Even as Union minister of state for chemicals and fertilisers Srikant Jena accused Orissa chief minister Naveen Patnaik of colluding in a mining scam that caused a loss of Rs 4 lakh crore to the state exchequer, the state steel and mines department on Tuesday said it has sent demand note at least 103 mining leases imposing penalty of around Rs 68,000 crore for excess extraction of iron and manganese ore. The show cause and demand notices to companies such as Tata Steel, Essel Mining, Rungtas and Indrani Patnaik for extracting iron ore and manganese more than the permissible limit set by the authorities came almost three years after the alleged mining scam broke out in the state. Incidentally, the order came when the Justice MC Shah Commission is visiting the state to probe the alleged scam. Show cause notices have been issued in Joda mining circle of Keonjhar and Koida circle of Sundargarh district, which have 90 per cent of the iron ore and manganese. There are 14 mining circles in the state. State mines secretary Rajesh Verma said the mining firms have been issued notices under Section 21(5) of Mines and Minerals (Regulation and Development) Act for violations between 2000 and 2010. “We have issued show cause notices, they will present their cases and then the course of law will be followed,” he said. The penalty would be recovered within 7 days of the notice issued by the mines department. Satyabadi Sahu, who looks after the Tata Steel’s mining in Joda circle of Keonjhar said as per the new MC Rules, the company has not violated any of the conditions imposed by the state government. “We would surely challenge the order,” Sahu said. Essel Mining officials refused to comment. Rajiv Mohanty of Eastern Zone Mine Owners Association said what happened in Orissa was over production, not illegal mining. “None of the leaseholders mined outside their area. So how can it be illegal mining?” he asked.