Mining money travels through black hole

BANGALORE: The Bellary mining quagmire has gained a new dimension in which money running into crores of rupees goes through a dark hole called benami transactions.
According to a Lokayukta probe, there are various levels in the mining industry — right from obtaining mining licence to export of ore. Though the entire business is run by one person, he handles each level in fictitious names.
Many small mining licences are in fictitious names and the persons, in whose names the licence exist, are difficult to find.After obtaining mining licence, they remove the ore and this is also done in the name of another company.
After removing the ore, it is stored in a a dumpyard next to the mines, which is also in the name of some other person and later, it is brought to Hospet or Sandur to another dumping yard, which is again in the name of another person. From then, it is taken over by transport people, which is in another name and later, is exported by another benami company.
“In many cases, we know that a single person is handling all the levels. We are trying to establish these links. We need many experts to give their opinion on the extent of mining that has taken place in each mine and how these transactions take place. We are taking help of many agencies outside the state also,’’ Lokayukta Justice N Justice Hegde said.
BELIKERI AGAIN
Belikeri port, from where over 8 million tonnes of seized iron ore was illegally transported, will be under the Lokayukta scanner again. This time, it relates to the export of iron ore to Pakistan, where one consignment was rejected.
In 2009, an export company — Twenty First Century Wire Rods Ltd — through a middleman in Dubai, exported two shiploads of iron ore to Karachi. However, one load containing 39,240 tonnes was rejected as it was of inferior quality. The middleman — Alsaa Petroleum Shipping — lodged a complaint with Sadashivnagar police and the issue was debated in the Pakistan assembly.
“Documents say the consignments were shipped from Belikeri. However, there are no records. We are exploring the issue,” Hegde added.