JSW denies lokayukta charges of illegal iron ore mining

JSW Steel on Thursday sought to refute charges of illegal procurement and transportation of iron ore in Bellary district of Karnataka, seven days after the state lokayukta named the steelmaker and other large companies, including Adani Enterprises, of involvement in illicit mining worth over Rs16,000 crore.

Among other things, the report alleges that iron ore was transported illegally from a stockyard located near JSW's premises and run by Sri Swastik Nagaraj and Karapudi Mahesh and their associates.

Speaking at a conference in New Delhi, a team from JSW Steel led by joint managing director Seshagiri Rao and commercial director Jayanta Acharya, but with vice chairman Sajjan Jindal missing, refuted all charges made by the lokayukta, justice Santosh Hegde, in his report on 29 July.

The Sajjan Jindal-led group is also alleged to have paid money to former Karnataka chief minister B S Yeddyurappa's family members for a land transaction in return for pushing the company's case with the central government for acquiring new licences.

The payment was compensation for modifying a memorandum of understanding between JSW and the state-owned Mysore Minerals Ltd for mining iron ore from the Thimmappana Gudi mine in Bellary.

A detailed report of illegal mining, irregular purchase orders and illegal transportation of iron ore from mines to factories and ports formed part of the voluminous 25,000-page document that was made public last week, throwing the lid off on rampant mining in Bellary and also prompting the Supreme Court to direct a temporary clampdown on all mine activities in the region.