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