The ensuing hearing of the Supreme Court scheduled on August 29 in the Common Cause case relating to illegal mining in Odisha is likely to clear the cobwebs on the fate of mine lessees who haven’t paid their share of compensation.
As per the top court’s order dated August 2 last year, miners were directed to fork out compensation for excess production of iron and manganese ore between 2000-01 and 2010-11. Payment of compensation was in lieu of flagrant violation of limits specified under environment clearance. The amount for compensation as extrapolated by the court-appointed central empowered committee (CEC) worked out to Rs 17576.17 crore.
Acting on the court’s Judgement, the Odisha government slapped notices on 131 mining leases to exact compensation. But, the state government managed to recover some Rs 13,000 crore as a clutch of miners still defaulted despite the court granting extensions and condoning delays in payments.
Last month, the state mines department tightened the noose on the erring miners in iron ore-rich Joda and Koida sectors, initiating certificate cases against them. In the last hearing on the illegal mining case in the apex court on August 9 this year, the state government apprised the highest judiciary on the action initiated. The government via an affidavit also informed the top court on its intent to go ahead with coercive steps against the miners like confiscation of properties and freezing bank accounts.
“Actual position on the status of the defaulting mines could be known during the next hearing of the Supreme Court. There is pending clarity on whether the court will approve the state government’s action or pronounce a different Judgement”, said a mining industry source.
As many as 56 miners defaulted on paying the court-ordered compensation. Irked with the delay, the state mines department had instructed the collectors of Keonjhar and Sundargarh, the two top iron ore producing districts, to initiate certificate cases against the non-compliant lessees. The direction was pursuant to the decision taken by the state level task force on mining. Such leaseholders have been granted a month’s lease period to clear the arrears. The payment backlog is to be settled by the end of August. The state government had commenced an action against the miners by invoking provisions of its Odisha Public Debt Recovery Act.
Sarada Mines Ltd, Mid-East Integrated Steel (or Mesco Steel), R P Sao, Tarini Minerals Ltd and Orissa Minerals Development Company (OMDC) figure in the list of key offenders. The state government is yet to realize Rs 7552 crore from them inclusive of some forestry clearance violation dues.
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