Committee to probe lessee-contractor nexus in mining areas

Following allegations from different quarters over the unholy nexus between the mining lessees and contractors, the Orissa government has decided to constitute a committee to probe into the matter.

"We have decided to form a committee that will probe into the dealings between the lessees and contractors including financial transactions. The probe will continue for 3-4 months after which the committee will submit a report. The department will then go through the report and take necessary action”, said steel & mines minister Raghunath Mohanty.

The committee will specifically probe into allegations of violation of Rule-37 of Mineral Concession Rules-1960.

According to Section 37 (1) of MC Rules-1960, no lessee can assign, sub-let, mortgage or in any other manner transfer the mining lease without the prior written consent of the state government.

In May, former BJD MLA Debasis Nayak had brought to fore allegations pertaining to the unholy alliance between mining contractors and political personalities in Keonjhar and Sundergarh districts.

In a letter to the state Chief Minister Naveen Patnaik on May 19, Nayak had alleged that Triveni Earth Movers Ltd in collusion with Sanatana Mahakuda, a defeated candidate from the Champua constituency in Keonjhar district, is leading the mining mafia in Keonjhar and Sundergarh districts.

Both Triveni Earth Movers and Mahakuda have forcibly taken over the mining operations of several mines in these two districts illegally and local mine owners have been forced to give their consent under gun point, Nayak said in the letter.