Orissa launches drive to detect violation of MC Rules

With allegations of illegal sub-lease of mines to private parties by lease holders pouring in, Orissa Government has launched an operation to detect such "frauds", official sources said.

"We have set up a committee comprising government officials and chartered accountants to verify violation of Rule-37," Steel and Mines Minister Raghunath Mohanty said.

Giving sub-lease illegally to private parties amounted to violation of Rule 37 under the Mineral Concession Rules-1960.

The committee had so far raided and verified eight mines in two phases, the minister said adding other mines would also be scrutinised in a phased manner, he said.

"The government is likely to cancel lease of the firms found guilty of violating Rule-37 of the Mineral Concession Rules," he said adding the process of verification of records was likely to be completed by September.

The charted accountants will verify balance sheets, audited accounts, tax audit reports, income tax and VAT returns and other documents of mines, the minister said.

The issue has recently been brought to the notice of the chief minister by ruling BJD MLAs Debashis Nayak and Bhagirathy Sethi.