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LATEST NEWS UPDATES | Lokayukta report on illegal mining names Yeddyurappa, Kumaraswamy by Johnson T A

Lokayukta report on illegal mining names Yeddyurappa, Kumaraswamy by Johnson T A

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published Published on Jul 21, 2011   modified Modified on Jul 21, 2011
Bangalore : Karnataka Chief Minister B S Yeddyurappa, currently holidaying in Mauritius, is among a slew of politicians set to be named in a damning Lokayukta report on the illegal plunder of Karnataka’s iron ore resources over the decade.

Cutting across party lines, the 8,000-page report also names the Reddy brothers of Bellary, Congress Rajya Sabha MP Anil Lad, former chief minister H D Kumaraswamy and BJP MLA Anand Singh.

While it will be officially submitted to the state government over the weekend, some of the findings of the report were confirmed by sources in the Lokayukta.

“All I can say is that my report has been leaked,’’ said Karnataka Lokayukta Justice Santosh Hegde when contacted.

The report estimates that the state lost Rs 1,827 crore in 14 months, between 2009 and 2010, through the export of iron ore from Bellary district without valid permits.

Yeddyurappa, who has been the mining minister and the CM since June 2008, has been specifically indicted in a case where dues of nearly Rs 118 crore, owed by a private mining firm operating in a state-owned mining area, were waived off.

The JD(S) had earlier accused an educational trust run by Yeddyurappa’s sons, B Y Raghavendra and B Y Vijayendra, of having received a Rs 30-crore kickback from the South West Mining Company, an affiliate of Jindal Steel Works, for waiving the government dues.

The Lokayukta’s report is the second and final one on iron ore mining in the state. In December 2008, the Lokayukta had submitted the first report which specifically looked at forest encroachments and mining lease violations by mining units in the state.

The Lokayukta inquiry into illegal mining was ordered by the H D Kumaraswamy government in 2006-07, following allegations that Kumaraswamy had received kickbacks from mining firms for mining permits.

The BJP’s Bellary leaders, Janardhana Reddy and Anand Singh, have been indicted in the report as the major perpetrators of an illegal iron ore export racket that circumvented all permit and licensing rules.

According to investigations based on data from the customs and mines departments, the Lokayukta has found that as much as 6.94 lakh metric tonnes of iron ore worth Rs 189.57 crore was illegally exported between April 2009 and March 2010 from the Belikeri port alone by a company called ILC Industries. This company has been named as a front company for the BJP’s Bellary leadership. Anand Singh, the BJP MLA from Hospet in Bellary, is an executive director in an ILC industries’ sister concern, ILC Iron and Steel. Singh’s own firm SB Logistics is the other main exporter from Belikeri.

The Lokayukta’s second report is largely based on investigations stemming from the seizure of nearly eight lakh metric tonnes of iron ore from the Belikeri port in March 2010. It focuses on the modus operandi of illegal exports of iron ore, especially from Bellary district, and has tried to follow the money trail from the exports, sources said.

“Such a largescale operation cannot happen without political patronage,’’ the sources said.

Investigations have revealed that the bank accounts of several small companies from the Bellary region that had barely a few thousand rupees became sudden recipients of deposits of crores from abroad.

The report has mapped out the transactions of every exporting company from every port in south India in an effort to corroborate export data with actual mining and transport permits for over a decade.

http://www.indianexpress.com/news/lokayukta-report-on-illegal-mining-names-yeddyurappa-kumaraswamy/820297/


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