"The CEC had suggested for cancellation of two leases and imposition of heavy penalties on other mines, and a final decision on this is going to be taken by the Supreme Court. But before that, the government has renewed their mining leases. It can be easily seen how the government is bypassing legal obligation," said Prasad Harichandan, president of state Congress.
The state government earlier this week signed lease extension deed with 10 miners and is in the process of signing the similar deeds with 19 other mines lease holders as per the provision of the newly enacted Mines Minerals Development and Regulation (MMDR) Act, 2015.
More From This Section
These mines were asked to halt operation in May last year by the Supreme Court as they were operating without a valid mines lease. Besides, some of these mines were found to have violated air and water pollution rules and several mining related rules such as extracting ore beyond permissible limit.
The Shah Commission of inquiry, appointed to look into illegal mining cases, had recommended initiation of a probe by Central Bureau of Investigation (CBI) against Essel Mining, Sirajuddin and Co, Indrani Patnaik, Sarada Mines, Aryan Mining, M L Rungta, Mesco, Kalinga MIning Corporation, Ram Bahadur Thakur, S N Dasmohapatra and four other small miners.
These leases owners were found guilty of illegal mining, excess production, violation of Rule 37 of Mineral Concession Rule (subletting of lease), and evading crores of rupees in terms of income tax and sales tax payment, the report said.
The CEC, which was asked by the Supreme Court to check status of illegal mining after a court case was filed to ban mining activities in Odisha based on Shah panel reports , had found that a total of 213 million tonne iron and 2.4 million tonne manganese were extracted between 2001 and 2010 in Odisha by 72 leaseholders. Out of these, 14 leaseholders, including Odisha Mining Corporation (OMC), BPME Ltd, a PSU of Union government, Tata Steel and Aditya Birla group controlled Essel Mining were responsible for more than 70 per cent of illegally extraction.
The Supreme Court is scheduled to hold further hearing on a case filed by NGO, Common Cause seeking ban on mining activities in the state on May 11.
BJP said, it was gross misuse of power by the state government as it took a decision on a subjudice matter. "The government did not let a debate on chit fund cases to take place in the assembly citing that the matter was subjudice. But now they have decided to allow operation of these mines while the matter is pending before the court," said Basant Panda, BJP legislature party head. The state government however denied any wrong doings and said, it will abide by the judgements pronounced by the Supreme Court.
"There is nothing wrong in renewal of mines leases. In the lease deed, we have inserted a clause that the mine owners will have to abide by whatever decision the Supreme Court takes on the pending cases. Let us wait for the judgement," said Prafulla Kumar Mallick, minister for steel and mines department.