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CBI begins probe in offshore mining licences scam

Just a week after filing cases in coal block allocation scam, CBI has begun probing alleged irregularities in the country's first-ever attempt to explore untapped mineral wealth worth thousands of crores lying in the deep sea bed, sensing another mega scam.

PTI

 Just a week after filing cases incoal block allocation scam, CBI has begun probing allegedirregularities in the country's first-ever attempt to exploreuntapped mineral wealth worth thousands of crores lying in thedeep sea bed, sensing another mega scam.

CBI sources said a preliminary enquiry has beenregistered by the agency in connection with the allegedfavours extended to the companies by the unknown officials ofthe Indian Bureau of Mines while awarding licences forexploring minerals in the sea bed of Bay of Bengal and ArabianSea.

It is alleged four beneficiaries companies owned by thefamily members of an Indian Revenue Service officer are alsounder the agency's scanner as they bagged nearly half of theblocks despite lacking necessary qualification, they said.

The sources said in March last year government, in afirst attempt to explore offshore mineral wealth, had placed62 blocks on offer out of which 28, nearly half, were baggedby companies owned by family members of the former EnforcementDirectorate official who had also served in Mines Ministry.

The final award of licences had been put on hold afteraggrieved parties approached the Bombay High Court and theAndhra Pradesh High Court seeking their cancellation.

The companies allegedly owned by the son and brother ofthe officer are based at the same address on Kasturba GandhiMarg in the national capital, they said.

It is alleged that companies were incorporated after bidswere invited from the interested parties willing to go forexploration and did not have any experience in offshore miningat the time of notification.

The CBI sources said it is a matter of probe how these companies with such alleged lacunae managed to score overrival firms which were in fray for the lucrative contracts.

Sources claimed it has been alleged that at screeningcommittee level the companies belonging to the kin of theofficer scored much above the rival firms.

Indian Bureau of Mines, which works under the Ministry ofMines, had announced in March last year the list of companiesthat had won the bids of exploration of mineral wealth.

However, the Nagpur bench of the Bombay High Court hadstayed the execution after accepting the plea of Tamil Nadu-based company Rare (H) minerals.

"Controller General, Indian Bureau of Mines has issued anotification dated 7th June, 2010 inviting applications forthe grant of Exploration Licence in the offshore areas of thecountry. 377 applications have been received in IBM for grantof exploration licence," the Ministry of Mines had said in astatement last year.

The sources said that each block measuring about 800 sqkm is estimated to have huge unexplored mineral wealth in thesea bed of Bay of Bengal and Arabian Sea.

A similar case is also going on in the Andhra PradeshHigh Court after a company, Trimex Sands, challenged the awardof exploration licence.

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