The Karnataka lok ayukta’s second and final report on illegal mining in the state is completely different from its predecessor report both in its size and scope, if the portions of the leaked report are anything to go by.
The Karnataka lok ayukta’s second and final report on illegal mining in the state is completely different from its predecessor report both in its size and scope, if the portions of the leaked report are anything to go by.
The report has indicted chief minister BS Yeddyurappa, names at least four ministers in his cabinet and implicates his predecessor and bete noire HD Kumaraswamy for the rampant illegal mining, in which at least 600 officials colluded.
Yeddyurappa has been accused of having become the lynchpin of the racket that sustained illegal mining after the Reddy brothers lost their clout. Several mining owners allegedly paid kickbacks to Yeddyurappa through prerana trust, in which his sons were trustees, to continue with their illegal activities.
The report said that the state government had incurred losses to the tune of Rs1,827 crore in 14 months due to illegal mining.
It said that over 58 companies were involved in illegal mining, while 43 of them carried out their activities with support from politicians.
In fact, politicians held stakes in these 43 companies either directly or through their relatives.
The ore had to cross about 27 check-posts to reach their points of destination, which meant officialdom all along the route, down to the rank of constables and peons, was bribed to ensure a smooth passage for the iron ore.
Officials bribed included those from RTO, police, revenue, mines and geology and forest departments. In all, about 600 officials colluded in the racket.
The illegal iron ore was exported without proper dispatch permits. Even blacklisted companies sold iron ore through unauthorised dealers.
It further stated that all the mining companies which had been blacklisted have sold the iron-ore to unauthorised dealers. They sold the iron ore to unauthorised dealers who were not supposed to sell it.
The report also laid bare money-laundering and illegal export of iron ore. Belekeri port played a prominent role in exporting the illegally mined iron ore. Seized iron ore worth Rs80crore was exported to Singapore, the report said.
The report said that all the mining companies had even maintained records in their computers about how much money they had paid to which officials and politicians.
Koodligi MLA B Nagendra, and Kampli MLA TS Suresh Babu were unauthorised iron ore dealers. They ran transport companies and played prominent role in ensuring a safe passage for the iron ore to the ports, the report said.
The report also contained the encroachment of mining companies illegally but it was not given much importance.
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