CHENNAI: The Madras High Court has ordered a Central Bureau of Investigation (CBI) probe into the large-scale illegal mining of beach sand minerals (BSM), citing collusion, corruption, and connivance among politicians, government officials, and private mining firms, causing losses of thousands of crores to the state exchequer.
The court also ordered investigations by the enforcement agencies like the Enforcement Directorate (ED), Income Tax, Customs and Excise and the Commercial Tax departments to get to the bottom of the transactions of the private companies caught in the illegal mining of BSM.
The probe will look into the process of granting mining leases, transport permits, and the inclusion of monazite—an atomic mineral—in the approved minerals list.
The orders, having huge ramifications on mining BSM which also have atomic elements, were pronounced by a division bench of Justices SM Subramaniam and M Jothiraman after elaborately hearing a batch of petitions including the 2015 suo motu PIL on illegal mining of BSM in Thoothukudi, Tirunelveli and Kanniyakumari districts.
The court also ordered investigations by the enforcement agencies like the Enforcement Directorate (ED), Income Tax, Customs and Excise and the Commercial Tax departments to get to the bottom of the transactions of the private companies caught in the illegal mining of BSM.
“It is also undeniably established from the discussions above, right from the grant of mining lease approval, licence to grant of transport permits, illegal inclusion of monazite in mining lease, to lack of efficient monitoring, to arbitrary and legally questionable royalty settlement proceedings, to lack of initiation of appropriate action when required, and complete shedding of accountability on the part of the officials, top to bottom across departments and executive spectrum, there appears on the face a scheme of collusion, corruption, and connivance among political, executive, and private mining lease holders,” the bench said.
"It added that the involvement of government officials and the illegality perpetrated by them, including the political nexus supporting this scam, should be thoroughly investigated to protect public trust in the system.
Based on the findings presented in the case, the court ruled that it is a fit case to refer the matter to the CBI. Hence, the CBI is directed to register criminal cases and launch an investigation, with any related cases pending with the state police also handed over to the CBI.
The court further directed the CBI Director to constitute the required number of special investigation teams with the necessary expertise and integrity to conduct the probe."
The court upheld the reports of IAS officers, Gagandeep Singh and Satyabrata Sahoo, and the court-appointed amicus curiae V Suresh on the illegal mining of beach sand minerals (BSM) in Thoothukudi, Tirunelveli and Kanniyakumari districts by private companies and directed the state government to initiate all appropriate action to recover the cost and royalty amount of Rs. 5, 832 crores from the companies for illegal mining.
“This court, after careful analysis and extensive discussions, holds all the findings in the reports of Gagandeep Singh Bedi, Satyabrata Sahoo, the reassessment report and the amicus curiae’s report valid and sustainable in the eyes of law,” the bench said in the order.