According to the latest report of the Comptroller and Auditor General of India, iron ore was extracted in Chitradurga, Tumkur and Bellary districts in excess of the quantity approved in the mining plans from 2006-10. Iron ore worth INR 107.41 crore was extracted without approval in 10 mines in the three districts during this period.
The report said that in 10 cases, the Department of Mines and Geology failed to monitor whether iron ore was extracted in accordance with the mining plans approved by the Indian Bureau of Mines.
Verification of audit reports of the Department of Mines and Geology by the CAG revealed that against 4.124 million tonne of iron ore that was to have been extracted by the 10 lessees in the three districts, 5.119 million tonnes of ore was extracted. The 0.995 million tonnes of excess ore extracted illegally was valued at INR 107.41 crore.
After the CAG brought these deviations to the department's notice in September and November 2011, the Deputy Director of Mines and Geology in Chitradurga district said that demand notices were issued in December 2011 in respect of three lessees in the district.
However, no action was taken in respect of the seven leases in Tumkur and Bellary districts till October 2012.
The report pointed out several instances of the department permitting a few lease holders to extract mineral not specified in the lease deed prior to the grant of lease for that mineral. The CAG has sought clarification from the department on instances of iron ore being extracted in the mines where only manganese ore extraction was permitted. In one case, a lessee had extracted 0.1.5 million tonnes of manganese ore and 52,000 tonnes of iron ore without valid lease.