JSW Steel says it is victim of illegal mining

Company says it has not done any illegal activity nor connected with any wrongdoing

Expressing full faith in the judicial process, JSW Steel, a part of Jindal group whose name figures in allegations of mining scam in Karnataka, today said it was a victim of illegal mining and had not done anything wrong.

The Supreme Court today ordered a CBI probe against former Karnataka Chief Minister B S Yeddyurappa for allegedly granting undue favours to firms, including the Jindal group.

The Sajjan Jindal-led company in a statement said, "It has not done any illegal activity nor connected with any wrong doing. It has full faith in the judicial process and its books are open and it will fully cooperate with the investigating agencies."

JSW Steel, the country's third largest steelmaker, runs a 10 million tonne per annum plant at Karnataka's Vijayanagar.

Sheshagiri Rao, the Joint Managing Director and Group's Chief Financial Officer, said, "... The Group follows highest standards of corporate governance. JSW Steel is, in fact, the victim of alleged illegal mining."

While directing CBI probe, the apex court also accepted the April 20 report of the Central Empowered Committee (CEC) which had pointed out several allegations against Yeddyurappa and corporate entities involving Jindals and Adanis.

The company said it has learnt that the apex court has accepted the recommendations made by CEC and has ordered CBI investigation in relation to various allegations "some of which pertain to JSW Steel and its group companies."

In its report, the CEC had recommended CBI probe considering the "massive illegalities and illegal mining" found in Karnataka and allegations against the Jindal Group as being "recipient of large quantities of illegally mined material and undue favour being shown to them.

The CEC report said the Prerana Education Society "set up by the close relatives of the then chief minister, Karnataka" had during March, 2010 received donations of Rs 10 crore from South West Mining Limited, a Jindal Group company, despite its own profit for 2009-10 being only Rs 5.73

JSW Steel shares fell by 5.19% to close at Rs 627.05 on the BSE. On the National Stock Exchange, the stock settled at Rs 627.15, down 5.16%.