New Delhi: CBI is investigating a scam worth
at least Rs 780 crore by a mining firm which allegedly
defrauded the Railways in transportation of iron-ore meant for
commercial activities by making false declaration about its
Official sources said the alleged irregularities were
carried out in connivance with certain senior officials of
South Eastern Railway (SER) for wrongfully transporting the
goods from its Chakradharpur division which were exported
through Haldia Port in West Bengal.
An initial investigation conducted by the Railways
revealed that the company caused huge revenue loss to it by
making false or misleading declaration about the end use of
the iron ore lifted from mining sources.
It detected that certain industrial units were
transporting iron-ore through the Chakradharpur Division of
SER declaring the material was for domestic consumption or
"Actually the iron ore was being exported through Haldia
Port. The investigations initially revealed a loss of revenue
of about Rs 50 crore for a period of nine months in the year
2010 by a private company," a source said without divulging
the name of the company.
Later, the scope of investigations was widened to cover
three years from 2008-09 to 2010-11.
"The recoverable amount worked out by the Railways in
mis-declaration of goods is Rs 749.50 crore," he said.
Officials have got evidence of similar modus operandi
being opted by other companies active in mining activities in
Jharkhand and Orissa and they are now being separately
The case was referred to the CBI for an in-depth probe by
the Central Vigilance Commission.
"The scam is huge and there is a possibility of
involvement of certain railways officials who colluded with
certain mining firm owners," the official said.