“The chartered accountants were assigned to investigate dealings related to 118 mines. We have received a report of 82 mines. The detailed report of the other 36 mines will be submitted by July 15,” a senior Mines and Geology Department official said.
The report includes details of production, export, purchase of ore, domestic sale, iron ore storage other than at mining site, opening and closing stock, etc. The report will now be analyzed by Directorate of Mines and Geology (DMG) to identify the quantum of loss to the government as a result of largescale illegalities in the mining sector.
The government had appointed the panel in 2013 in a bid to quantify the exact loss to the State from illegal mining and recover the same. The CAs have been checking details of the iron ore extracted and exported between 2005 and 2012. The CAs were at loggerhead with mining firms following non-cooperation from the latter in producing details.
Following the submission of reports of all 118 mines by mid-July, the CAs will then probe over 260 export agents, registered with DMG and who were operating in the State during the period. In 2012, the government had suspended the licences of all 460 traders for revalidation. During the course of action, it was revealed that nearly half were operating illegally in the state.
The need to conduct the exercise became important after iron ore exports touched 54 million metric tonnes for the financial year 2011-12, while royalty was paid for 47 million MT. The Justice M B Shah Commission pegged the loss of revenue to the government from the mining scam at Rs 35,000 crore.
