Just where is the probe headed?

Former judge claims that the CID arrested minor employees just because they represented the mining firms in court, while no action has been taken against the owners

Just where is the probe headed?

Former judge claims that the CID arrested minor employees just because they represented the mining firms in court, while no action has been taken against the owners

As the Crime Investigation Department (CID) probe into the case of stolen iron ore from Belekeri port progresses, loopholes in the investigation have seemingly surfaced. So far, only a handful of low rank employees of the errant mining firms have been arrested, while their owners have allegedly been spared.

Theft or scam? Documents have reveled that a mining firm backed by
G Janardhana Reddy has been using ILC Industries as a front to carry
out transactions overseas. Representation Pic

According to the CID, 20 per cent of investigation is completed and the investigative agency had filed chargesheet against three mining companiesu00a0-- Salgaonkar Mining, Tungabhadra Menarals, and Gimpex Limitedu00a0-- and a port conservator, last week, while five were arrested earlier.

Among the arrested four are low rank employees such as accountants and financial consultants of the mining companies. Mahesh Beliyia, port conservator of Bekere Port, who was taken into custody by the CID along with them, in last August, also figures in the chargesheet.

According to CID officials, they were arrested because they represented their respective companies in the court, when they had petitioned with a prayer to release the ceased ore, in last March. "I am astonished at CID's gesture," said a retired judge of the high court. "Why have they arrested the employees for only representation in the court, while mine owners go scoot free. I just can't understand."

Even in the chargesheet, employees with designations like supervisor, and senior manager are figured, while owners are not implicated.u00a0 For instance, K Chandran is a supervisor with Gimpex Ltd, and Ramachandra Vasu Nayak is a senior manager with Salagaonkar Minerals.

K S R Charan Reddy, DIG (CID), who is investigating the case, said, "The investigation is only 20 per cent done. There are many more steps to be taken and you can't say we have left alone the culprits as the action will follow."

While the forest deportment had filed complaint against some 58 mining companies accusing them of stealing the ore, the chargesheet is filed against only three companies so far. "We are scrutinising other companies also and they will also be brought to book," added Reddy.

The history
ILC Industries, promoted by Somashekar, had lifted 80,160 metric tonne of ore from the port after the forest deportment had seized it. The company was a front of the Obalapuram Mining Company, that belongs to G Janardana Reddy, tourism minister and mining lord from Bellary.

MiD DAY had reported about this last week. He said the mine owners were not arrested since they were cooperating well with investigators, and there was no threat from them of tampering documents and destroying evidence.

"This is just an eyewash," said V S Ugrappa, a Congress leader. "How can the CID say that the mine owners would not destroy evidence if they are not arrested? It is clear that the agency is acting under political pressure." He also wanted to know why the bank accounts and the hard disks of the mining companies were not seized.

Rubbishing the charges, Reddy said there was no question of bowing down to any pressure, while he said harsh steps such as ceasing the bank accounts might follow soon.

Lokayukta is probing separately on the same issue and the authorities said it would be submitting the report by next March.