Print Email to Friend| Posted on 12 July 2011

CURRENT AFFAIRS   MINING MESS

Exclusive

Losses due to illegal mining in K’taka may cross 13-digit figure

Justice Santosh Hegde’s second report on illegal mining in Karnataka is set to name six ministers

G Vishnu
New Delhi

Illustration:Vikram Nongmaithem

THE KARNATAKA Lokayukta, Justice Santosh Hegde’s second report on illegal mining in the state is expected to be released in the coming weeks. The calculation on revenue losses incurred to the exchequer is expected to cross a 13-digit figure. Apart from this, the report is expected to create trouble for at least six Karnataka ministers.

Sources have revealed to the FW that the second Lokayukta report on the mining scam could take down ‘atleast six ministers’.

The six ministers may include the Reddy brothers — Gali Janardhan Reddy (tourism minister), B Sriramulu (health minister) and Somashekara Reddy (revenue minister).

Interestingly, a party president of one of the three political parties in state is also likely to be named in the report.

Speculation has been on for a while regarding the loss incurred to the Centre owing to illegal mining and export of iron ore in Karnataka.

The first Lokayukta report became a seminal depiction of the proportion of illegal mining in the state, the second report is expected to reveal the true size of the mammoth scam. “It is definitely massive and could reach a 13-digit figure,” said highly placed sources.

“Do the math. A lot of transactions have taken place in dollars and other currencies. These figures have to be converted to InIndian rupees. The quantity of iron ore mined out of Karnataka and the laws broken for the same are humongous in proportion,” remarked a senior government official.

Hegde’s last report on mining released in 2008 spared none – it even named former Congress chief minister Dharam Singh in the list of public servants who had abused office to facilitate illegal mining. However, the BJP government took barely any action, except announcing a ban on export of iron ore from the state.

As observed by the Lokayukta, an area of 11,620 square km in the state was meant for mining by public sector utilities. It notified the surrender of 6,832.48 hectare of prime iron ore bearing land. This paved way for rampant illegal mining.

A long-time campaigner and renowned activist SR Hiremath of Samaj Parivarthan Samudaya confirmed the rumours on the scam hitting the 13-digit mark.

“In the 2010 Global Investors’ meet in Bengaluru the biggest MoU signed was worth `36,000 crore for the Brahmini steel plant. This was done by Janardhan Reddy’s wife,” said Hiremath. “If you combine the quantity of iron ore mined illegally and the profits made in the last decade in districts of Bellary, Chitradurga and Hospet it definitely crosses the 13-digit mark,” he said.

Possible ramifications of the report are already being anticipated by those who stand to be affected.

“I assure you JD(S) will get on the street to push this government to take action against illegal miners, no matter whose names come out,” said HD Kumaraswamy. “It is 100 per cent possible. According to our estimates, the mining scam exceeds Rs 50,000 crore mark,” he adds.

Kumaraswamy denies any link up with the Reddy brothers, even though it is widely rumoured that JD(S) collaborated with the Reddy brothers in mobilising members of Legislative Assembly to resign and blackmail the Yeddyurappa government in Karnataka.

Similarly, Congress leaders too gave a lukewarm response. “We will ask the government to take action. The BJP government in the state will raise the issude. Let the report be released first,” senior Congress leader Siddaramaiah told the FW.

With the Central Empowered Committee as well as the Central Bureau of Investigation having probed illegal mining in recent months, heads are likely to roll but only if the people in the power decide to take action.

The Lokayukta will be releasing its report before its term ends on August 4.

G Vishnu is a Correspondent with Tehelka.com.
vishnu@tehelka.com