

While pleading for allowing the mining activities, Rohatgi said the company would extend all support to the survey team to carry on the demarcation procedure.

Senior advocate Mukul Rohatgi appearing for OMC said, ?I have a right to carry on mining. I have a valid lease. A simple private dispute between two companies over the border has become a public issue. ?

While pleading for allowing the mining activities, Rohatgi said the company would extend all support to the survey team to carry on the demarcation procedure.

Senior Advocate KK Venugopal, appearing for Andhra government, argued that since November 26, 2009, OMC had transported 2,50,000 tonne of iron ore to Karnataka which would be worth crores of rupees.

The mine is just 40 meters from Andhra Pradesh and Karnataka border and, the company was carrying the ore to the neighbouring state through a private road, Venugopal added.

The Andhra Pradesh government had challenged the Andhra Pradesh High Court?s judgement that allowed Karnataka tourism minister G Janardhana Reddy-owned OMC to continue operations despite its directions for closure till a survey is conducted.

The high court had suspended the operations of the Ministry of Environment and Forests? notification dated November 30 that asked the mining companies to stop activities in Anantapur district of the state till a survey to demarcate mining areas was completed on six mines including that of OMC.