Sesa Goa denies wrongdoing in Karnataka mining scam

Vedanta Group firm Sesa Goa has contested Karnataka Lokayukta's report and said no illegal transaction was done with regard to export of iron ore as the shipments had reached the Krishnapatnam port before the ban on its transportation took effect.

"The Lokayukta report has made an observation about our shipments from Krishnapatnam port and it has not indicted us," Sesa Goa Managing Director PK Mukherjee told PTI.

In the 464-page report on illegal mining, Karnataka's Lokayukta N Santosh Hegde has mentioned Sesa Goa among the companies which exported iron ore from Krishnapatnam port after the state government had a ban on its transportation.

On Friday, the company's shares plunged by over 5% to Rs 275 apiece on the Bombay Stock Exchange against the backdrop of reports that company has also been named in the Lokayukta's report.

Clarifying the transactions, which have been mentioned in the report, Mukherjee said the two different shipments of about 60,500 tonne and 15,000 tonne respectively were lying at the Krishnapatnam port before the imposition of ban by Karnataka government on July 28, 2010 and they were exported.

"There was nothing illegal in that [exports of two shipments] as these quantities were moved to the port in early July while the ban was imposed on July 28, 2010. Every export was done in a legal way," Mukherjee said.

He added that Krishnapatnam port is outside Karnataka and there was no restriction on ports outside the state to stop exports.

"The ban was on transportation of iron ore from the state and our quantities were moved before the imposition of ban. So where is the question of violating the law," Mukherjee said.

According to the report, Sesa Goa exported 60,500 tonne of iron ore through MV Nava Eliza on August 10, 2010, while the second export of the company of about 15,000 tonne took place on August 13, 2010 through MV Genco Pioneer.

The report has also strongly indicted, among others, Karnataka Chief Minister BS Yeddyurappa, who is  expected to quit office in the wake of illegal mining scam.