Coalgate: CBI gives SC a 'Birla diary' showing 'payments' to politicians

The CBI, probing the coal blocks allotment scandal, has handed over to the Supreme Court a "diary" it recovered from the offices of the Aditya Birla Group that lists an estimated 1,000 payments purportedly made to politicians and MPs of several parties by a Birla company trust over a 10-year period.

This diary was recovered during the agency's October 16 raids on the offices of the group following its FIR alleging corruption in the allotment of Talabira block to Hindalco. This recovery was detailed by the CBI in its status report to the apex court.

The dates on which these payments have been made, sources said, are around the time of two Lok Sabha elections and several elections of state Assemblies. The CBI has handed over this diary to the Supreme Court and is awaiting directions.

Another diary, being described as a "notebook," recovered by investigators of the Income Tax Department, shows receipts adding up to almost Rs 100 crore and top CBDT (Central Board of Direct Taxes) sources have confirmed to The Indian Express that the Birla group has agreed to pay taxes on these receipts.

Responding to a detailed query on these diaries by the investigating agencies, the Birla company spokesperson told The Indian Express: "Since there is an ongoing investigation into this matter, it would not be appropriate for us to comment.''

Sources said that while the CBI searched the offices of the group in four cities, the Income Tax Department was called in to help in the recovery of Rs 25 crore in cash from the group's corporate office in New Delhi.

Simultaneously, the Income Tax investigation wing confronted officials of the Aditya Birla group with another "notebook'' listing receipts totalling almost Rs 100 crore. This "notebook" was recovered by IT investigators from the same address where they found the Rs 25-crore cash and, significantly, this amount is understood to be part of the listed receipts.

Following the recovery of cash, the company issued a statement saying it is "taken aback by the discovery of cash at one of its offices by the investigating agency. It has taken a very serious view of the matter...''

Sources said the IT Department has already approached the CBI with a request for a copy of the "political'' diary to establish whether the purported payments to politicians and MPs have been declared by the company or whether they have claimed tax exemption for the same.

Officials said the CBI has since asked IT authorities to approach the Supreme Court for the diary. A formal request from IT is expected to reach the Supreme Court by early next week.

Diary, Notebook
*One lists estimated 1,000 payments purportedly made to politicians and MPs of several parties by a Birla company trust over a 10-year period

*Another shows receipts adding to Rs 100 crore

*Birla group said to have agreed to pay taxes for these

*IT wants copy of 'political' diary

*Spokesman: "Since there is an ongoing investigation into this matter, it would not be appropriate for us to comment.''
Courtesy
Ritu Sarin : New Delhi, Fri Dec 06 2013, 08:42 hrs
http://www.indianexpress.com/news/coalgate-cbi-gives-sc-a-birla-diary-showing-payments-to-politicians/1203974/0

MEMORIAL SCAM: Maya men indicted in 1.4k cr scam: Naseemuddin, Kushwaha Land In Lokayukta Net

Lucknow: With less than a year to go for the general elections, BSP bigwigs and former ministers Naseemuddin Siddiqui and Babu Singh Kushwaha got embroiled in a Rs 1,410-crore scam on Monday. The UP Lokayukta has indicted them for wrong-doings in the buying of sandstone from Mirzapur used in five dalit memorials in Lucknow and Noida.

The Lokayukta also named 197 others, which makes the memorial scam among the larger ones to rock UP. The misappropriation was in the form of overspending of public money, said Lokayukta NK Mehrotra, who also called for a CBI inquiry, or one by any other agency not controlled by the state government. Mehrotra also called for special trial courts.

The Lokayukta, who handed over his 88-page report to CM Akhilesh Yadav, exonerated former CM Mayawati for lack of evidence and said there was no proof against any bureaucrat either.

However, the 199 people indicted include BSP MLA Ramesh Chandra Dubey and two former BSP MLAs — Anil Kumar Maurya and Sharda Prasad. The other indictees are two advocates, 57 engineers, 20 consortiums, 60 marble supply firms, 37 accountants and eight others.

