The State Government on Wednesday 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 (FEMA).
The Government made this submission when a Division Bench comprising Chief Justice J.S. Khehar and Justice A.S. Bopanna was hearing writ petitions by eight ore exporting companies seeking to withdraw the cases they had filed.
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 1.9 lakh 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 on Wednesday, the companies wanted to withdraw the petitions.
Government advocate Ravindra Kolle opposed withdrawal of the petitions. He said investigations were 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 (CID) 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, he said.
Mr. Kolle said if the export of ore is quantified, the State should receive Rs. 210 crores from companies. Where has this money gone and where is the amount due to the State, he asked.
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.
No relief to Lad and Sons
There was no relief to V.S. Lad and Sons which is engaged in mining in Bellary district.
A Division Bench comprising the Chief Justice, J.S. Khehar, and Justice A.S. Bopanna did not pass orders on an application by the company urging the Bench to modify its earlier orders.
The company said the court had permitted it to go ahead with mining in undisputed area in Bellary district. It said the court had asked the authorities to undertake a survey and file a report.
In its application, V.S. Lad said it would be expensive and time-consuming if it fenced 91 hectares of undisputed land. It suggested that it would be more appropriate and cost effective if the disputed area is fenced.
The Government opposed the application, saying that the undisputed area has to be fenced to demarcate the forest area from mining area.
The Bench directed the constitution of a committee comprising officials of the Forest and Mining departments and a representative of the Lokayukta to look into the issue and file a report in court by November 15.
The committee was asked to commence work on demarcating the areas from November 8, 2010.
Court Commissioner
A Division Bench comprising the Chief Justice, J.S. Khehar, and Justice A.S. Bopanna appointed an advocate Muniraju, as the court commissioner to go into the issue of encroachment of forest land by a stone quarry at Hutakmane in Yellapur taluk of Mangalore district.
The petitioner, Murali T. Nair, had approached the court after the Forest Department cancelled his lease for stone quarrying stating that he had begun quarrying in the reserve forest and that it is illegal.
The Government said the lease was cancelled as Mr. Nair was quarrying within a radius of ten kilometres of a reserved forest, which is prohibited under the law. With both sides sticking to their stand, the Bench appointed a Court Commissioner and asked him to go into the dispute and submit a report.
