Vigilance arrests Koira DDM over Rashmi Metalik irregularity

Raids at firm's Kolkata office to nab MD on illegal ore export charges

The vigilance department of state police today arrested two mines department officials including deputy director of mines (DDM) of Koira circle on charges of favouring Kolkata-based Rashmi Metaliks in issuing transport permit though the firm did not have a valid trading licence.

The department arrested Ramesh Mahalik, currently posted as DDM of Koira mining circle, in Sundargarh district and Girish Chandra Bose, senior clerk of the office for illegally issuing transit permit to Rashmi Metaliks Pvt Ltd in 2008.

"Rashmi Metaliks has been found transporting about 33,000 metric tonne of iron ore between August 8 and 28, 2008 without obtaining a valid trading license. Mahalik and Bose unlawfully issued permit to the company," said Sashibhushan Mishra, superintendent of police (SP), vigilance, adding that the transported mineral is valued at over Rs 6 crore.

The two government officials, who were brought to the vigilance headquarters at Cuttack today, would be produced before Special Vigilance Court at Keonjhar on Saturday.

The vigilance officer said, managing director (MD) of Rashmi Metaliks, Sanjay Patwal has been booked in the case along with two other officials of the mines department.

"There are five accused in the case. Raids are on in Kolkata in connection with the case to arrest Patwal," Mishra said.

The state government had suspended Joda DDM Ballabh Charan Nayak in March this year for regularising the procurement licence of Rashmi Metaliks without government permission. Nayak had validated the suspended trading license of the company after the high court dismissed the suspension of licence.

Besides the illegal ore transport case, Rashmi Metaliks is also accused of exporting iron ore through railways without paying export tariff. Last year, The South Eastern Railway (SER) alleged that the firm had transported huge quantity of iron ore between 2008 and 2011 under freight rates meant for domestic use, and exported the entire consignment avoiding payment of export freight rate, which attracts higher charges than freight rates for domestic consumption. The railway division had raised a demand of Rs 660 crore on the firm, which included Rs 528 crore penalty and Rs 132 crore export freight charges.

The Central Bureau of Investigation (CBI) is currently probing the case.