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Corruption in Karnataka: 5 lakh tonnes iron ore disappeared.

By Staff
Updated Monday, 28 June 2010 13:06:30 - IST (UTC +5:30)


The application has been filed by Deputy Conservator of Forests for Karwar region, R Gokul, whose attempted suspension by the BJP government — despite his work in seizing illegal ore and reporting its subsequent disappearance — contributed to the resignation decision of Lok Ayukta Justice Santosh Hegde this week. Gokul has sought suspension of all iron ore exports from Karwar, Mangalore and Bellikeri ports to facilitate investigation into documents produced by export companies claiming rights over the material seized at Bellikeri port.
The High Court application also reveals that between November 2009 and February 2010 — soon after the power struggle between the Reddy brothers of Bellary and Karnataka Chief Minister B S Yeddyurappa was settled — a total quantity of 57,17, 370 MT of iron ore was exported from Bellikeri and Karwar ports.
But when this was tallied with the total amount of transport permits issued by the Karnataka mining department for movement of iron ore from Bellary, the forest department found that permits were issued only for transportation of 21,85,452 MT of iron ore.
The forest department’s application indicates that 35,31,918 MT of iron ore was exported from Karnataka between November 2009 and February 2010 with no valid government permits, suggesting a grander scale of illegal mining in Karnataka.
From the data supplied to the High Court, the value of iron ore exported out of Karnataka with no royalties or taxes paid is around Rs 1,500 crore as per conservative estimates for the export priceband for iron ore.
Incidentally, export of iron ore from Bellikeri port for the entire financial year 2009-10 is reported as 65,01,805 MT with the major chunk coming between November 2009 and February 2010.
In February and March this year, officials of the Lok Ayukta, with officials of the forest department at Karwar, seized the iron ore stock at the Bellikeri port yard after investigations revealed that the iron ore was brought to the port from Bellary with forged and invalid permits.
On May 6, the Bellikeri port conservator accounted for the seized stock as being 8,05,991 metric tonnes. Subsequently, ten different companies approached authorities, claiming rights over three lakh tons of the seized materials. They cited export commitments for release of the seized ore but no final orders were issued for the release of the ore. There were no claimants for over five lakh tons. But a surprise inspection of the seized material by forest authorities on June 1 revealed that nearly five lakh tonnes of the seized material had been siphoned away. On June 2, the DCF, Karwar filed complaints in the court of the Judicial First Class Magistrate at Ankola and Karwar, stating that iron ore stocks, originally seized on the directions of the magistrates at these courts, had disappeared.
According to the application filed by the Karwar DCF in the HC, the seized material was moved out by the export companies claiming rights over them in connivance with port stevedores, port conservators and customs officials. Following the disappearance of the iron ore, Bellikeri Port Conservator Mahesh Belige has been placed under suspension by the Karnataka government.
The seized ore from Bellikeri was moved out through Mangalore and Karwar ports after being smuggled out of Bellikeri “with the help of barges and small vessels”, states the application filed by the Karwar DCF. The application of the forest department is expected to be taken up next week by the HC along with petitions filed by exporters for release of the seized iron ore stocks. (IE)

Tags: Karnataka, Corruption, BJP

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