Galla's parting gift to illegal miner

Hyderabad : In a blatant misuse of power, former Minister for Mines and Geology Galla Aruna Kumari favoured a private mining company by ordering a stay on collection of `32.84 crore towards seigniorage fee and penalty imposed on the company by the department authorities for illegal quarrying of rock sand in Ranga Reddy district.

What is more shocking is that Aruna had resigned from the Kiran Kumar Reddy Cabinet within a few days of issuing the stay order, causing a huge loss to the State exchequer.

Subsequently, she joined the Telugu Desam Party and is presently contesting the Assembly elections from Chandragiri constituency in Chittoor district.

Her son, Galla Jayadev, a noted industrialist heading prestigious Amara Raja Group, is contesting the Guntur Parliamentary elections on the TDP ticket.

The company that benefitted because of the former Minister's largesse is M/s Rock Sand Minerals Private Limited. What is interesting is that the Minister extended this benefit to the company MD, P Purnachand, despite being aware of the fact that the assistant director of mines had already issued a demand notice, dated December 5, 2013 for payment of `32,84,38,800 towards normal seigniorage fee along with penalty for stone and metal excavated unauthorizedly outside the leased area and its transportation against rules.

Though the glaring actions of Aruna Kumari have been brought to the notice of the Lok Ayukta by some individuals (vide complaint number 3354/2013/B1 dated 04.11.2013), the then Mines Minister had the audacity to stall the demand notice on January 9, 2014, days before resigning from the cabinet.

The matter has come to light following a complaint lodged by B Rammohan Reddy who alleged that M/s Rock Sand Minerals Private Limited MD Purnachand was habituated to doing illegal mining and was also avoiding payment of seigniorage fees and other taxes since 2009 with the connivance of some officials.

During enquiry, it was found that the said company was routinely involved in illegal transportation of stone and the seized delivery challan books evidently established the same.

The Central vigilance squad in the office of the director of mines and geology in its report dated 28.11.2009 submitted that the company illegally excavated and transported 3,72,929 MT of rock and recommended for recovery of seigniorage fee along with penalty of `3.36 crore penalty under rule 34 of Andhra Pradesh Minor Mineral Concession rules, 1966.

The total amount proposed to be recovered from the company was estimated at `32.84 crore. The illegal mining and excavations have taken place in 23 acres of Survey No. 248 of Bandamadaram village and 48.93 acre in Survey No. 345 of Girmapur village, both in Medchal mandal of Ranga Reddy district.

Strangely, the company continued illegal quarrying and transported boulders against rules even after receiving notices from the mining department, forcing government to conduct multiple surveys in the said survey numbers.

The then Minister issued instructions in a memo No. 496/ M.II (1)/2014-1, dated 09.01.2014 staying the demand notice No.5842/M2/2012 dated 05.12.2013 of the assistant director of mines and geology until further orders.

Meanwhile, the matter has already reached the office of Lok Ayukta, which is likely to take a final call on the subject based on the submissions made by the then Industries and Commerce (Mines) principal secretary Sabyasachi Ghosh.

The latter submitted to the Lok Ayukta that government had stayed all proceedings against the private company till further orders. Department enquiry revealed that the then assistant director of mines and geology T Samuel Jacob has been identified as a key suspect in the case.

Strangely, he has been transferred and posted at the Office of director of mines and Geology in Hyderabad, despite the Mines director insisting on his suspension and initiating disciplinary action against the accused official.

Jacob, according to the department enquiry findings, had blatantly failed to furnish the records sought by higher officials in the matter, forcing the deputy director of mines and geology to initiate disciplinary action against Jacob and also his transfer as he was determined to ignore the instructions of both the director of mines and geology and deputy director of mines and geology in the matter.

The enquiry also found other allegations against Jacob to be correct wherein he had suppressed certain facts and favoured M/s Rock Sand Minerals Private Limited.