Karnataka lost Rs 80k cr to illegal mining, says H K Patil

Bengaluru: Minister for Law and Parliamentary Affairs H K Patil told the Legislative Council on Friday that Karnataka had endured a loss of Rs 80,000 crore because of illegal mining.

He was speaking during the presentation of the Karnataka Appointment of Recovery Commissioner for Seizure and Attachment of Property of illegal Mining and Proceedings of Crime Bill 2025.

“Between 2006 to 2011, illegal mining was so rampant that the amount of iron ore exported illegally is unimaginable. To recover this looted money, we are appointing a Recovery Commissioner,” Patil said.

The minister added “as per the information we have, at least 20 crore metric tonnes of iron ore have been transported illegally. At the rate of ₹4,003 per tonnne, the state exchequer has suffered a loss of Rs 80,000 crore. Recovering this amount is the duty of a responsible government.”

As explained by the minister the Recovery Commissioner will undertake the task of confiscating, seizing, and attaching properties derived from organised crime, systematic conspiracy, and proceeds of crime.

He stated that 111 companies involved in large-scale and medium-scale illegal mining fall under Categories B and C, and SIT and CBI investigations were underway regarding them.

Although BJP members welcomed this bill, they argued that appointing a single officer of ACS rank or a retired officer as Recovery Commissioner would not be very beneficial. Such an officer may face excessive pressure. They suggested only if three or four people are appointed as Recovery Commissioners then it will be possible to recover the vast amount of looted money. The members also suggested appointment of Magistrates as Recovery Commissioners.

Not only should the looted money be recovered, but penalties should also be imposed, they insisted. The Legislative Council approved this bill.