The report expresses dissatisfaction over two Economic Offences Wing reports for their silence on the involvement of 37 accountants of Lucknow Nirman Nigam. The Lokayukta report recommends the filing of FIRs against 19 people, including the two former ministers, former Nirman Nigam MD CP Singh, joint director (mining) S A Farooqui and 15 engineers who fixed the rate for the purchase of sandstone from Mirzapur. Justice Mehrotra said there was no need of any further open investigation and criminal investigation on the FIR should be completed within six months.

The Lokayukta said besides documentary evidences, CP Singh and Farooqui had stated during their testimony that all decisions were taken at the residences of Naseemuddin Siddiqui and Babu Singh Kushwaha. Similarly, Kushwaha said all major decisions were taken by Siddiqui while the second-in-command in the Mayawati government told the Lokayukta that all decisions were taken at government level. “I believe the government obviously includes ministers, as Siddiqui was heading the nirman nigam while Kushwaha was heading mining, hence they were directly responsible,” said Justice Mehrotra.

The Lokayukta said when the construction work began, the rate of pink stone was between Rs 40 and Rs 50 per cubic feet. The contractors, engineers and consortiums, however, fixed the rate at Rs 150 per cubic feet claiming this was the rate; the Lokayukta added that assuming that the rate might have increased from Rs 50 to Rs 100 per cubic feet; there was still overcharging by Rs 50. The overspending of over Rs 1,410 crore was computed on the extra Rs 50 , said Justice Mehrotra.

In the report, the Lokayukta also recommended recovery of 30% of the amount from the two ministers, 15% each from CP Singh and SA Farooqui and 15 engineers and 5% each from the accountants.
COURTESY:
TIMES NEWS NETWORK
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/05/21&PageLabel=7&EntityId=Ar00700&ViewMode=HTML

MEMORIAL SCAM: Lokayukta Says Mayawati Aides Looted 1,400 cr

The Uttar Pradesh Lokayukta has found that more than 1,400 crore was ‘siphoned off ’ during construction of Dalit memorials by the previous government headed by BSP leader Mayawati.

Strangely, it gave a clean chit to her, while indicting her PWD minister Nassemuddin Siddiqui and mines minister Babu Singh Kushwaha, both of whom were then close to Mayawati. Mehrotra said that Siddiqui and Kushwaha were the main accused in the scam and recommended that an FIR be lodged against the two. He said that . 1,400 crore should be recovered from them. The report has recommended a probe against 199 others who were ‘clearly involved’ in the scam.

Lok Ayukta Justice (retd) NK Mehrotra in his report said that around . 4,188 crore was spent on the purchase and finishing of stones for the memorials and around 35% of it was siphoned off by politicians, bureaucrats, engineers, accountants and contractors.

Siddiqui continues to be BSP's national general secretary, whereas Kushwaha fell out with her over the NRHM scam, joined BJP and is currently in Dasna jail in cases related to the NRHM scam.

The Lok Ayukta report has been sent to Chief Minister Akhilesh Yadav who will decide on the action to be taken, including lodging FIR's against Siddiqui and Kushwaha. Mayawati had during her regime from 2007-12 got several memorials constructed in Lucknow and Noida, which attracted widespread accusation of misuse of official funds. It became a poll issue and Mayawati's main rival, Samawadi Party, had promised to probe the matter.
COURTESY:
OUR POLITICAL BUREAU LUCKNOW 
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETM/2013/05/21&PageLabel=3&EntityId=Ar00303&ViewMode=HTML

Mining Scam : Illegal mining-losses between Rs 20k to 30k crore

Illegal mining in Karnataka is a matter that is being investigated by many agencies and the losses that each of these agencies have estimated is shocking in number. The latest is a report by the Comptroller and Auditor General (CAG) of India which has estimated the loss caused due to illegal mining at Rs 3414 crore and ironically the state government has been able to recover just Rs 7.22 crore. However according to Anita Pattanayak, Principal Accountant General (Audit) of the CAG, Karnataka, “ if one goes by the current value of ore then the loss can be at an estimated Rs 25000 crore. The current market value of iron ore is at Rs 4800 per metric tonne.

