PANJIM: Initiating proceedings towards recovery of the mining loot, Directorate of Mines and Geology on Tuesday issued a demand notice to Vedanta Ltd for payment of dues amounting to Rs 97.48 crore for undertaking illegal export of iron ore from 2010 to 2013. Approximately 20,76,746 of wet metric tonnes of ore were illegal dispatched during the time.
The department said that the payment should be done within a period of 14 days of receipt of the notice and balance interest from audit report till payment as per actual within seven days thereafter.
While every lease holder continued to pay royalty on wet metric tonnes basis, even after Mineral Concession Amendment Rules 2009, Vedanta Ltd had discontinued since the Mineral Concession Amendment Rules 2009 came into effect.
The notice issued by Mines Director Prasanna Acharya states, “The audit report prepared by Chartered Accountant was summarised by mining audit committee, which has made several observations including one being payment of royalty by you on dry metric tonnes basis instead of wet metric tonnes basis in respect of above mentioned leases as such the differential quantity of 20,76,746 on wet metric tonnes on conversion of dry metric tonnes to wet metric tonnes remains without payment of royalty.”
“Hence, royalty becomes payable for ore extracted and dispatched by you from financial year 2010-11 to 2012-13. The principal royalty amount corresponding to such quantity is arrived at by the mining audit committee to the extent of Rs 54,48,03,948 and interest computed thereof to the extent of Rs 43,00,30,642,” the notice states.
Also a proposal had been put up by Vedanta Ltd for decision of the government on specific issue of payment of royalty on dry metric tonnes and the applicability of interest in case of default in payment on wet metric tonnes basis, was rejected justifying payment of royalty on dry metric tonnes.
The department also clarified saying that confiscation and e-auctioning of royalty paid ore extracted from lease hold areas in terms of Supreme Court of India order in WP 435 of 2012 dated 11/11/2013 and 21/04/2014 shall not be a ground for seeking adjustment or reduction of principal amount or interest payable as such confiscation and sale of ore by e-auctioning of the ore was ordered by Apex Court for operation of lease beyond first renewal period without express order of second renewal by the State Government under Section 8(3) of MMDR Act, 1957.
