File picture of a mine in Orissa

Bhubaneswar, Sept. 30: The central mining tribunal has set aside the state government’s order refusing mining lease to Ram Bahadur Thakur Ltd (RBTL), a company facing allegations of illegal mining, in the Katasahi areas of Keonjhar district.

The verdict of the tribunal is being seen as a blow to the state government that had turned down the company’s request for a mining lease over an area of 96.568 hectares after “careful consideration” on July 20, 2010. The state government had felt that RBTL was not a “credible party” and the grant of mining lease in its favour would not be in the best interests of efficient mineral administration.

The verdict is bound to embarrass the ruling Biju Janata Dal considering that the multi-crore mining scam, presently being investigated by the Vigilance department, came to surface following allegations of illegal mining in the RBTL’s area of operation in Keonjhar district.

The scale of the loot in the state’s mineral rich-belt became apparent after the Vigilance conducted raids against a number of mining companies and registered a dozen cases. Some senior officials of the mining department were also booked.

However, the Opposition continues to demand a CBI inquiry into the scam. Orissa High Court has also been moved in this regard.

Steel and mines minister Raghunath Mohanty appeared unfazed by the tribunal’s verdict which, he said, would be challenged by the government. “We will move either the high court or the Supreme Court against it after seeking legal opinion,” he said adding that the government was fully justified in refusing the mining lease to RBTL as it had indulged in illegal mining, which was inquired into by the vigilance department.

The minister, who refused to speculate on the kind of impact the verdict would have on the ongoing inquiry into the mining scam, also alleged that the company had failed to submit forest and environment clearance and the mining plan as and when required by the government.

The RBTL had applied for the lease on September 25, 1991, and was asked in 1996 to submit a mining plan within six months and also to take steps to obtain approval of the Union ministry of environment and forests before the grant of a mining lease.

However, the government’s order refusing the mining lease said that the RBTL had not obtained forest and other statutory clearances till the date of the order.

Besides, it came to the government’s notice that the company had indulged in illegal mining.

The tribunal set aside the government’s order observing that the conclusion questioning the credibility of the company was not based on objective assessment of facts.