central empowered committee report (i) of the cec in writ petition

central empowered committee report (i) of the cec in writ petition central empowered committee report (i) of the cec in writ petition

26.11.2012 Views

A copy of the note received from the State of Karnataka in this regard is enclosed at ANNEXURE–R-76 to this Report. IX. TRANSFER OF MINING LEASES BY WAY OF RAISING CONTRACTS / SUB - LEASES. 14. The Lokayukta, Karnataka in its Report has given details of the 39 leases in which the concerned leaseholders have transferred their mining leases by way of raising contracts or sub-leases including two such agreements entered into by M/s. Mysore Minerals Ltd. with M/s. K. Mark and Narayana Mining (P) Ltd. As a follow-up action, the Director, Mines and Geology issued notices to all the 37 leaseholders, (excluding M/s. Mysore Minerals Ltd., which is a State Govt. Undertaking) and calling explanation. 31 lessees have furnished replies stating that they have not given any raising contract and that they are having financial and administrative control over the lease area and have not violated any rule. The details of the notices issued, replies received and documents produced by the respective lessees are given in the statement enclosed at ANNEXURE–R-77 to this Report. 15. During the site visit, it was confirmed by the concerned officers of the State of Karnataka that no action has so far 12

een taken to verify the details of the alleged raising contracts / sub-leases mentioned in the Lokayukta Report with reference to the details of the payments made by cheque for royalty, payments received in the bank accounts of the lessees for the sale of the mineral, transport charges paid, details given in the audited Balance Sheets filed along with the Income Tax Returns, even through verification of these documents it could have been easily established whether the lessee has entered into raising contract / sub- lease or not. It has also been informed that the matter regarding raising contract was referred to the Law Deptt. and that the Advocate General has given his opinion on 23.3.2011 stating that raising contracts would be contrary to the Mineral Concession Rule, 1960. The file is under submission to the Chief Minister, Karnataka seeking orders to take necessary action as per the opinion given by the Advocate General and that after approval of the Chief Minister, further course of action in accordance with law will be initiated immediately. A copy of the response filed by the State of Karnataka before the CEC is enclosed at ANNEXURE–R-78 to this Report. 16. From the above, it is seen that after filing of the Report of the Lokayukta, Karnataka, practically for the last 2-1/2 years, no effective action has been taken by the State of 13

A copy <strong>of</strong> <strong>the</strong> note received from <strong>the</strong> State <strong>of</strong><br />

Karnataka <strong>in</strong> this regard is enclosed at ANNEXURE–R-76 to<br />

this Report.<br />

IX. TRANSFER OF MINING LEASES BY WAY OF<br />

RAISING CONTRACTS / SUB - LEASES.<br />

14. The Lokayukta, Karnataka <strong>in</strong> its Report has given<br />

details <strong>of</strong> <strong>the</strong> 39 leases <strong>in</strong> which <strong>the</strong> concerned leaseholders<br />

have transferred <strong>the</strong>ir m<strong>in</strong><strong>in</strong>g leases by way <strong>of</strong> rais<strong>in</strong>g<br />

contracts or sub-leases <strong>in</strong>clud<strong>in</strong>g two such agreements<br />

entered <strong>in</strong>to by M/s. Mysore M<strong>in</strong>erals Ltd. with M/s. K. Mark<br />

and Narayana M<strong>in</strong><strong>in</strong>g (P) Ltd. As a follow-up action, <strong>the</strong><br />

Director, M<strong>in</strong>es and Geology issued notices to all <strong>the</strong> 37<br />

leaseholders, (exclud<strong>in</strong>g M/s. Mysore M<strong>in</strong>erals Ltd., which is<br />

a State Govt. Undertak<strong>in</strong>g) and call<strong>in</strong>g explanation. 31<br />

lessees have furnished replies stat<strong>in</strong>g that <strong>the</strong>y have not<br />

given any rais<strong>in</strong>g contract and that <strong>the</strong>y are hav<strong>in</strong>g f<strong>in</strong>ancial<br />

and adm<strong>in</strong>istrative control over <strong>the</strong> lease area and have not<br />

violated any rule. The details <strong>of</strong> <strong>the</strong> notices issued, replies<br />

received and documents produced by <strong>the</strong> respective lessees<br />

are given <strong>in</strong> <strong>the</strong> statement enclosed at ANNEXURE–R-77 to<br />

this Report.<br />

15. Dur<strong>in</strong>g <strong>the</strong> site visit, it was confirmed by <strong>the</strong> concerned<br />

<strong>of</strong>ficers <strong>of</strong> <strong>the</strong> State <strong>of</strong> Karnataka that no action has so far<br />

12

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