Ask The Government 2

Director of Mines, /DDM Joda/PCCF/Secretary Forest & Environment

1. Letter No 8147 / SM dt 21st Dec 2010 from Steel & Mines Secretary, Govt of Orissa writes to Director of Mines, Orissa for finding out details violation of Rule 37 of MC Rules 1960.

2. In point No (vii) of Page 3 of the above said letter, the Secretary clearly writes that the violation of Rule 37 of MC Rules 1960 also includes "Installation of Crushers and Beneficiation Units within ML area and the agency operating these and the agreements if any with the lessee"

3 M/s Thriveni Earth Movers Private Ltd has set up and owns 13 ( Thirteen Nos) Nos of Iron Ore crusher and Screening units within the mineral lease hold area of T Soy / R P Soy in Guali Iron ore mines and that of Nuagoan Iron Ore Mines of M/s K J S Alhuwalia in Keonjhar district of Orissa. Does this setting up 13 such units by Thriveni Earth Movers has the consent of Forest & Environment department of Govt of Orissa. This is a clear case of violation of Rule 37 of MC Rules 1960. What action Govt of Orissa is taking in case of this violation ? Is there any time frame of action ?

Questions Below

1). M/s Essel Mining and Industries Ltd's mine named Jilling-Langalota has been recommended from your office for re newal . Please let us know the conditions under which Renewal has been recomended when it has forest violation, environmental violations and surface right violations ( Sanatan Mahakud has built a house on the leasehold area without permission) ?

2. On 17 Aug 2010, your office had issued a letter addressed to the Vice President, Essel Mining
For eviction of Mr. Sanatan Mahakuda, unauthorisedly residing at their mining lease land. Why he has not been evicted till date?What action you are taking against the Company for willfull disobeying of your order? 

3) M/s Jindal Steel and Power Ltd (JSPL) has set up a crushing and screening plant within the leasehold premises of M/s S L Sharda and M L Sharda in their Thakurani –B mineral lease hold without requisite permission from authorties in Government of India and further the entire minerals produced from the said mines is being dispatched to JSPL. This is clear case of violation of Rule 37 of MMDR ACT 

a) What action Steel and Mine department is taking over the above said violation ? 

b) What date the Crushing and Screening Plant of JSPL in the above said lease is being closed and evicted from the said land.. 

4) Ms Rungta Mines (P) ( Jajang lease) Ltd have serious MMDR Act violations like that of Surface Right, usage of TP Passes, FC ACT 1980 Violations. What action has been initiated against them ? Even the production of Rungta Mines is beyond their Envrionment Clearance limit. What action has been taken against M/s Rungta Mines. 

For more details, visit us at Mining Scam in Odisha

Ask The Government I

Secretary, Steel & Mines

In the show cause notices issued to the mine owners dt 22nd Sept 2011 namely M/s Indrani Patnaik, M/s R P Sao and M/s Kamaljeet Singh Ahluwallia with regard to breach of Rule 37 of Mineral Concessions Rule 1960, there is one thing is common, which is given detailed below:-

M/s Triveni Earth Movers Ltd is the main and key raising contractor and partner in the above said three mines.

Earlier Honble MLAs of Various parties of Odisha have written letters to Chief Minister ( 3 Nos copies enclosed) that M/s Triveni Earth Movers limited in collusion with one Sanatan Mahakud is forcibly taking of over mines in Keonjhar district.

From above, it is clear that Triveni Earth Movers Ltd is the main cluprit of Orissa Mining Scam and the same has also been telecast in CNN-IBN ( a CD copy attached).

RTI questions

1. What action has been taken against Triveni Earth Movers with regard to illegal mining in Orissa as detailed above ?

2. Why the Govt is not advicing Triveni Earth Movers to close their operations in various mining leases of Orissa inspite of their massive involvement in illegal mining in Odisha ?

For more details, visit us at Mining Scam in Odisha

Ask The Government

RTI Questions

For Collector , Keonjhar Secretary Home

1. On 16th Oct 2011, Sanatana Mahakuda has given an advertisement in Odia daily "The Samaj" confirming that he is distributing " Unemployment Allowance' to youths in the locality of Balda, Palasa, Badakalimati and Nayagarh Panchayats in Champua MLA constituency of Keonjhar district 

2. The above has also been alleged by various MLAs as published in the news papers copies and this "Unemployment Allowance" is basically being paid to build up and maintain Private Army of Sanatana Mahakud ( as per news paper reports and petitions of MLAs 

3. This private army is running a private kingdom in the locality and forcibly taking over various business and mining operations and is also disturbing the operations / public hearings of government mining companies like that of SAIL, OMC and Nilachal Ispat Nigam Limited etc

Questions Below

a. Is the district administration aware of these activities of Sanatana Mahakuda’s Private army?

b. What is the source of this unemployment allowance? Is it from the ill-gotten money that Sanatana Mahakuda has received by way of illegal mining?

c.What are the FIR’s and cases pending against Sanatana Mahakuda of Joda? What is their status?

10 MLAs of Odisha Legislative Assembly have written letters to Chief Minister of Odisha with a copy to Collector, Keonjhar about the illegal and mafia activities carried out by Sanatan Mahakud and Thriveni Earth Movers in Keonjhar district. Copies of the letters are being attached ( 3 letters). 

1. Kindly let us know the action initiated by Collector and other district authorities of Keonjhar on Sanatan Mahakud and Thriveni Earth Movers on the complains of MLAs of Odisha.

