The Supreme Court (SC) has slapped notice on the Centre, JSW Steel, Kirloskar Ferrous, Vijaynagar Minerals and others on a petition alleging that they had formed a cartel ?to corner the state largesse and to secure the mining lease among themselves?.

A Bench headed by Chief Justice KG Balakrishnan has sought reply from the ministry of mining, JSW Steel, Kirloskar Ferrous Industries, Vijaynagar Minerals Pvt Ltd, Southwest Mining Ltd and others on a petition filed by Karnataka-based mining firm VS Lad & Sons (VSL).

VS Lad, a Bellary-based partnership firm, has challenged the Karnataka High Court judgment that upheld the state government?s recommendations for grant of mining leases on around 745 hectare in Donimalai range in favour of JSW, (188.28 hectare), Vijaynagar Minerals (181.70 hectare), South West Mining (184.14 hectare) and Kirloskar Ferrous Industries (180 hectare).

VSL is seeking mining lease for around 800 hectare in Donimalai.

Stating that the HC had erred in rejecting its contentions for seeking mining lease for captive purposes, the firm said the HC had also erroneously held that its pig iron plant having capacity of 400 tonne per day (TPD) in Chitradurga district did not belong to it.

According to the petition, the Karnataka government had failed to follow a uniform policy while shortlisting the companies for lease and the orders passed by it ?is a premeditated order prepared at the behest of JSW only with a view to favour the latter?.

Alleging that the companies had formed a cartel, VSL said Vijaynagar Minerals and South West Mining have entered into a pact with JSW for supply of material, thus forming a cartel among themselves.

Besides, it said Mysore Minerals Ltd, a state government undertaking, had also entered into a joint venture (JV) with JSW for obtaining the mining lease instead of exploiting the mineral in the open market conditions. VSL had dragged the state government to the HC in January 2008 over its recommendations for grant of mining lease to the companies.

However, HC had refused to interfere saying these companies, which had expertise in mining field and had also committed to supply entire quantity of iron ore produced to JSW, were seeking mining lease for captive purposes.