The State government has issued a show-cause notice to Kumaraswamy Mineral Exports Private Limited for allegedly mining in reserved forests.
Lokayukta Justice Y Bhaskar Rao had conducted a detailed inquiry and sent a report to the government recommending criminal proceedings against the company.
The Lokayukta report sent under Section 12 (1) of the Lokayukta Act stated that the company misrepresented facts and did not pay around `86 crore as royalty.
The report stated that Kumaraswamy Mineral Exports Private Limited had applied for mining lease for 259 hectares on November 1986.
The sketch along with the application was later redrawn and appended to the same application, which is in violation of the Mines and Minerals (Development & Regulation) Act.
The Lokayukta also found that the mining area with high quality iron ore was within the reserved zone.
Secretary (Mines, SSI and Textiles) Tushar Girinath told Express: “We have issued notice to the company based on the Lokayukta report. However, there are some other facts before us which will be examined before arriving at a decision. According to Section 26 (1) of Mines and Minerals (Development & Regulation) Act we must hear from the company as well”.
Meanwhile, Kumaraswamy Mineral Exports Private Limited has approached the High Court seeking a stay on the proceedings initiated by the department.
The department will decide on taking action against all its former directors only after the enquiry under section 26 (1), Girinath said.
Lokayukta Justice Rao had recommended disciplinary proceedings against all the directors of the department between November 1986 and May 2010 for allegedly allowing Kumaraswamy Mineral Exports Private Limite to conduct illegal mining in Sandur.