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Indian iron ore mining mess - SC directs CEC to probe allegations by NGO
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Saturday, 11 Feb 2012
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The Supreme Court on Friday asked the Central Empowered Committee appointed by it, to look into charges made by an NGO that two companies in the iron ore mining and steel production bribed former Karnataka chief minister Mr BS Yeddyurappa and senior officials for the alleged illegal mining and transport of iron ore.

A three judge bench headed by Chief Justice S H Kapadia told the court appointed panel to inquire into the allegations against JSW Steel and Adani Enterprises made by advocate Mr Prashant Bhushan, appearing on behalf of NGO Samaj Parivartan Samudaya.

The court said “We ask the CEC to consider the interim application for appropriate recommendation.”

According to the NGO, the JSW had received 1.297 million tonnes of illegal iron ore by overloading, that caused a loss of INR 324 crore to the state exchequer. The application alleged that as quid pro quo, the JSW through its subsidiary South West Mining Company made payments to close relatives of then chief minister of Karnataka.

It is alleged that “Powerful corporate entities such as Adani Enterprises and others of Belikere Port are involved in the scam relating to the theft of 550,000 tonnes of iron ore.”

The application also allegedly links jailed former Karnataka minister Mr G Janardhana Reddy’s Associated Mining Company with Adani Enterprises, relying upon the Lokayukta report.

The NGO referred to a list of names of officers prepared by Lokayukta, indicating that they had received bribes.

(Sourced from Deccan Herald)

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