Miners named in Shah panel report under DRI lens

The company has paid Rs 50 crore duty to DRI. There are 17 other iron ore exporters under DRI watch and most of them figure in the commission report, according to sources.

“It is an ongoing investigation. Salgaocar Mining Industries have paid for those consignments that are detected by DRI as undervalued,” said an official.

Arjun Salgaocar, director of AV Salgaocar Group said, “We made voluntary upfront payment of Rs 50 crore. It is not a penalty. We paid it so that we could claim it back later after clearing all concerns of the authorities.”

Iron ore export attracts a high customs duty of 30 per cent. The DRI investigations allege that exporters showed lower iron ore content in their filings with customs and port authorities and paid a lower duty. An official privy to the investigation also said, they are also looking into whether the difference in price is parked abroad.

Salgaocar and some other firms in the DRI scanner are also investigated by the Central Bureau of Investigation (CBI) for alleged exports from Belekeri Port between January 1, 2009 and May 31, 2010 mainly to China, the second official cited above added.

The case is also monitored by the department of revenue, according to sources in the ministry of finance.

The Justice MB Shah Commission report had indicted 80 out of total 90 mines in Goa saying illegal extraction of iron ore during the past 12 years had caused a loss of Rs 35,000 crore to the state exchequer.