Madurai Granite Firm Evades Royalty in Crores

A granite firm in Madurai has been evading royalty reportedly worth several crores of rupees to the government by fudging.

CHENNAI: A granite firm in Madurai has been evading royalty reportedly worth several crores of rupees to the government by fudging documents. What’s more, state government officials are turning a blind eye to it.
Information available with Express point to clear discrepancies in the production by PRP Exports as certified by the Department of Mines and Geology — also Madurai-based — and the quantum of exports as certified by the Commissioner of Customs in the port city of Thoothukudi.
The discrepancies in the export of granite by PRP Exports, one of the leading granite exporting firms in the south Tamil Nadu city of Madurai, is highlighted by the fact that while the mining dues clearance certificate from the Department of Mines and Geology claims the firm produced 78,631 cubic metres of granite within four years, the Commissioner of Customs in Thoothukudi says the firm, during the same period, exported several hundred thousand cubic metres of the rough and tough ign e ous rock, generally used in construction.
The royalty for one CBM raw block of granite is Rs 1,575. The firm, as per the Department of Mines, has paid a royalty of Rs 12.38 crore for producing 78,361 CBM of granite.
But, if the figures of the Commissioner of Customs, Thoothukudi, are taken to account, then the export of the granite reportedly runs into more than several hundred thousand CBM — and that too, illegally exported without paying the requisite royalty to the government.
A source alleged that the royalty due is in the range of Rs 50 crore.
“If the exports are taken into account, then it is as many as six times more than the permitted limit,” the source added.
When Express contacted deputy director of mines and geology R Rajaram, he was at a loss for words. Ironically, he was the official who had sent a letter to a whistleblower in the case by signing on behalf of the district Collector and inviting him and the officials from PRP Exports for a meeting at the Collectorate. (A copy of the letter is with Express).
When asked whether he has such powers to sign on behalf of the Collector, Rajaram answered in the affirmative.
He said the investigation was on.
Evidence with Express points out that PRP has exported several blocks of granite using benami companies in the year 2002.
“We will finish the investigation by July 10,” Rajaram said. “I will give you the correct figures then.”  

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com