CBI raids 17 places in iron ore scam

The Central Bureau of Investigation (CBI) sleuths sped up their investigation into the case of illegal excavated iron ore and its export from the Belikeri Port as they raided many houses and offices of associates of former minister and mining baron G Janardhana Reddy on Saturday.

CBI officials said that searches were carried out at 17 places in Banaglore, Karwar, Hospet and Goa. During the raids the CBI seized important documents, and sources suggest that the raids will continue in coming days as many private firms, politicians and public servants are involved in the scam.

Deputy Inspector General of Police, R Hitendra of Anti-Corruption wing of CBI in Bangalore is leading the investigations. Following the FIRs filed on Friday, the CBI sleuths with the help of officials from other states conducted simultaneous raids on Saturday.

According to a CBI release, five regular cases and one preliminary enquiry case have been registered against various firms and exporters in connection with illegal excavated iron ore to the tune of 50 lakh MT worth Rs2,500 crore and subsequent export of the same from Belekeri Port.

Meanwhile, CBI sources confirmed that they have collected some documents from the Criminal Investigation Department (CID), Karnataka which was investigating the case earlier.

Sources said that the CBI filed FIRs against Mallikarjuna Shipping Private Limited (Karwar), Salagaounkar Mining Industries of Goa and Rajmahal Silks. The CBI also booked an FIR against SB Logistics of Hospet, Swastik Steels of Swastik Nagaraj, SMSK Industries of Ballary and also against some other firms.

At the same time CBI has started preliminary investigation in the export of iron ore from the Belikeri Port between 2009 and 2010.

The Supreme Court had questioned the Karnataka government as to how law enforcing agencies, particularly the CB-CID, were unaware of illegal mining on such a huge scale in its own forest reserves and transportation of minerals to the Belekeri port by using around five lakh trucks over a period of 17 months.

Subsequently, the Apex Court appointed a Central Empowered Committee(CEC), which recommended an in depth investigation of the mining and exports of the ore.

The two CEC reports had suggested a probe to find out officials responsible for various associated illegalities and thereafter to take appropriate follow up action against erring exporters, suppliers, transporters, stockyard personnel and officials.

It is alleged that the iron-ore was transported to Belekeri Port between January 1, 2009 and May 31, 2010 and exported to foreign companies especially China and Pakistan.

In its latest report, the CEC recommended that CBI must investigate all aspects of the illegalities associated with raising, transportation, sale and purchase, storage and disposal of about 3.4 mn tonnes of iron ore exported from January 1, 2009 to May 31, 2010 by four exporters.