CBI files cases, conducts raids in Karnataka mining scam

The Central Bureau of Investigation (CBI) Saturday filed five cases and began its preliminary inquiry into the multi-crore mining scam in Karnataka, involving illegal extraction and export of iron ore.

"The cases have been registered against certain firms, which illegally excavated 5.07 million tonnes of iron ore valued at Rs.2,500 crore and exporters, which shipped the quantity from Belekeri port on coastal Karnataka," the agency said in a statement.

The cases have been filed as per the Sep 7 directive of the Supreme Court on the basis of its central empowered committee's reports April 27 and Sep 6 pertaining to environmental matters.

"In this connection, raids were carried Saturday at 17 places in Bangalore, Hospet, Karwar in Karnataka and at Panjim in Goa for evidence against the firms and exporters involved in the scam," a CBI official said here.

As part of the investigation, a 10-member team also searched premises of jailed mining baron and former BJP state minister G. Janaradhana Reddy's aides, including K. Mahesh, S. Nagaraj and Somasekhar at Hospet and Sandur, about 300km from Bangalore.

"As the probe is at a sensitive stage, we cannot give more details till we submit the reports to the apex court," the official said.

Among the firms where raids were continuing are Greentax Industries, ILC Industries, Dream Logistics, SB Logistics and Sri Mallikarjuna Shipping.

The forest bench of the apex court headed by Justice Aftab Alam, Justice K.S. Radhakrishnan and Justice Swatanter Kumar slammed the Karnataka government for overlooking the illegal mining, transport and export of iron ore from the state's forest areas between January 2009 and May 2010.

Ruling Bharatiya Janata Party's (BJP) first chief minister in the state B.S. Yeddyurappa was also holding the mining portfolio.

"Can there be any doubt or denial about the complete failure of the state machinery in preventing the illegal mining in the state," the three-judge bench observed.

The CEC reports recommended probe against officials involved in the scam from mining ore to exporting it and action against the guilty.