Bhubaneswar, Oct. 7: The Central Vigilance Commission has set the cat among the pigeons by asking the CBI to probe the losses caused to the railways by iron-ore miners passing off their export consignments as those meant for domestic consumption.

The racket has been most active in the mining areas of Orissa and Jharkhand with a single company having reportedly cheated the railways of more than Rs 750 crore over three years as freight charges for domestic consumption were much less than those for export consignments. In the name of making exports, the company concerned had been feeding one of its manufacturing units in a neighbouring state.

With the needle of suspicion pointing towards Orissa, the state government, which is already reeling under a multi-crore mining scam, has scurried to ready its defences. Steel and mines minister Raghunath Mohanty asserted that steps had been taken to plug loopholes in the system and a high level committee has been constituted under the chief secretary to stop illegal movement of minerals.

Sources said that 35,62,235 tonnes of iron ore had been exported from the state this year fraudulently and even though investigations as of now point towards only one company the activities of all 200 companies engaged in the export of iron ore ought to be investigated.

Sources said that deputy director, mines, Umesh Chandra Jena, had inquired into the charges but a much deeper probe was called for given the scale of the scam.