The company said the SB Mines owned by the MLA had encroached upon the MSPL mining lease area in Vyasanakere and has been extracting eight million tonnes of iron ore worth Rs 960 crore since 2006.

Meda Venkataiah, Executive Director (Mines) of MSPL, at a press conference on Saturday, said SB Mines had a mining lease for 200 acres adjacent to 858 acres of mining area belonging to MSPL Limited in Vyasanakere. SB Mines encroached upon the MSPL area in 1999.  The State government based on a survey of the lease area found out that SBM was mining in the area leased out to MSPL. As a result the government evicted SBM from the MSPL area in August 1999.

According to Meda Venkataiah SBM encroached upon the MSPL area once again in 2006 and the changing political scenario in the State seemed to augur well for the mining company.

The MSPL filed a suit seeking injunction against SBM entering its area when the JD(S)- BJP led coalition government was in power in the State. The trial court granted the injunction.
However, the SBM violating the court orders continued ore extraction from the MSPL area.
MSPL Limited also screened video clips showing the mining activity in its area allegedly by SBM. Meda Venkataiah claimed that the video clips were recorded on July 15 and the machinery engaged in extracting and transporting iron ore, as shown in the video clips, belonged to SBM. The matter has been brought to the notice of Chief Minister B S Yeddyurappa. However, Anand Singh was not available for comments.