PANJIM: Threatening to initiate strict action against defaulters, the State government has directed the Department of Mines and Geology (DMG) not to allow operation of leases belonging to those mining firms that fail to cooperate with the panel of chartered accountants (CAs) appointed to probe their financial transactions and ascertain actual losses to the State exchequer due to illegal mining. The firms have been asked to comply within seven days and the department has to submit a report of their compliance by March 2.
A leading mining company, whose 12 leases were renewed under the Mines and Minerals Development Regulation (MMDR), is amongst the many, which even after repeated reminders, is unwilling to cooperate with the CAs.
In a bid to identify and recover the exact losses to the State due to illegal mining, Government had in 2013 appointed a panel of 17 CAs, who are going in detail over company records on the quantum of iron ore extracted and exported between 2005 and 2012. Principal Secretary (Mines) Pawan Kumar Sen Tuesday morning held a review meeting with the department officials to evaluate the progress on the government’s comprehensive audit for evaluating various irregularities and illegalities committed by the lease operators.
The meeting was attended by CAs and department officials, wherein the Secretary Mines was apprised of difficulties faced by them in timely completion of audit, such as non-furnishing of required information in time by the lessees.
“All the details of difficulties faced by us were put before the Secretary. Several mining companies are not furnishing the required information,” a senior official said. As such, the Directorate of Mines is directed to identify the lessees who are not co-operating with the auditors and initiate stern action, including penal action, in case of willful disobedience of the Department order by lessees is found.
“The Secretary has directed us not to allow operation of the leases belonging to all those mining companies which are not furnishing details,” the official said. The department is directed to submit the report by March 2.
Former Chief Minister Manohar Parrikar had warned of criminal investigation against those companies that fail to cooperate with CAs. Of the 118 lease holders and 49 traders, more than half did not submit their details. The details such as ore production, export, purchase, domestic sale, storage outside mining site, opening and closing stock, etc are being studied by the CAs.
