Mining lease ‘violation’: Activist seeks CM Siddaramaiah's prosecution

Bengaluru: In what could spell fresh trouble for Karnataka Chief Minister Siddaramaiah, an activist has sought his prosecution for allegedly receiving kickbacks to grant approvals to eight mining companies that were involved in illegalities.

Activist H Ramamurthy has approached Governor Thaawarchand Gehlot with a petition seeking Siddaramaiah’s prosecution for decisions he took during his first term as CM. The activist stated that he had filed a complaint with the Lokayukta already.

“Siddaramaiah allegedly granted in-principle approval and deemed extensions in return for kickbacks amounting to Rs 500 crore, causing a state exchequer loss of Rs 5,000 crore [sic],” the complaint stated.

According to the complaint, eight mining companies had their leases extended in violation of the Mines and Minerals (Development and Regulation) Act.

“These eight mining companies had a history of serious violations of mining laws and were earlier classified as Category C due to their involvement in illegal mining, as per the Santosh Hegde report and Supreme Court judgment,” the complaint stated. “The approval process was in clear violation of Section 10A of the MMDR Act, which prohibits deemed extensions for companies that have breached license conditions,” it added.

Some of the companies named in the complaint are Ramgad Mineral & Mining Pvt Ltd, Karnataka Limpo Cements, Veerabhadrappa Sangappa & Co (Vesco), Tumakuru Minerals, Upendran, Kariganur Mineral Mining Industries and Mineral Enterprises Ltd.

“The illegal deemed extension of mining leases, instead of following the auction process, has resulted in a total financial loss of Rs 6,420 crore to the government. The act of bypassing auctions not only deprived the exchequer of rightful revenue, but also encouraged corruption and lack of accountability in the mining sector,” the complaint claimed.

Ramamurthy has sought Gehlot’s permission to have Siddaramaiah prosecuted under various sections of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita.

Last year, Gehlot sanctioned Siddaramaiah’s prosecution in connection with a site allotment scam at the Mysuru Urban Development Authority (MUDA). In February this year, the Lokayukta concluded its investigation after finding no evidence against Siddaramaiah and his wife BM Parvathi.