Notice to 60 mining firms for not paying FDT

The Forest department has cracked down on iron ore mining firms for not paying Forest Development Tax (FDT) to the government.

Among firms facing action is V S Lad and Sons, in which Minister of State for Infrastructure Development Santosh Lad is a partner.

Notices have been so far issued to about 60 firms for defaulting FDT as per the provisions of Karnataka Forest Act. The deputy conservators of forest (DCFs) have been directed to issue notices to all companies that have failed to pay tax as per the Karnataka High Court’s recent order, Additional Principal Chief Conservator of Forests (Forest Conservation) Punati Sridhar said.

According to the Lokayukta report on illegal mining, about 65 mining companies in Bellary, Chitradurga and Tumkur districts have defaulted on FDT payment of about Rs 500 crore during 2006-10. But, the government had not taken any action either to recover the dues or bring the erring companies to book.

Sridhar said companies that have already commenced mining activities have been given 15 days time to reply to the notices, while the others that have not secured the permission to mine have been given one month’s time.

The companies have to disclose their transactions as per invoices prepared and pay the FDT accordingly. The department will recover the FDT along with the interest and penalty, he added.

The High Court, while hearing a case pertaining to mining recently, had directed the department to verify whether all the companies have paid FDT as per the invoices. Hence, the direction has been issued to all field officials to take action against erring firms, he said.

Lad’s claim

Lad said the charges of illegal mining made against him by Samaja Parivarthana Samudaya president S R Hiremath were politically motivated.

On Wednesday, Hiremath had released details of Forest Offence Cases (FOCs) filed against V S Lad and Sons and had alleged that the firm had mined ore beyond its lease area and stored it in a beneficiation plant and stockyard.

The second FOC accuses the company of illegal transportation of the seized ore by violating an order of the Karnataka High Court. Lad said in a statement that FOC regarding illegal transportation of seized ore was filed at the instance of the then Bellary district in-charge minister G Janardhana Reddy in August 2010.

The FOC was filed by RFO Mahesh Patil who has been arrested by the CBI, he stated.  “The allegations that 81,000 MT of ore was transported by V S Lad and Sons is false. The entire quantity of iron ore was later auctioned as per the direction of the Supreme Court,” Lad stated.

Meanwhile, asked about the allegations against Lad, KPCC president G Parameshwara said Chief Minister Siddaramaiah had verified all the documents and found that allegations are false. “There is no evidence against him. We will stand by the decision of the chief minister,” he stated.

Minister in Delhi

Meanwhile, Lad’s sudden visit to the national capital has triggered speculations that he was trying to meet the Congress high command, to impress upon them that he should not be dropped from the Cabinet, following allegations of his involvement in the illegal mining activities.

Lad, who was here for the second time in last 10 days, told Deccan Herald that he came on personal work and not for any party activities. He also denied a news report that he was here to meet the party leaders.

Sources close to him said though Lad met some senior leaders during his last visit, this time he did not meet anybody.