Indian Iron Ore Mining Mess - Exporters Liable for Action Under FEMA.

The Karnataka state government sprang a surprise before the Karnataka High Court when it said that several mining companies and those involved in export of iron ore had violated norms of the Foreign Exchange Management Act.

The government made this submission when a Division Bench comprising Chief Justice JS Khehar and Justice AS Bopanna was hearing writ petitions by eight ore exporting companies seeking to withdraw the cases they had filed.

The Bench orally said the government can proceed against companies if they are found to have violated the law. It then permitted the companies to withdraw the petitions.

The companies PJS Overseas Ltd, Swastic Steels, Shree Lal Mahal Industries, Metachem Enterprises, Doddanavar Brothers, Shree Lakshmi Vankatesh, ILC India Ltd and Ashapur Minerals had laid claim to 190,000 tonnes of iron ore at Belekeri port in Karwar district.

When the State Government refused to allow the ore companies to lift the ore, they approached the High Court. When the matter came up, the companies wanted to withdraw the petitions.

Government advocate Mr Ravindra Kolle opposed withdrawal of the petitions. He said investigations are still going on to find out how they had illegally exported ore from Belekeri and Karwar.

He said apart from the Lokayukta, investigations are underway by the Criminal Investigation Department and Forest Department into the illegal export of ore. If the petitioners are allowed to withdraw, the State will have to hold the stevedores responsible for the illegal export of ore.

Mr Kolle said if the export of ore is quantified, the state should receive INR 210 crores from companies. Where has this money gone and where is the amount due to the state.

Source : steelguru.com