New Delhi Terming the mining lease of Karnataka-based Ramgad Minerals and Mining illegal, the ministry of environment and forests (MoEF) has temporarily suspended the stage-II clearance given to the firm's mines in Bellary and decided to issue the company a showcause notice on why it should not be cancelled. On September 9, 2010, former environment minister Jairam Ramesh gave Ramgad Minerals’ mines in Karnataka the much-needed stage-II clearance or final approval for iron-ore mining on 335.04 hectare of forest land without obtaining the compliance report and recommendations of the state government. On March 16, 2011, however, the Karnataka government wrote to Ramesh, saying the approval was “contrary to law” since it could be given only after the state recommended such a clearance. As per the rules of the Forest Conservation (FC) Act, under which the approval was given, the final approval cannot be granted until the conditions stipulated in the in-principle approval are met. The state government is required to submit a certificate stating that the stipulated conditions have been met and forestland can be diverted. “This ministry is also of the view that grant of stage-II approval under the Forest Conservation Act, 1980 accorded by this ministry, without recommendation from the state government of Karnataka is also flawed,” the forest division of the ministry said in an order dated October 12, asking the company to explain within seven days and keeping in abeyance the final order till then. The ministry said renewal and transfer of the mining lease to Ramgad Minerals in 1986 was illegal due to violation of FC Act and stage-II clearance was granted bypassing the state government. Mining is a non-forest activity as per the Forest Act and the renewal of mining lease made by the state without the prior approval of the Centre is void. In fact, Karnataka transferred the non-existing mining lease from Dalmia Cements to Ramgad Minerals. In 2004, the Karnataka High Court quashed the state government's order to transfer the mining lease. The ministry granted in principle approval (stage-I) to the firm in 2006. “Therefore, transfer of the mining lease was in contravention of the FC Act as well as the MMDR Act,” the order said. The 335.04-hectare land comprises 134.5 hectare already broken, 81.5 hectare to be broken, 3.6 hectare for roads and 115.44 for afforestation.