Bhubaneswar, July 27: A suspended BJD MLA today came up with evidence to show that goons enjoying political patronage were controlling mining operations in the mineral-rich Keonjhar district.

Bari MLA Debashish Nayak, who had been suspended sometime ago for alleged anti-party activities, said the goons had almost taken control of the mining areas, forcing mining companies to hand over operations to them. The former minister, who had once been close to chief minister Naveen Patnaik, cited a letter of the steel and mines department to support his allegations.

The development prompted the state government to nominate P.C. Patra, deputy director of mines, as convenor of the committee constituted to make an investigative study of the financial transactions of the lessees and the contractors to find out prima facie violations, if any. The panel would visit the Joda mining circle and submit a report by August 10.

Nayak demanded that the mining scam should be handed over to the CBI for probe, thus echoing the Opposition’s sentiments over the issue. Three days ago, Union minister for chemical and fertilisers Srikant Jena, too, demanded a CBI inquiry into the mining scam. However, the state government has refused to order a CBI inquiry citing the ongoing vigilance probe.

Earlier, Nayak had written a letter to the chief minister stating that in Keonjhar, mining was being controlled by a private mining company in collusion with a local politician. “A local BJD leader had also colluded with them and all of them looted the minerals. However, the state government remained silent on the issue. Even the work of Tisco had been affected for three months,” Nayak said, adding that the company enjoyed the patronage of a BJD leader.

Nayak cited the letter of the deputy director of mines, Joda circle, to the director of mines to prove that there had been rampant corruption. The deputy director of mines said he had verified documents including details of financial transactions between the lessees and the contractors, payments received in the bank account of the lessee, transport charges, payments made to employees and details of profits and loss accounts.

The deputy director’s letter stated that on verification of the documents, it was observed that the said company had been given work order by Tisco Limited, KJS Alluwallia, RP Saoo, Tarini Minerals, Serajuddin and Co and Indrani Patnaik for raising of iron ore and other allied activities.

“In the work order, the rate quoted by the contractor is much more than the price quoted by other contractors. It is 1.70 per cent of the sale of price of the ore in case of Tisco Ltd, 35 per cent of the sale of price of the ore in case of Kalinga Mines Corporation, 14 per cent to 25 per cent of the sale of price of the ore in case of KJS Alluwallia, 33 per cent of the sale of price of different grade of ore in case of RP Sao Guali, 41 per cent of sale price of the ore in case of Tarini Minerals Pvt (L) and 41 per cent of sale of price of ore in case of Serrajuddin and Co which seems to be abnormal,” the deputy director of mines has written.

Similarly, the mining activities undertaken by the company were also abnormal.

Claiming that the chief minister had been kept in the dark about the matter, Nayak said the deputy director of mines had also recommend that the financial transaction might be referred to a group of CAG empanelled chartered accountants. “I will write another letter to the chief minister on this issue,” said Nayak.

The deputy director said the rules pertaining to excavation had also been violated in Keonjhar. In many cases, all laws were violated.

Steel and mines minister Raghunath Mohanty, who had earlier rejected a CBI probe into the mining scam, said: “A committee has been formed to look into the issue.”