Illegal Mining: SC asks CEC to examine JSW, Adani
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Illegal Mining: SC asks CEC to examine JSW, Adani

Last Updated: Friday, November 18, 2011, 20:14
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New Delhi: The Supreme Court on Friday asked its expert committee to examine the alleged illegalities committed by other major companies involved in mining activities in Bellary district of Karnataka and neighbouring Andhra Pradesh which have been indicted in the Lokayukta report.

An NGO, Samaj Parivartana Samudaya, has sought the extention of the CBI probe to cover the two other major companies of M/s Adani Enterprises and M/s Jindal Steel (JSW) that have been strongly indicted in the Lokayukta report for illegal mining of iron and ore.

However, a special forest bench headed by Chief Justice SH Kapadia said it cannot straight away accept the plea of extending the CBI probe on the basis of the Lokayukta report and would ask the apex-court appointed Central Empowered Committee (CEC) and Attorney General GE Vahanvati to look into the issue.

"We will ask the CSE and the Attorney General to look into it," the bench, also comprising justices Aftab Alam and Swatanter Kumar, said.

"We are equally concerned about the issue but it has to be done within a proper legal framework. We want to go in a particular and systematic manner," the bench said while posting the matter for January 20.

The apex court had on September 23 directed a CBI probe against two companies -- Associated Mining Co (AMC) and Deccan Mining Syndicate -- for alleged illegal mining of iron and ore.

Advocate Prashant Bhushan, appearing for the NGO, said the Lokayukta report had made detailed and specific charges of serious illegalities against Adani Enterprises and JSW.

"The illegalities of these two companies are not only linked with the persons and matters that are the subject matter of current CBI investigations but also involve top public servants and public representatives," he said.

The NGO referred to the Lokayukta report to allege that powerful corporate entities such as Adani Enterprises are involved in the "theft" of 5.5 lakhs tons of iron ore from Belikere port.

It said the Lokayukta report has documented in detail the bribes paid regularly by Adani Enterprises to various officials of the Port and the Police Department.

The NGO charged serious illegalities have been detailed against JSW and its front company South West Mining Company (SWMC).

It also alleged JSW has been indicted by the Lokayukta for making illegal payments of Rs 30 crores to close relatives of the then Karnataka Chief Minister BS Yeddyurappa.

The NGO has also sought a direction for Karnataka and Andhra Pradesh to demarcate the inter-state boundary in a time-bound manner as the report categorically recommended that all mining operations, including transportation of already mined material, should remain suspended till the inter-state boundary between the two states is formally determined and physically laid on the ground.

The NGO also sought suspension of six mining leases of Bellary Reserve Forest in Anantpur district of Andhra Pradesh as was recommended in the report of the CEC January 7, 2011.

The AMC, against whom a CBI probe was ordered, is owned by BJP leader and former Karnataka Tourism Minister Gali Janardhana Reddy and his wife while DMS was owned by another mining baron SM Jain. Reddy is in jail.

Both the companies, according to the report of the apex court-appointed Central Empowered Committee (CEC), were involved in illegal mining in the lease area of 10.12 hectares at Jaisingapur village and there were irregularities in renewal of lease.

PTI

First Published: Friday, November 18, 2011, 20:14

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