Lessee-Contractor nexus under scanner

BHUBANESWAR: In a move to break the nexus between the mining lease holders and third party contractors raising minerals, the Government has started investigation into the financial transactions between the two.A six-member official committee, currently in Joda, is examining all relevant documents pertaining to mining lease and the arrangement between the lessee and the third party for raising ores in violation of the Mineral Concession (MC) Rules, 1960. The committee comprising officers from the Steel and Mines Department, directorate of mines, commercial tax and Orissa Mining Corporation (OMC) has been asked by the Government to examine the audited balance sheets, profit and loss account along with all the schedules of the lessee, mining contractor, power of attorney holder or agency involved in formal and informal arrangements with the lessee regarding mining, financing and sharing of profits. The other documents to be examined by the committee include, lease deeds and agreements, tax audit report along with annexure of the lessee and the contractor, ledger account of the contractor in the books of the lessee along with supporting documents and bank accounts and books of accounts of the relevant parties. The committee, which started investigation from Sunday, has been asked to inquire at least three mines and submit its report to the Government by July 25, a senior officer of the Steel and Mines Department told this paper. The Government constituted the committee following allegations from ruling BJD MLA and former minister Debasis Nayak that raising of minerals by third party is in violation of the Mineral Concession Rules. In a recent letter to Chief Minister Naveen Patnaik, Nayak said several politicians having nexus with contractors are illegally raising and trading ores in Keonjhar and Sundargarh districts. He further alleged that Triveni Earth Movers Ltd and Sanatana Mahakuda, a defeated candidate from the Champua constituency, forcibly took over the mining operations of several mines from mines owners. According to Section 37 (1) of MC Rules-1960, no lessee can assign, sub-let, mortgage or in any other manner transfer the mining lease without the prior written consent of the State Government.