The scam relates to excavation of iron ore in the forest land adjacent to the BK Mohanty mines at Uliburu in Joda mining circle. The lessee B K Mohanty had transferred the ownership of the lease to Deepak Gupta, the managing director of Deepak Steel and Power, via power of attorney.
The state government has terminated the mining lease of Mohanty and took control of the mine.
The state forest department has initiated proceedings against its seven officials for their complicity in the scam. According to sources, suspension orders have been issued against forester Ravindra Mohanty and three forest guards- Bhagirathi Mishra, Mathuri Swain and Jaykrushna Das. Three others- Jagannath Mishra, Jagabandhu Mohanta and Dasaratha Mohanta have since taken retirement. All the seven officials served in the Uliburu region under Joda mining circle in Keonjhar district during 2004-09, the period of the scam.
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