Shah panel summons JSPL & Sarada Mines

Written by feBureau | Bhubaneswar | Updated: Nov 7 2012, 06:34am hrs
Mining scam: Cos told to appear before Nov 8

The MB Shah Commission, probing the multi-crore mining scam in several states, has summoned the Jindal Steel & Power (JSPL) and Sarada Mines for alleged irregularities in mining activities. The officials of the two companies have been told to appear before the commission on November 8.

The commission has summoned the two companies as there are allegations that they violated Rule 37(B) of the Mining Concession Rules (MCR), said state director of mines Deepak Mohanty.

JSPL allegedly entered into an agreement with Sarada Mines to source iron ore from the latters Thakurani iron ore mines in the state. But as per the Rule 37(B) of the MCR, no mining leaseholder can allow a third party to raise minerals without the permission of the state government. Sources said JSPL has taken over Sarada Mines by acquiring majority stakes in the company. The state government has served notices to Sarada Mines, along with seven other mining companies, for violation of MCR.

The Shah Commission will meet officials of the state Vigilance Police on November 7. The state vigilance police, which was entrusted with the probe in 2009, has filed several cases against mining companies for illegal activities. It has also arrested several government officials and executives of mining companies.

The commission, headed by UVSingh, has completed verification of 18 mining leases.