The Orissa government on Wednesday cancelled the manganese mining lease to the Ram Bahadur Thakur (RBT), bringing an end to the long-drawn controversy over the mines.

The Ram Bahadur Thakur Company was intimated about the cancellation of the mines on Wednesday even though the chief minister endorsed the proposal for cancellation vide letter number 4631 dated August 20, 2010. The state government has cancelled RBT?s mining lease application dated September 25, 1991 under section 26(1) of the Mineral Concession Rules, 1960.

?The RBT has been intimated about the state government’s decision of cancellation of their mines,? said state steel and mines minister Raghunath Mohanty.

In a letter to RBT, the state government says: ?You have been indulging in illegal mining before obtaining the statutory clearances. You are not eligible for this mines.”

It was the irregularities in RBT which exposed the multi-crore mining scam in the state. A question by a ruling party member in the House followed by a grilling by opposition members brought into light the goings-on in the Orissa mining sector. After being cornered on the issue, the state government acted tough against unscrupulous mines owners, mines mafias and corrupt officials.

Following the allegations of illegal mining activities in RBT mines, the state government conducted a vigilance inquiry and also an official probe by the state steel and mines department. Besides the vigilance police and the mines department officials, the IBM also confirmed the illegal activities going on in the mines. The former principal secretary, Ashok Dalwai, recommended the cancellation of the mines after conducting a hearing on the case in which the RBT directors did not appear.

It was on September 25, 1991, the RBT, a Patna?based company, applied for manganese ore mines over an area of 95.568 hectares in Rudekela-Katusahi area of Keonjhar district. Acting on the application, the state government had recommended the mining lease in favour of RBT on March 8, 1994 to the Centre. The Centre on its part had accorded its approval on March 11, 1996. As per the rules, RBT was supposed to submit the approved mining plan by the IBM and other statutory clearances including the forest clearances from the Union ministry of environment and forest (MoEF) within six months. However, even though 14 years had passed, it did not produce the statutory clearances and continued illegal mining on the land.