Jindal Steel accused of evading revenue to K'taka exchequer

Bangalore, Mar 28 (UNI) Leader of the Opposition in the Karnataka Legislative Council H K Patil today accused the private Jindal Vijayanagar Steel Limited (JVSL), Hospet, of committing an economic fraud, resulting in a loss of over Rs 1,000 crore to the State exchequer.

Speaking during a discussion on the State budget for 2007-08 in the House, he brought to the notice of the Council that the company had extracted over one crore tonnes of iron ore, worth about Rs 1,000 crore, without paying a single paise to the State Government.

Explaining in detail the fraud, Mr Patil said the JVSL had in 1998 signed a memorandum of understanding with the State-owned Mysore Minerals Limited (MML) to float another company called Vijayanagar Mining Private Limited, with 51 per cent stake to extract iron ore in Bellary district and supply to its plant. Even before the deal was completed and share holding agreement was made, the MML alloted mining land to VMPL, which had extracted over one crore tonnes of iron ore for JVSL since 2001.

He strongly urged the Industries Minister to cancel mining operation by the VMPL and take immediate measures to recover the dues. ''Every minute the State Government delays on the issue, the exchequer will further suffer heavily by losing revenue,'' he said.

Intervening, his party colleague K C Kondaiah said the House should not take any hasty decision on Mr Patil's demand and appealed to the Minister to convene a meeting of the State officials and JVSL authorities to discuss the issue. Immediate stoppage of mining operation would harm the operations of the JVSL, which paid rich revenue through taxes to both the Union and State Governments.

However, members of the treasury bench, including Y S V Dutta, Abdul Azeem (both JD-S), Basavaraj Bommai, Dr M P Nada Gouda (both JD-U) and Narayana Swamy (Ind) urged the Government to take immediate punitive action against the JVSL and take measures to stop fraudulent operations of the company and collect the dues. Members, cutting across party lines, urged the State Government to hold inquiry into the entire deal and punish the officials concerned.

Major and Medium Industries Minister Katta Subramanya Naidu, in his reply, assured the House that he would convene a meeting of top officials of his department and take a decision on the issue. The State Government would not make any comprimise in recovering its lost revenue.

UNI