Karnataka minister Santosh Lad quits over mining scam

The multi-crore mining scam in Karnataka on Friday cost Congress minister Santosh Lad his job amid mounting pressure for his resignation ahead of the state legislature's session from Nov 25 at Belgaum.

Ending the day-long suspense and political drama, the 34-year-old mining baron, who was minister of state for infrastructure development, information and Kannada and culture departments finally submitted his resignation letter to Chief Minister Siddaramaiah.

"I have tendered my resignation to the chief minister in view of the allegations of illegal mining against me and my company and to avoid any embarrassment to our government," Lad told reporters later.

Lad's mining firm VS Lad & Sons was indicted by then Karnataka ombudsman (Lokayukta) Justice N Santosh Hegde for illegally extracting and supplying about 10,000 tonnes of iron ore during 2008-10 from Sandur mines in Bellary district, about 330km from here.

Lad's firm is also being probed by the Central Bureau of Investigation (CBI) on a Supreme Court directive after its appointed central empowered committee (CEC) classified it under 'C' category mining lessee and directed the state government to cancel its license for allegedly committing large scale illegal mining.

"Though there was no pressure from the CM or the party's high command, I have resigned because I don't want my party to be embarrassed further. I am open to investigations and am sure I will be proved innocent," Lad asserted.

Lad is the first minister to quit the six-month-old Congress government after the party returned to power following its victory in the state legislative assembly elections in May.

The resignation came after whistle-blower SR Hiremath of Samaja Parivartanan Samudayaa, an NGO, on whose petition the apex court ordered the CBI probe, recently met Governor HR Bhardwaj with documentary evidence to seek Lad's removal from the cabinet.

After the opposition Bharatiya Janata Party (BJP) lawmakers petitioned the governor with the same demand, Bhardwaj advised the chief minister to look into the matter.

The BJP and two other opposition parties -- Janata Dal-Secular (JD-S) and Karnataka Janata Party (KJP) threatened to disrupt the state legislature session at Belguam, about 500 km from here in northern Karnataka, if Lad was not removed from the ministry.

The Lad family has been in mining business for decades and the controversy over Santosh Lad's alleged involvement in illegal mining has pitted him against his cousin Anil Lad, a Congress lawmaker from Bellary district.
Courtesy:
Friday, Nov 22, 2013, 23:13 IST | Place: Bangalore | Agency: IANS
http://www.dnaindia.com/india/report-karnataka-minister-santosh-lad-quits-over-mining-scam-1923423

Illegal mining scam: Lad on his way out?

The illegal mining scam may claim its first wicket in the Siddaramaiah ministry with Infrastructure Minister Santosh Lad expected to resign soon. Chief Minister Siddaramaiah on Thursday night is said to have asked Lad to quit ahead of the winter session of the state legislature set to begin in Belgaum from Monday.

According to sources, Lad, who is in New Delhi, is lobbying with senior Congress leaders to save his post. He is expected to return on Friday and tender his resignation, latest by Saturday.

Sources close to the CM said the decision is being seen as part of Congress strategy to blunt the opposition attack during the Belgaum session. Also, growing pressure from within the party seems to have influenced the CM’s decision in asking Lad to quit, sources added.

Fresh documents released
Meanwhile, social activist S R Hiremath on Thursday released a fresh set of documents against Infrastructure Development and Information Minister Santosh Lad and alleged that four mining companies were not separate companies but interconnected. The four mining companies are VS Lad and Sons, VSL Mining Company Pvt. Ltd, VSL Steels Limited and Aina Minerals Trading and Logistics.

Hiremath said a letter issued by the State Bank of India (SBI) to the Central Empowered Committee (CEC) establishes the interconnection. Hiremath said all the four companies hold common interest and interconnection among these companies in several areas have been established. Hiremath said these were substantiated by the cover letter issued by the SBI to member secretary to CEC M K Jiwrajka, dated October 31, 2013, saying that VSL Mining Co Pvt Ltd is connected with VS Lad and Sons.

Hiremath also urged the state government to issue a notification under Section 5 of the Delhi Special Police Act, 1946, which enables the CBI to probe.

Minister Santosh Lad said the companies were represented by different people. “How can it be called interconnected if representatives of the companies are different. I am a partner in VSLS and also promoter of VS Steels Limited. It is only a financial statement of the SBI and I am not connected with the other two companies,” Lad said.
Courtesy:
By Express news Service - BANGALORE
Published: 22nd November 2013 08:22 AM
http://newindianexpress.com/states/karnataka/Illegal-mining-scam-Lad-on-his-way-out/2013/11/22/article1904629.ece