Mining kickbacks: Some names ring a bell

U V Singh report mentions how a firm splurged money on mysterious beneficiaries

The documents seized from Madhukumar Varma, 24, the managing partner of the firm, Madhushree Enterprises, throws light on the contacts, the lifestyle and the extravagant spending by those involved in mining business. Interestingly, the spending or the amount given by Varma (also referred as MKV in the report) to his contacts are well documented in his computer.

Under the head ‘Amt Given out’, an entry made on 12/9/10 mentions a payment of ‘0.19’ (meaning ~19,000) towards ‘Atria bill’ on August 31, 2010. In the brackets is mentioned ‘Nithin Gadkari sir friends’. The entry appears to refer to bills run up at a hotel, but does not mention the name of the person who enjoyed the hospitality.

The report mentions several persons whose names are mentioned but not any other detail, or for that matter the purpose for which they were paid. There is no denomination mentioned against the numbers written though it is obvious that it is in rupees/lakhs. For instance, there are entries - ‘GJR sir’ and ‘Sanjay Sir’ who have received lakhs of rupees from Varma. While Jupiter Aviation has been paid Rs 12.02 lakh, Rs 25 lakh has gone to Deccan Aviation. A number of individuals figure in the list. They include Suresh Reddy (Rs one lakh), BKBN Murthi (Rs 25 lakh), Rama Chandra Rdy Sir (GJR) (Rs 30 lakh), V. Bhat (Rs 75 lakh) and R.B (Rs 10 lakh).

The U V Singh report says that the seized records of IT department titled - A/MKV/5 Bellary 25/10/10 have been examined. “The reference to be made over here is necessary to find out the existing network and the persons involved/abetting the illegal mining activities directly or indirectly. The list given above is self explanatory and the records seized are enclosed as Annexure 1d”, it stated.

Hawala charges

The report says during the examination of records, investigators came across some information regarding payment of ‘hawala charges’.

During the analysis of the under-invoicing, the investigators found that money against exports was being parked outside the country. “The information in hand may be part of it. A further investigation by a competent agency is required,” the report says.

Muthaiya’s action

The report mentions that a well-established forest check-post at the inter-state border near Bellary (Hagari checkpost) was withdrawn in 2008 by then Deputy Conservator of Forests, S Muthaiya, leaving the authorities with no means to monitor the origin of the iron ore passing through the route.

From the seized documents of the Belekeri port, it is quite clear that Andhra Pradesh origin photo copy of bulk permits and forged trip sheet were in use to a large extent for illegal transport of iron ore from the illegal stockyards, permitted stockyards, forest and revenue areas and also from regular leases.

The report says that action  be initiated against Muthaiya for causing hundreds of crores of rupees loss to the State.

While explaining the rampant illegal mining in collusion with officials in Bellary, the Singh report says that heavy bribes were paid from 2004-05 to 2007-08 by Adani Enterprises Pvt Ltd, Belekeri, to officers of port, customs, police, department of mining, politicians and others.

The report recommends that the amounts paid to officers be recovered and criminal cases be filed against them under the Prevention of Corruption Act, 1988.

Dubious payments

Payments made by Madhukumar Varma, managing partner in M/s Madhushree Enterprises.  (There are many entries in the UV Singh report but only some of them have been reproduced here. The denomination against the numbers not mentioned in the seized document. But it is obvious it is in Rupees/lakhs. The purpose for which the money has been paid is not been mentioned.)

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