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Regular-article-logo Friday, 27 June 2025

Lease axe on mining majors

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SUBHASHISH MOHANTY Published 09.10.10, 12:00 AM

Bhubaneswar, Oct. 8: The state vigilance has recommended cancellation of mining leases of two major mining firms of the state. The vigilance order comes as the owners of the mining firms — Indrani Patnaik mines and S.N. Dasmohapatra mines — have been accused of lifting ore worth Rs 1,063 crore without paying royalty to the state between 2006 and 2008.

“We have already sent our advice to the government and the mines director is supposed to take necessary follow-up action,” said vigilance director Anup Patnaik. He said the firms were engaged in illegal activities, with one of them excavating ore even after their mining leases expired.

“Though Indrani Patnaik mines had given in writing that it was not involved in illegal mining, it was found during inspection that it had been excavating ore from outside their lease area,” he added.

The Rs 10,000-crore mining scam was unearthed in July 2009 after Opposition parties alleged that illegal mining was on at the pits of Ram Bahadur Thakur (RBT) mines in Keonjhar. That move opened a Pandora’s box with allegations of illegal mining being made against several other mine owners and the government was forced to order a vigilance inquiry into the scam.

With an ever-increasing demand for action against the guilty, the mines department launched an exercise to verify the papers of mine owners, a majority of whom had been operating without requisite clearances. The authorities were forced to stop operations in about 300 mines.

Vigilance sources said the Indrani Patnaik mines had excavated about 2.62 lakh metric tonnes of iron ore illegally between 2006 to 2008. The excavated ore was exported and the loss to the state exchequer amounted to Rs 1,008 crore. Similarly, S.N. Dasmohapatra set the exchequer back by Rs 55 crore by exporting 53,000 metric tonnes of manganese lifted from the mines of Rambahadur Thakur Mining Limited (RBTL).

In September 2009, vigilance lodged cases against both the mines under various sections of Prevention of Corruption Act and the Mining Mineral Development Act. Though both the owners managed to get bail from the court, vigilance sources said chargesheets would be framed against them soon.

“We have already got the vigilance report which is being examined. The department will initiate proceedings against the mine owners and issue showcause notices to them,” said steel and mines minister Raghunath Mohanty.

The government has also allowed the vigilance to file chargesheets against seven government officials besides those of RBTL.

Indrani Mines has 106.1127 hectares of mining lease in Keonjhar district’s Mahaparbat hills. The state government had recommended the lease in March 1998, which was later sanctioned by the Centre.

“We have got the necessary sanction from the government. We will soon submit the chargesheet,” said vigilance director Anup Patnaik.

The chargesheets, according to Patnaik, would be filed under sections 13 (1-D), 13 (2-D) of Prevention of Corruption Act, 420 IPC, 120 (B) Conspiracy and 21 (1) and 23 (2) of Mining Mineral Development Act. The officials concerned are former mines directors R.N. Sahu and Sashadar Sahu, mines joint directors Ganesh Mohanty, Debendra Mishra, and Madan Mohan Biswal and mining officials Routray Murmu, Ramesh Mallick and Suresh Chandra. Chargesheet will also be filed against RBTL directors Manish Mohan Sharma and Debendra Sharma.

According to sources, chargesheets would also be filed against Shakit Ranjan Das and two others, who had undertaken mining activities on the strength of a power of attorney from RBTL. The RBTL allegedly mined ore without necessary mining lease and also made exports. Vigilance sources said that RBTL and S.K. Dasmohapatra mines carried out mining and transported minerals from Joda in Keonjhar district. They also allegedly violated the Forest Act.

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