One government panel said that allowing Vedanta for mining in the proposed area by depriving two primitive tribal groups, Kutia and Dongaria Kondh, would shake the faith of tribal people in the laws of the land.
Mining permission may bring severe situation as the private company, Vedanta has repeatedly violated the law, said the panel on Monday, Aug 16.
According the sources, the company is illegally occupying 26.123 hectares of forest land and its claim of following the state government orders is completely false.
"Since it has gone to the extent of forwarding false certificates and may do so again in future, the environment ministry would be well advised not to accept the contentions of the Orissa government without independent verification," said the panel.
Britain-based Vedanta Alumina, part of the Anil Agarwal-promoted Vedanta Resources Plc, however, said that mining permission in the hills was essential for it to reduce the cost of production.