Madras High Court orders CBI probe into Rs 5,800 crore illegal sand mining in Tamil Nadu

Chennai: The Madras High Court on Monday ordered a CBI probe into the massive alleged illegal beach sand mining to the tune of Rs 5,832 crore by private mining companies in the coastal districts of Tirunelveli, Tutocorin and Kanyakumari in Tamil Nadu and wanted among others, the agency to investigate the role of officials in the scam while saying political nexus cannot be ruled out in the matter.

A division bench comprising Justices S M Subramaniam and M Jothiraman directed the central agency to register criminal cases and launch investigation.

The bench was passing orders on a batch of petitions including a 'suo motu' PIL, V V Minerals and 29 others.

"In the light of above discussions, this Court finds it a fit case to refer the matter to CBI. Hence based on the findings in the Committee reports discussed above and based on all other materials available on record, the CBI is directed to register criminal cases and launch investigations. Also any pending cases relating to the issues discussed in this judgment registered by the Tamil Nadu Police is directed to be transferred to the CBI for enabling effective investigation. All related case files shall be handed over to the CBI within a period of four weeks," the bench said.

The Director, CBI shall constitute required number of Special Investigation Teams, consisting of officials with expertise and high integrity to conduct the investigation into this scam. Further, the CBI Director should monitor the investigation of the SITs to be constituted.

The bench said the key issue that needs to be investigated includes the modus operandi of the illegal beach sand mining Mafia, the role of officials including the omissions and commissions of all the officials from the senior most in the chain of command responsible for this "huge economic loss to the State exchequer." The corruption and connivance of the officials with the mining companies who indulged in illegal beach sand mining, transportation, storage and export must be probed across all departments which were accountable and responsible. The role of officials involved in the Royalty settlement proceedings whereby arbitrary fixation of royalty was done by benefiting the respondent companies must be investigated, the court said.

The political nexus to the massive scam cannot be ruled out, the bench added.

"Hence the CBI is directed to investigate into the alleged political nexus, and the role of the policy making authorities in conspiring with the private mining companies shall be investigated".

The bench said a multi disciplinary probe was also required to enquire into the crucial findings of high concentration of monazite found in the processed stocks and whether such a prescribed substance was exported by the mining companies ought to be investigated, since it was a matter concerning national security.

The bench said the illegal inclusion of monazite by the State government without the prior sanction of the Centre as statutorily required needs to be investigated to cull out any political-executive-private mining companies nexus in this issue. Apart from the key issues discussed above, the CBI can further expand the investigation on all other aspects pertaining to this case and file a final report before the Jurisdictional Court, the bench added.

The bench said considering the high economic value of the illegal mining and export and since the scale of financial loss to the State Exchequer runs to thousands of crores of rupees, the Government of India was directed to scrutinise all the financial and commercial transactions of the Respondent mining Companies dealing with BSMs (Beach Sand Mining)and refer the matter for investigation to the Enforcement Directorate, Income Tax Department, Customs and Excise Department and Commercial Taxes Department and by any other competent agencies as required.

Based on the investigation, the Government of Tamil Nadu and the Government of India, as the case may be, were directed to initiate suitable departmental disciplinary proceedings simultaneously against the officials involved in the scam.

"Liberty is granted to any person to initiate contempt proceedings in the event of violation of any of the directions issued by this Court in the present Judgment", the bench added.