Rajasthan High Court seeks reply from government on Vedanta mines allotment case

In a major setback to the multinational mining giant Vedanta, Rajasthan High Court has sought reply from state government as to on what basis Rock Phosphate mines, reserved for Public sector companies, were allotted to a private company- Vedanta. Justice Banwari Lal Sharma, hearing the petition of Advocate A K Jain demanding a CBI enquiry into this alleged Rs 600 crore mining scam. The High Court, during an hour long hearing repeatedly asked the state government as to under what provisions mines had been allotted to Vedanta. 

The court has also shown its displeasure on the slow progress of the case and asked why the government investigation has not taken place in 2 years. The Additional Advocate General (AAG) Anurag Sharma, in government's reply, said the the progress was slow due to non availability of one Mahendra Harsana who is suffering from cancer. He also said that another reason for delay was the death of mother of former mines secretary. However, AAG could give any explanation on provisions under which mines were allotted to Vedanta. The High Court has directed the state government to come up with those provisions under which mines were allotted by 31 January, 2018.

High Court counsel A K Jain who has moved HC accusing the state government and Anti-Corruption Bureau (ACB) for protecting accused in the  Rock Phosphate allotment

The High Court, earlier in August this year, had issued notices to Director General of ACB and state government to come up with an explanation in three weeks as to why investigations have not been completed even after two years of filing the case. 

Jain had submitted an application before High Court for a CBI probe. He has mentioned in the petition that despite the accusations being proved in the court, ACB has connived with Vedanta Group and the then principal mining secretary Ashok Singhvi to stall the investigations. 

According to Jain, post independence mines of rock phosphate can be allotted only to state owned companies. In 1969, the central government had allotted 248 ha rock phosphate mine at Matoon village in Udaipur to Hindustan Zinc Limited which was then a public sector unit. Later in 2002 when Vedanta's Sterlite Industries acquired Hindustan Zinc as part of government's disinvetsment drive, the Vedanta Group acquired the possession of rock phosphate mines also deviating the rules. The move was challenged in the court but Vedanta managed the case in its favour producing wrong documents.

However in 2008, ACB on the basis of a tip off and relevant documents registered a case against Vedanta and estimated a loss of Rs 600 crore to exchequer due to Vedanta's illegal possession of Rock Phosphate mines. But the agency didn't produce challan before the court. The matter was put under the wraps. But in 2015 when ACB arrested principal secretary Ashok Singhvi in the multicrore mining scam, the matter was again highlighted. Then on September 23, 2015 advocate A K Jain registered a case in ACB through a libel.