Incriminating documents seized, says investigating agency

The Central Bureau of Investigation (CBI) conducted searches on the premises of former chief minister B S Yeddyurappa, members of his family, Prerana Education Trust run by them and two mining companies in Bangalore, Shimoga and Bellary in the early hours of Wednesday.

The raids were part of a probe ordered by the Supreme Court into allegations of corruption against Yeddyurappa. The raiding teams also searched the house of former Muzrai Minister ES Krishnaiah Setty.

The CBI is unlikely to book the 15 lease holders whose mines were taken over by an alleged mafia operated by former Karnataka minister G Janardhan Reddy between 2008 and 2010 in an illegal mining scam case. The CBI chargesheet, which is to be filed in court before May 30, would focus on loot of iron ore through illegal encroachments by Reddy’s Associated Mining Company (AMC) rather than on forcible takeovers that also generated illicit iron ore for the company, sources said.

The area under forest cover in Karnataka has increased by four square kilometres, according to a latest report of the Forest Survey of India. It says the change has been noticed in the assessment year of 2009, compared to the survey carried out in 2008. The report was put in the public domain recently.

Sources in the State government told The Hindu that the change for the better was being seen for the first time in about a decade. What was noteworthy was that at a time when forests were being “plundered in terms of their flora and fauna and conservationists facing a tough challenge,” the increase, though negligible, marks a refreshing change.”

The Odisha government may impose a cap on iron ore production in the state, dealing a blow to the industry reeling under closures, loss of production and a nation-wide crackdown on illegal profiteering. A senior Odisha government official told ET on condition of anonymity that the state has begun work on restricting iron ore production to about 52 million tonnes annually. Odisha produced about 75 million tonnes in 2010-11, a third of the country’s annual output of about 218 million tonnes.

A conservator of forests and a former official of the mining department, who are accused of being key players in the illegal iron ore mining racket perpetrated by former minister G Janardhan Reddy and his aides, were arrested on Monday by the CBI. The arrests are in connection with an illegal mining case being investigated by the CBI against the Associated Mining Company (AMC) owned by the former minister.

The Central Bureau of Investigation (CBI) on Monday arrested former deputy conservator of forests (Bellary) S Muthaiah and former deputy director of mines and geology department (Hospet, Bellary) S P Raju in connection with an illegal mining case involving the Associated Mining Company (AMC).

The AMC is owned by former tourism minister Gali Janardhana Reddy and his wife Aruna.Muthaiah and Raju have been named accused number seven (A-7) and accused number 22 (A-22) in the case.

The illegal mining scam has not deterred mining companies from making a beeline for Karnataka. Over 19,000 applications seeking permission to excavate ore in the State are pending with the government.

Data compiled by the Union Ministry of Mines shows that of the 42,535 pending applications seeking permission for mining in various mineral-rich states in the country, (as on April 19), more than 45 per cent (19,351) of them are pending in Karnataka alone — the highest in the country.

SC nod can lead to production of 6-7 mt from 49 category A, B mines

The shortage of iron ore in Karnataka is likely to ease by July, as regular mining is expected to resume in a couple of months from now. The Supreme Court-appointed authorities are preparing reclamation and rehabilitation (R&R) plans, stoking hopes of an end to the stalemate. Once the apex court approves the plans, mining can resume in 49 leases of 50-hectares and above falling under the A and B category mines in the districts of Bellary, Chitradurga and Tumkur.

In a relief for the mining industry, the Supreme Court today proposed resumption of operations in 45 iron ore mining leases in Karnataka, provided they abide by the Reclamation and Rehabilitation (R&R) plan put in place. This follows a recommendation from the Supreme Court-appointed Central Empowered Committee (CEC) investigating illegal iron ore mining in the state, especially in Bellary, Chitradurga and Tumkur districts. The 45 mines include those of NMDC, Mineral Enterprises Ltd and two leases of Mysore Minerals Ltd, among others.

Bangalore Mining in Karnataka is back on its feet. The Supreme Court has allowed mining to resume in iron ore mines of more than 50 hectares after rehabilitation and reclamation plans (R&R) for these leases are approved by the Central Empowered Committee (CEC).

The court accepted the recommendatations of the CEC which refer to restarting mining in two groupings of mines referred to as A and B groups, a classification that the panel had made based on a survey of the extent of irregularities. The two groups together constitute some 100 mines.