SPS takes exception to CEC nod for 16 firms to resume mining

  • 29/08/2012

  • Hindu (New Delhi)

It also objects to the classification of mines under Category A Questions are being raised over the recommendation of the Supreme Court-appointed Central Empowered Committee (CEC) allowing mining by 16 companies among which are those embroiled in alleged irregularities. The Samaj Parivartan Samudaya (SPS), petitioners in the illegal mining case in the Supreme Court, has taken exception to the CEC recommendations and to the classification of the mines under Category A (consisting of mines not linked to any irregularity). The SPS submitted details of alleged irregularities by four of the 16 companies and, suspecting something similar, demanded investigation of the remaining leases. Earlier hearing During an earlier hearing, the Forest Bench of the Supreme Court refused to allow resumption of mining activity “unless there is statutory compliance and full implementation of the Rehabilitation and Reclamation (R&R) plan prepared by the Indian Council of Forestry Research and Education (ICFRE)”. The court also asked the SPS to submit an updated version of its Interlocutory Application. Following this, the SPS made its submissions on August 20 and 24 in which it listed out irregularities allegedly committed by four mining companies. The four mining companies are R. Praveen Chandra Mine (ML2661) Varalakshmi Mining Company (ML2611), RBSSN (ML2524) and Mysore Minerals Limited (MML). The CEC had, in its April 20 report, recommended a CBI probe into the operations of R. Praveen Chandra Mine. This company was alleged to have made payments to the sons of the former Chief Minister B.S. Yeddyurappa, quid pro quo for a mining lease, according to Vishnu Kamath, one of the petitioners. DC’s recommendation The Deputy Commissioner, Bellary, had recommended cancellation of lease held by Varalakshmi Mining Company because of irregularities allegedly committed by it, as per the findings of the M.B. Shah Commission. The Deputy Commissioner felt that it was necessary to initiate a criminal case against the company for “defrauding the government”, said SPS chief S.R. Hiremath. Another company, RBSSN, has “violated” Forest (Conservation) Act, according to the Principal Chief Conservator of Forests. It is also facing illegal mining charge, the SPS has stated in its submission. Mysore Minerals Ltd. (MML), a State government undertaking, has been accused of misusing permits by classifying iron ore as waste. This was then sold to companies and individuals at rock bottom prices which the buyers then sold at enormous profits, the SPS has alleged. MML, in the process, violated the Mines and Minerals (Development and Regulation) Act 1957 and Mineral Concession Regulation Act 1960, the SPS said. Sesa Goa, an industry major, which is being recommended for mining under Category B is facing a charge of exporting iron ore from Krishnapatnam port after the government ban on transportation of ore. Its alleged illegalities have found a place in the Lokayukta report and in a report by the Ministry of Corporate Affairs which investigated the alleged fraud committed by the company in “under-invoicing of iron ore”. (Category B companies are classified as those facing “irregularities” charge on minimum counts.) ‘Dubious records’ “We are questioning the classification of companies with dubious records under Category A. There is no question of negotiating on Categories B and C, and their licences should be cancelled. The CEC, which had originally proposed punishment for companies which had committed the alleged illegalities, did a ‘u’ turn in its final report,” said Mr. Kamath. “The CEC is under the direct scanner of the court. We hope that the CEC will correct the mistakes committed in the last six months,” Mr. Hiremath told The Hindu . The case pertaining to the classification of mines will be heard on August 30. ‘SPS has submitted details of alleged irregularities by four of the 16 companies’ ‘We hope the CEC corrects the mistakes committed in the last six months’