Tuesday 15 January 2013

Fresh plea for probe into Karnataka miners

CBI/SIT probe urged against alleged violators, including Sesa Goa, Mysore Minerals

Mahesh Kulkarni / Bangalore Jan 15, 2013
Business Standard
A few mining companies cleared by the Supreme Court to resume mining in Karnataka might have more challenges in store. The primary petitioner in the public interest litigation against illegal mining in the state has filed a fresh application before the apex court that mining be suspended, owing to the alleged violations of various norms.

Samaj Parivartan Samudaya (SPS), the Dharwad-based non-governmental organisation fighting illegal mining in Karnataka, has urged the court to direct the Central Bureau of Investigation ( CBI) or a special investigation team (SIT) to probe the alleged violations by miners. The leaseholders for these mines, which fall under the A, B and C categories, include Sesa Goa, Mysore Minerals, R Praveen Chandra, Varalaxmi Mining, RBSSN, Matha Minerals and Latha Mining.

SPS has appealed for the suspension of mining operations by the nine leaseholders named in the interlocutory application and a directive to the central and Karnataka governments to cancel the leases of lessees found to have carried out illegal mining. It also sought the state government be directed to conduct an assessment (along with independent experts and agencies) of the loss to the public exchequer from illegal mining by leaseholders and institute appropriate proceedings to recover the amount.

On September 3, 2012, the Supreme Court had lifted a ban on mining activity for 18 Category A mines, on the basis of a report by a Central Empowered Committee (CEC) dated August 29.

The SPS interlocutory application stated Sesa Goa was involved in irregularities to the tune of about Rs 1,000 crore, as shown by a report by the Serious Fraud Investigation Office. “Categorisation of the leases has been made on the basis that those who have not made any encroachment have been kept in Category A. But this ignores the very vital fact that those in Category A have committed other serious illegalities and crimes in an environment of lawlessness that prevailed in Karnataka, causing loss to the health, environment and the public exchequer, do not deserve to be re-opened,” read the application.

The petitioners also brought to the notice of the court a recent letter by the director of mines and geology, Karnataka, to the CEC. In the letter, the director had pointed to violations by different companies under categories A, B and C. “It is vividly clear from this correspondence that the CEC has looked at the violations in the mining lease process of the individual leaseholds, while not examining the lease holding company as an integrated whole. Some of these companies are also involved in transport and export of ores from questionable sources. These companies are involved in serious illegalities and gross violations of lease terms and conditions in other mining leases found by the joint survey team,” the petitioners said.

In the letter, the director had named Mineral Enterprises (ML No.2346), B Kumargowda (ML No. 2516), VESCO (ML No. 2296), VESCO Stockyard, KMMI (ML No. 2075) and Zeenath Transport (ML No. 2547). As one of the leases of Mysore Minerals was under Category B, it was ironical all these leases were listed under Category A and permitted to resume mining activity pursuant to the report of the CEC, the application said.

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