CAG digs out mining irregularities in Guj

he Comptroller and Auditor General of India (CAG) has detected a number of irregularities in the functioning of mining companies in Gujarat. In one instance, the country's top audit watchdog found Larsen & Toubro (L&T) guilty of "illegal or excessive excavation" on 10 different occasions.

"We noticed one quarry permit holder, namely Larsen and Toubro Ltd, was engaged in illegal/excessive excavation of ordinary earth and soft murram... on 10 occasions on different survey numbers," CAG stated in its recent report filed in the Gujarat Assembly.

These excavations were carried out between December 2010 and March 2012 in Sabarkantha and Rajkot districts. CAG also pointed out that no action was initiated against the company by the state government in this regard.

"If any excess quantity (of material) over that permitted quantity is found to be removed, the material shall be confiscated and the permit holder shall be liable for punishment under the provisions of the Indian Penal Code and the Gujarat Minor Mineral Concession Rules, 2008," the CAG report stated while highlighting the action that could have been taken in this regard.

During test-check of records of six district geologist offices, CAG noticed that the state's industries and mines department had not exercised the option of allocation of quarry leases by auction of minor minerals before 2010-11. "Government may speed up allocation of quarry leases by auction system to enhance transparency and ensure equal opportunity to all stakeholders...," the auditor stated in its report.

CAG also found that over 2,400 quarry lease applications for various minerals (received between March 2009 and September 2011) were pending for disposal. The department not only failed to dispose such applications within the prescribed time limit of six months, but the delay caused the quarries to remain idle, resulting in foregoing of revenue in form of dead rent, the report said.