The report of the CAG between the years 2006 and 2011 was put out before the Karnataka legislative assembly. The losses which are mentioned in the report are as per the market value of iron ore in those respective years. However if one takes into account the value of ore today, then the loss is at Rs 25000 crore.

The CAG in its report has made the estimation based on the amount of Rs 750 per metric tonne of iron ore. Today the market value is seven times higher and hence the figure of Rs 25000 crore could be arrived at. However the government of Karnataka which had claimed that it had acted against illegal mining managed to recover just Rs 7.22 crore and that is once again as per the estimated value of Rs 750 per mt tonne.

Photo Courtesy - Codrington, Stephen. Planet Geography 3rd Edition (2005)

Former Lokayukta of Karnataka, Justice Santhosh Hegde who had put out the first report on illegal mining had estimated the loss to be at around Rs 16085 crore. This was a figure arrived at based on the market value of the year in question and the report was based on the mining losses between the years 2000 and 2011.

The report by the CAG would only go on to show the sudden rise in illegal mining between the years 2006 and 2011. It has been considered to be the peak time for mining and the demand for ore has shot up during the China Olympics. This has led to a lot of illegal mining and hence the losses too were at a record high.

In the report by the CAG it states that the department of mines and geology had accepted audit observations of Rs 1212.12 crore and had recovered just Rs 7.22 crore. The report also came down on the Karnataka government for not having drawn up any plan to monitor the Karnataka Mineral policy.

Justice Hegde, says that the valuation done by the CAG is very much in tandem with the report put out by him when he was the Lokayukta of Karnataka. The CAG agrees with the valuation done by us. We had done the valuation for the years 2000 to 2011 and we estimated the losses as per the market value of iron ore of each year. As per our estimates it was at Rs 16085 crore. The CAG has estimated as per the value of Rs 750 per metric tonne and hence finds the loss at Rs 3414 crore. However the loss is much higher if taken at the current market value of Rs 4800 crore per metric tonne.

The Central Bureau of Investigation is also looking into the case and puts the loss at Rs 15000 crore. However in specific to the Obulapuram Mining Company run by Janardhan Reddy it says that the loss caused by this company alone is Rs 5100 crore.

The Central Empowerment Committee which was appointed by the Supreme Court to look into illegal mining in Karnataka is yet to put out a complete report on the issue. But it had told the Supreme Court that it would estimate the loss at around Rs 30000 crore as per the current market value of iron ore.

The Goa scenario: 
The scene is equally bad in Goa too. The matter which was first probed by the Justice MB Shah Commission says that the total loss caused to the exchequer of the state due to illegal mining is Rs 35000 crore as per the current market value of iron ore. This is around Rs 10000 crore more than Karnataka. The CEC too in its report which was submitted recently had estimated the loss at around the same amount. The CEC had submitted an interim report and would put up a final one in the next couple of months which would give a better picture of the loss due to illegal mining.

Photo Courtesy - Tagebau Garzweiler Panorama 2005 - Copy Right - Raimond Spekking

Modus operandi:
The modus operandi in both the states which have been badly affected due to this issue remains the same. In both the cases it has been found that illegal mining took place with the blessings of the government. In Karnataka it was the BJP, JD(S) and the Congress which facilitated illegal mining whereas in Goa the entire blame has fallen on the Digambar Kamath led Congress government.

Thanks to the involvement of politicians in illegal mining in both states they found it easy to flout the norms and mine illegally. In both the states the bulk of the mining was found in restricted areas such as forests which shook up the ecology of the region badly. Further it was also found that ore more than the permissible level was ferried out of the region. This had led to the loss to the state’s exchequer and in both states it was found that the recovery was a negligible amount.
Courtesy:
December 13, 2012
http://vickynanjapa.wordpress.com/2012/12/13/illegal-mining-losses-between-rs-20k-to-30k-crore/