All quiet on the Rs 40,000 crore mining scam front: Why Raje must quit

[related-post]

Subsequent to this and other judgments of the Supreme Court, the Government promulgated Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015. A press release issued on the occasion identified removal of discretion as one of the prime motivations for issuing the Ordinance. The Government unequivocally claimed; “Essentially, Government intended to remove discretion in grant of mineral concessions. All mineral concessions are granted by the respective State Governments. They will continue to do so but all grant of mineral concessions would be through auctions, thereby bringing in greater transparency and removing of discretion”. The Ordinance was passed into a law- the Mines and Minerals (Development and Regulation) Amendment Act, 2015- in Parliament earlier this year and was notified in March. As per Section 10B (4) of the Act “For the purpose of granting a mining lease in respect of any notified mineral in such notified area, the State Government shall select, through auction by a method of competitive bidding, including e-auction, an applicant who fulfils the eligibility conditions as specified in this Act.”

For the Vasundhara Raje Government of Rajasthan, it is as if none of these judicial pronouncements were made and subsequent laws were never enacted, and as if the BJP manifesto never intended to deliver on its promises of transparency and accountability. Between October, 2014, and January this year, Raje government issued Prospecting Licences and Mining Leases for 653 mines in the state involving 22,085 hectares. This was done without any auction, without any attempt whatsoever to determine the realizable revenue from competitive sale of these perishable resources. Incidentally, the market value of these mines is over Rs. 40,000 crore. It was done hastily, under a cloak of secrecy. The Central Government was not informed. Presumably, informal go-aheads and guarantees of immunity from legal consequences were obtained. No auction notices calling for bids were placed in the public domain, let alone notified in the official gazette or exposed to public view on any website or by means of an advertisement. Of 11 mines in Karauli, five were given away in a mere 48 hours. It is not clear how much time the dozen odd layers of bureaucracy had to appreciate the facts of each case before signing off on the largesse. One of the mines was handed over for maximizing private profit at the cost of the exchequer in less than 12 hours. Many mines were allocated without obtaining environmental clearances, insisting on security deposits, and without fulfilling other necessary procedural requirements. One can only speculate the favors exchanged for such blatant disregard of Supreme Court’s directions and laws of the land.

This is a richly documented case in which the State Government has favored a chosen few through subversion of its mandate and the laws of the country. There is sufficient data in public domain, and more just beneath the surface, to justify suo moto cognizance by the Supreme Court of India, and investigations by the Comptroller and Auditor General of India, CBI, Income Tax Department, and the Enforcement Directorate. In order for any investigation to happen fairly, it is necessary to steady the machinery involved. That, one is afraid, is possible only if the Chief Minister, whose patronage and involvement in the sordid affair is evident at first glance, and everyone else in the decision-making chain, are removed from their positions of responsibility immediately.