Odisha mining scam: SC rules 100 per cent fine from illegal miners

Bhubaneswar/New Delhi: In a landmark judgement on Rs 61,000 crore Odisha mining scam case, the Supreme Court today pronounced that all illegal miners operating without necessary clearances will have to pay 100 percent fine.

The apex court ruled that the mining companies indicted by the MB Shah Commission will have to pay the fine by December 31, 2017.

The move came after an NGO, Common Cause, filed a PIL in the apex court based on the MB Shah Commission report seeking CBI or SIT enquiry against mining leases operating illegally on Environmental clearance (EC) or Forest clearance (FC) in Odisha. The petition has also asked for penalty costing 100 percent of the mineral cost be recovered from anyone guilty of EC or FC violation.

Speaking to OTV, Naveen Kumar, Counsel appearing for mining companies said “Initially the Odisha government had demanded Rs 61,000 crore for EC violation which was cost of the iron ore. The court has pronounced on the matter saying that the total amount will be recovered from miners but of course calculation will be carried out by state government basing on which miners will have to pay.”

“The Central Empowerment Committee of the apex court had asked for imposition of 30 percent fine but the court has ruled that out. Meanwhile, mining would continue as usual in all the mines that have been cleared. But the court has rejected the pleas for restarting the mines that had their licences cancelled or lease extended,” Kumar said.

Cases in connection with Sarda, Rungta mines have been deferred for two weeks and a separate hearing will be done two weeks later, he added.

Meanwhile, the Odisha government has maintained that it would realise the penalty from the lease holders for excess mining after taking legal opinion on the Supreme Court order.

"We had imposed a fine on the excess production of minerals for mining beyond approved limit. Even though the court has ordered for 100 per cent fine, we have to examine the court order. We will take legal opinion over this. We would recover the amount from the mining companies by December 31," said Mines Director Deepak Mohanty.

He, however, did not disclose what would be the amount to be realised from the lessees. He said the department may revisit the demand notice sent to the mining companies after legal consultation.

Reacting to the court order, Eastern Zonal Mining Association (EZMA) General Secretary Prabodh Mohanty said since out of 187 mines, 102 are closed, the lease holders are not in a position to pay the penalty to the state government.

"We are examining the court order. If required, we may move the Supreme Court and file a review petition in this regard," said Mohanty.