NEW DELHI: The Justice MB Shah Commission probing illegal mining in Goa has pointed out that illicit iron ore worth Rs 2,756 crore was shipped aboard in violation of norms. The latest report, which was tabled in the Parliament last week, identifies violation of the environment, evasion of taxes and violation of export laws between 2000 and 2012. Although the report was not made public, a copy in the possession of The Sunday Standard exposes the deep rot in the illegal mining industry. For the first time, the Commission also unearthed the modus operandi of scamsters ranging from under-invoicing to evasion of transit passes to siphon off precious minerals from the state.
“In Goa, without obtaining transport permits, minerals have been transported to ports for export. There was no system in place. It was total chaos,” the report said. Recommending a CBI probe into the large-scale illegal mining, the damning report said that money swindled by the miners must be recovered with interest in addition to penal actions arising out of as theft of the ore outside the country.
“Can such illegal mining go without notice? There should have been rampant corruption and connivance,” the report noted.
Exposing the modus-operandi of mining companies, the report said there was huge difference between the quantity produced, royalty paid and quantity exported. It said there was no mechanism for ensuring that only royalty paid mineral extracted from valid leased area were transported and exported. It said some companies had their own front or associated companies registered outside India and they import the ore from their mother companies at low rate.
“Excess export done by six lessees (mining companies) as per DMG record from 2005-06 to 2000-11 is 15316501 tonnes. This quantity should be considered as illegal....Considering an average price of $40 per ton, the mineral values of illegal and non-royalty paid ore, during the period 2005-2010, comes out to `2756 crore,” the report stated.
UNDER- INVOICING
The Shah Commission noted rampant cases of under-invoicing of export consignments to the tune of over `600 crore. Since 2006 to 2011 about 688 consignments of “iron ore lumps” have been exported to various countries including China and Japan. The enquiry report pointed out that at least 195 consignments have been found to be under-invoiced by more than 30 per cent of the base value.
Even 1,084 consignments of “iron ore fines” were found to be under-invoiced, out of total 2,352 exported during 2006 to 2011. Commission report recommended a probe under Foreign Exchange Management Act (FEMA) by enforcement directorate to nab the culprits behind the racket.
ILLEGAL TRANSFER OF MINING LEASE
Shah Commission in its enquiry found that 68 lease holders of mines have transferred their lease hold rights without previous consent in writing of state government or previous approval of central government as mandated in mines and minerals act.
The report indicted government officials for conniving with mining mafias for illegal extraction saying that “operations of mine by the persons and firms other than actual lease holder would not be possible unless there is direct or indirect support from the regulatory authorities.”
EXPOSED
■ Excess illegal export from 2001-11 is about 1,59,73, 625 metric tonnes which cost `2,747 crore to the national exchequer
■ Under invoicing of various grades in 5 years between 2006-2011 cost the national exchequer over `650 crore
■ During 2006-2007, out of total 218 export consignments of iron ore (lump), 42 export consignments were noted under-invoicing
■ During the same year 181 export consignments of iron ore (fine) were noted under-invoicing
■ During 2007-08, out of total 283 export consignments of various grade of iron ore (fine) , 129 export consignments were under-invoiced
■ During 2008-2009, out of total
449 export consignments of iron ore (fine), 202 export consignments were under-invoiced
■ During 2009-2010, at least 407 export consignments were found under-invoiced
■ During 2010-11, 165 export consignments of iron ore (fine) were under invoiced