CAG detects anomalies worth ₹226.65 cr in 148 mining leases

LUCKNOW: The Comptroller and Auditor General (CAG) of India has detected large-scale irregularities in the mining of minerals in the state in 2017-18, according to the CAG report tabled in the state assembly on Monday.

The CAG report said irregularities amounting to Rs 226.65 crore were detected in 148 leases, adding that the department should initiate systemic measures to ensure that the shortcomings repeatedly reported by audit did not recur.

The department should introduce more effective measures to monitor and ensure recoveries of large amounts of non/short realization pointed out in the audit reports, the CAG report observed.

CAG found that the cost of minerals was not realised from the contractors for works executed without transit passes.

The department did not recover the cost of minerals amounting to Rs 26.27 crore and due penalty in 334 cases from contractors undertaking civil works, for raising minerals without lawful authority.

CAG recommended that the mining department should ensure coordination with the executing agencies undertaking civil works to ensure contractors

sourced minerals from legitimate lessees.

CAG detected that excavation of minerals was done in the state beyond the limit fixed in the environment clearance.

The cost of excess excavated mineral valued at Rs 1.66 crore was not recovered from two lessees, it added. CAG also found a violation in the mining plan and excavation of minerals beyond the limit fixed in the mining plan. The cost of excavation of minerals valued at Rs 3.35 crore was not recovered from one lessee, it added. The cost of excavated mineral valued at Rs 3 crore was not recovered from one lessee for excavating minerals without a mining plan, CAG said.

During audit, CAG found that excavation of brick earth amounting to Rs 1.77 crore was not recovered in 36 cases from brick kilns operating without environmental clearance.

CAG recommended that the mining department should ensure that minerals, including brick earth, were not excavated without the requisite environmental clearance to curb illegal mining. CAG stated that royalty and permit application fee was not realised from the brick kiln owners as well.

Royalty of Rs 6.94 crore and permit application fee of Rs 13.14 lakh were not realised in 660 cases from brick kiln owners though the rule was specified in the onetime settlement scheme for the brick kilns announced by the state government, it said.

During the audit, CAG detected that 19 lessees deposited ‘dead rent’ of Rs 1.85 crore for the lease period against recoverable amount of Rs 3.94 crore.

The mining department did not make any effort to recover short deposit of ‘dead rent’ of Rs 2.09 crore, CAG said.