Odisha government denies information on allegations of lowering grade of ore to evade royalty

Right to Information (RTI) activists have expressed concern over the denial of information on show-cause notices issued to mining lessees accused of evading royalty by manipulating the grades of iron and manganese ore in Odisha’s Kendujhar district.

Bhubaneswar-based RTI activist Pradip Pradhan had sought information from the Directorate of Mines and Geology on show-cause notices issued to mine owners allegedly involved in grade manipulation (declaring extracted ore as low-grade and subsequently selling it as high-grade). He had also sought details of the number of lessees involved in the alleged malpractice and reports received and verified by the Directorate of Mines.

“I had simply sought copies of the show-cause notices issued to mining lessees. My request was denied because disclosure of the information would hamper the ongoing investigation. However, the government has indirectly acknowledged the existence of such show-cause notices,” Mr. Pradhan said.

He questioned how making the notices public could hamper an investigation. “If this is the justification for withholding information, then publicly available court notices relating to corruption, land fraud and other irregularities should also be capable of influencing the course of investigations,” he said.

“A decade ago, both print and electronic media extensively reported on show-cause notices issued to mining lessees for extracting ore in excess of the limits permitted under environmental clearances. The Odisha government had subsequently imposed penalties exceeding ₹21,000 crore, of which more than ₹16,000 crore had already been collected,” Mr. Pradhan said.

According to the RTI activist, the practice of understating ore grades to pay lower royalties is an open secret. The issue was also once highlighted by Bhubaneswar MP Aparajita Sarangi at a press conference, he said.

“Information on the show-cause notices is not being disclosed amid allegations that certain unscrupulous officials may strike deals with corrupt mining lessees to waive penalties in exchange for illicit financial benefits. Had the investigation been transparent and open to public scrutiny, the government could have recovered penalties worth thousands of crores of rupees,” Mr. Pradhan alleged.