For more details, visit us at Odisha Mining Scam

Pattnaik Minerals dragged to court for illegal mining

Following direction by the State Government to the Deputy Director of Mines (DDM), Joda senior mining officer Samir Kumar Mishra has filed a case against Pattnaik Minerals Pvt Ltd (PMPL) in the Barbil JMFC court for illegal mining. The case is filed against PMPL directors Saroj Pattnaik, Akhilendra Pattnaik and Ajay Pattnaik under Sections 4 and 21 of the MMDR Act.

The petitioner has alleged that the Joribahal mines, spread over an area of 106.534 hectares, of Pattnaik Mineral was involved in illegal mining outside its lease area, encroaching into the adjacent area of BPJ lease of the Odisha Mining Corporation (OMC), Besides, the company is also alleged to have constructed buildings outside its lease area, broken the safety zone of the lease area and dumped overburden from the mines outside the lease area without obtaining required permission from authorities.

For more details, visit us at Mining Scam In Orissa

Is mining law different for different companies ?

'State Govt’s involvement in mining scam exposed’

All trails of the mega mining scam in Odisha lead to the State Government Offices. Involvement of top authorities in this maze of corruptions has raised suspicion over the Government’s integrity. The slogan of ‘clean image’ of the Government by the ruling BJD is only a hoax and the dark spots of corruption are very well visible to the public, say BJP leaders.

Recently, the State Mining Department issued notice to Sharada Mines for violation of Rule 37 of the Mineral Concession Rules (MCR), 1960. “There is prima facie evidence of violation of Rule 37 of the Mineral Concession Rules, 1960, by the lessee… Violation of provisions of Rule 37 entails termination of mining lease,” the notice issued by Under Secretary of Steel and Mines Department Ds Jena said.

The matter had come to the notice of the Deputy Director of Mine (DDM), Joda when Jindal Steel and Power established two iron crushers inside the Sarada mines in 1997-98.

Being aware that it was a violation of the MCR, it was surprising how the DDM allowed the crusher to be set up. Sarada Mines, the lease holder of the Soyaballi Thakurani Iron ore mines spread over 947.04 hectares in Keonjhar district, has been found selling its entire run of mine (ROM) produce to Jindal Steel and Power Ltd (JSPL) at a much lower price than the IBM mineral rate without an agreement since then.

In 2002, the lessee of this iron ore mines, Mohanlal Sharda and Sunderlal Sharda, had applied for renewal of their lease in the name of a new company, Sharda Mines Pvt Limited, for a period of 20 years. The RML application was granted in the name of Sharda Mines (P) Ltd in 2004-05 in spite of the fact that the then Chief Secretary, DP Bagchi, in his note sheet had remarked, “It is well known that the mines is operated unofficially by Jindal and would it not amount to fraud ?” But for unknown reasons, the State Government allowed this violation to continue until the Shah Commission visited this mine last year.

After repeated allegations, a five-member committee formed to inquire into the violation of Rule 37 of the MCR, submitted a report to the Government of November 9, 2011. The report mentioned about major benefit of the mine flowing to the JSPL. The present arrangement between the Sarda Mines and the JSPL unbelievably reduces the value added tax (VAT) collection by the State Government on account of law pricing of ROM in comparison to the value derived by the JSPL from the product vis-à-vis the market price.

The Shah Commission during its visit also had suspicion over Sharda Mines selling all it produce to JSPL at such low price. also the commission reaised objection on illegal extraction of Minerals beyond permissible limits, establishment of conveyor belts violating forest laws and wondered how and why Sharda mines allowed JSPL to establish the crushers in its area etc. The State Government, in order to show that it is clean and has no forvour for this mining company, has only issued a show cause notice but allowed the mining operations to continue as usual. The officials and the top bureaucrats with whose connivance the illegal operations continued are yet to be booked.

For more details, visit us at Scam in Orissa

Ordinance on mining regulator

Perturbed by the cases of illegal mining in mineral rich states like Karnataka, Orissa and Goa the Union government plans to set up the National Mining Regulatory Authority (NMRA) through an ordinance under the existing Mines and Mineral (Development and Regulation) Act. 

The proposal of an independent regulatory authority is seen as a response to the increased allegations of illegal mining in as many as seven states. The mining regulator will have the powers to investigate and prosecute those involved in illegal mining. 

The independent regulator proposed to be set up, will be able to take stringent measures to curb illegal mining such as blacklisting those found guilty and holding special courts. A draft prepared by the Group of Ministers (GoM) in this regard intends to invest the authority with the powers of a civil court and its officials will have responsibilities similar to the state police. NMRA will be authorized to impose Rs 5 lakh fine for the first violation and for subsequent violations, the fine could be as high as Rs 10 lakh. 

For more details, visit us at Mining Regulator

Societal Impact of illegal mining:

Illegal mining helped some vested interests to reap rich benefit out of the process. Some unscrupulous people and mafias became rich overnight. Even some local people involved in the nexus between the illegal miners, transporters and traders, pocketing a part of this fortune.

So in a sense, it has created a social imbalance with the people involved in these illegal activities owning disproportionate assets compared to those people having their income from known sources.

Mines mafias had a field day in the backdrop of laxity in the government supervision and tacit approval of the field officers posted in the mineral belt. The officers posted at these lucrative mining sites prospered at the cost of society and the nation at large. Consequently, there is concentration of wealth and income in the hands of few people creating societal tensions.

The involvement of small mining companies in such illegal activities earned a bad name for the mining companies as a whole even though all weren’t involved in such undesirable activities.

On the other hand, the clampdown on illegal mining has resulted in collateral damage by way of loss of jobs particularly for those who were employed in transport of minerals like drivers, helpers among others. Consequently, the sale of specialized trucks and tippers that are used to ferry minerals from pit heads to ports has fallen sharply.

For more details, visit us at illegal Mining