The guilty, named in 2008, got away

Mining mayhem: Govt has ignored Lokayukta report submitted three years ago

The mismatch is apparent. While the Lokayukta in his report submitted in December 2008 pointed out several shortcomings, illegalities and irregularities in mining business, and had recommended specific corrective measures, the state government’s reform initiatives have been only general in nature.

Justice Hegde in his report dealt with illegality and irregularities in grant of mining leases, protection of forest land from illegal mining, grant of stockyard licence, illegality in transportation of minerals and spelt out measures to curb damage done to environment and water bodies during ore transportation.

Morever, the report had named the leases where illegal mining or encroachment of forest land had taken place and had recommended the immediate cancellation of their licences.

Above all, Justice Hegde had held former chief minister N Dharam Singh, two former directors of the department of mines and geology, M Basappa Reddy and Gangaram Baderiya, of having committed misconduct and having caused financial loss to the tune of
Rs 31.01 crore by permitting illegal transportation of iron ore.

The Lokayukta had held that the persons were liable for reimbursement of the loss caused to the state. He had also made a separate recommendation under Section 12(3) of the Karnataka Lokayukta Act to initiate appropriate proceedings against Singh to recover the loss caused by him to the state.

That’s not all. The Lokayukta had named nine senior officials including five IAS officers and an IPS officer for causing loss to Mysore Minerals Limited (MML) and had recommended recovery and disciplinary action against them.

Two and half years down the line, the government is yet to initiate action against any of them.

On its part, the state government went to the town listing out “reforms” to curb illegal mining as one of its major achievements. It has also often said that its hands are tied because many mining related cases are pending before court.

A new mining policy was launched, under which issue of fresh leases and renewals in respect of iron ore are allowed only if there is value addition within the State.

But the Belekeri port incident last year indicated that the reform measures had not yielded the desired results. Forest officials seized eight lakh metric tonne of iron ore being illegally transported. Five lakh tonne of this ore, stored at Belekeri port went missing. The CID is investigating the case.

Embarrassed to the core, the government had to take some steps. It banned export of iron ore and also streamlined the issue of transport permits.

Integrated check-posts were introduced in various locations to ensure better coordination of departments like mining, forest, commercial taxes, transport and PWD.

The government also discontinued issue of permits to ore traders to set up stockyard.

The issue also reached the Supreme Court with the Samaj Parivarthan Samudaya filing a petition regarding the alleged illegal mining and other related activities in forest areas.

The Forest Bench of the Supreme Court referred the matter to the Central Empowered Committee (CEC).

The CEC, after several visits to the State, slammed the state government for allowing illegal mining and not acting on the recommendations of the Lokayukta. The panel recommended revocation of mining leases and environmental clearances granted to the indicted mining companies.

An observation by the CEC in its report sums it all. “After filing the report of the Lokayukta, practically for two and a half years, no effective action has been taken by the state of Karnataka ......It has taken more than two and half years for even seeking legal opinion.... This is simply not acceptable and indicates the the extent to which the rot has set in and vested interest have a hold on the government,” the CEC stated in its report.

The time line

March 12, 2007: Coalition govt refers illegal mining in State to Lokayukta; Scope of investigation- Jan 1, 2000 - July 22, 2006

Sept 9, 2008: Scope of investigation extended till date

Dec 18, 2008: Lokayukta Santosh Hegde submits interim report to govt

Dec 2008: State Govt announces new mining policy

July 14, 2009: Govt submits Action Taken Report to Lokayukta Hegde; he dubs it as “Action To Be Taken Report”

July 19, 2010: Scope of investigation extended till date

July 28, 2010: Ban on export of iron ore imposed

Feb 25, 2011:  On a petition by Samaj Parivarthan Samudaya, Supreme Court refers allegations on illegal mining & related activities in forests of Karnataka to CEC

April 15, 2011: CEC submits five reports to SC; Unhappy with state’s initiatives to curb illegal mining

April 20, 2011: State Govt files its affidavit to SC on measures taken to curb illegal mining & action taken on CEC reports

May 6, 2011: SC expresses dissatisfaction with the report of the CEC on 99
mining leases; orders setting up of the new team to conduct fresh survey