New CBI probe to focus on exports worth Rs 13,000 cr

The investigation so far,being carried out on the orders of the Supreme Court,has focused on 50.77 lakh tonnes of iron ore illegally mined in the state and exported from the Belekeri port and 71.61 lakh tonnes exported by Obulapuram Mining Company (OMC) of jailed former BJP minister G Janardhan Reddy.

The ongoing probe has led to the arrest of five legislators,including Reddy,and over a dozen government officials.

Sources said the new probe will consume a lot of time and resources of the CBI over the next few months.

The agency has to look into dispatches by 252 exporters from Chennai,Ennore,New Mangalore,Kakinada,Visakhapatnam,Krishnapatnam and Karwar ports,dozens of transporters of the ore in Karnataka and the 228 receivers of the exports around the world.

The CBI investigation in Belekeri Port,OMC and Associated Mining Company cases has so far revealed that a mafia seized control of iron ore mining in Bellary between 2008 and 2011 and forced all other miners in the region to supply to them.

In some instances,the mafia forced its way into forests and used dormant mining leases to illegally excavate and export iron ore without seeking government permission and paying it royalty,thus making huge profits.

The state machinery was complicit or a mute spectator as the mafia wielded enormous political clout.

While a group comprising Reddy and aides has been identified and arrested for being at the forefront of the illegal export,several other companies and individuals are also suspected to be involved.

The state government has based its October 17 directive for a wider probe on a July 2011 report of the Lokayukta on “export of illicit iron ore of Karnataka origin” from 2006 to 2011 (when BJP-JDS were in power).

The Lokayukta compared mineral dispatch permits issued by the department of mines and geology with quantities of ore received at various ports in south India to assess illegal export.

“The perpetrators of this illegal export of iron ore,which has caused the state to suffer a huge financial loss,should be identified and the loss recovered from such companies/persons,” it said.

The Lokayukta said comprehensive mineral permit and customs data were not available prior to 2006. It also did not assess the quantity of iron ore exported through ports in Goa. Data for Mormugao and Panaji were not included because Karnataka ore was exported from these ports after mixing it with local ore,the Lokayukta report said.