Karnataka Lokayukta Justice Santosh Hegde on Friday told FE he has recommended investigation into the involvement of corporates like JSW and Adani for buying illegally mined ore and, separately, for two dubious transactions of up to R30 crore allegedly with chief minister BS Yeddyurappa?s family. He has also recommended that Adani Enterprises be blacklisted and its port lease cancelled.
Other than these two companies, the report has also named over 100 private companies including even the state-run National Mineral Development Corporation in the mining racket.
Hegde said he has referred some of the instances to the Enforcement Directorate for further action. ?We found that by under-voicing, some monies were given out of record. There was under-invoicing in weight and under-invoicing in value. So, this money must have been parked somewhere,? he said.
?We have, specially in regard to the directors of Obulapuram Mining Company, given particulars of some companies which they had opened up in Singapore and other tax havens.?
The Obalapuram Mining Company, located in Andhra Pradesh is run by state tourism minister Janardhana Reddy.
The Lokayukta report found that around 12 lakh tonnes of iron ore had been supplied in excess to JSW during April 2009 and July 2010, causing loss of royalty to the state. In his report, Hegde has said that the state government should take immediate steps to recover an amount of Rs 324.42 crore for supply of excess illegal iron ore from the suppliers and JSW Steel Ltd. JSW said in response to a query that the company has no comments to offer on the Lokayukta report.
In the case of Adani, Hegde said that ?their names started appearing once we started going into Belekeri port?. The company, part of the Adani Group, was among four firms providing port services at Belekeri, a little known port some 200 km north of Mangalore. The Lokayukta team had seized 8.05 lakh tonnes of ore during a raid at the port in February 2010, but by July that year, at least 5 lakh tonnes had vanished. In the investigation that ensued, the Lokayukta seized computer hard disks from Adani?s office in which they found details of bribes paid to officials from various departments including ports, customs, police, pollution control board, mines besides local politicians.
? Adani Enterprises has paid bribes for getting undue favour for illegal exports. Action should be initiated against the company to cancel the lease granted at Belekeri port,? the report stated. ?The company should be black-listed and barred from participating in any future contract, grant or lease by the government.?
Meanwhile, the report also noted that NMDC had an export sales rate much lower than what was prevailing in the market and concluded that the amount earned through some shipments were 40% of what it could have earned. ?Due to this, the public sector undertaking has incurred a huge loss. The concerned ministry of the Government of India may take note of it and take further needful action,? it said.