Vigilance and enforcement has recommended action against the mines department officials for not taking action as per the law in the case of evasion of crores of rupees of ‘seigniorage’ by high quality granite exporters and lease holders. The charge: faking the volume measurements of granite blocks.
The large-scale illegal transportation of granite blocks by the lease holders of Karimnagar, Prakasam, Nizamabad and Warangal districts is conducted through Kakinada and Krishnapatnam ports.
Vigilance asked the mines department to collect the normal ‘seigniorage’ fee along with penalty to the tune of Rs 28 crore from the companies.
Vigilance pointed a finger at mines and geology assistant director of Karimnagar M.K. Laxman Babu, AD (vigilance) Mr K. Narasimha Reddy and other mining officials R. Praveen, S. Mohan Lal, Saidulu and Niranjan.
The officials were faulted for not conducting inspections of granite quarry lease areas and checking measurements of the granite blocks at regular intervals. Vigilance has asked the government to take disciplinary action against the officials.
The probe began in 2011 when vigilance officials verified the granite blocks at railway stock yards of Kazipet in Warangal, Peddpalli, Jagtial in Karimnagar and Kakinada sea port. The officials found that there were variations in measurements and volume of 7,699 granite blocks out of the 8518 which were checked.
The vigilance officials verified the stock at Kakinada port and found a huge number of blocks stocked by five clearing and forwarding agents: Elite Shipping private limited; JM Baxi and co; Pavan Shipping and Logistics, Puyvast maritime India; AS Shipping Agencies private limited at Kakinada.
The blocks were received by the clearing and forwarding agents through road and railway rakes for export to various countries.
Vigilance said that the lease holders in Karimnagar had evaded seigniorage fee by either deliberately under measuring the blocks and transporting more than one block under the same transit. As for granite blocks in Prakasam, the officials of Nellore are verifying them at Surareddypalem and Krishapatnam.
Sources said the granite industry has probably evaded around Rs 240 crore during a year. Names like Galaxy, Jet Black, Tan Brown, Chilly Red are some of the famous granites of AP.