Mining Company Gets Show-cause Notice

Lokayukta report stated that Kumaraswamy Mineral Exports misrepresented facts and did not pay around Rs 86 crore as royalty

Published: 01st May 2014 10:27 AM  |   Last Updated: 01st May 2014 10:27 AM   |  A+A-

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.

Stay up to date on all the latest Karnataka news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp