The CBI’s investigation into the Belekeri port scam in Karwar is likely to extend beyond the country's borders as the iron ore was illegally exported from it to China, Hongkong, Singapore, Indonesia, and other countries .
Going by Lokayukta chief investigating officer, Dr U.V. Singh’s mining reports, exporters sold ore by under-invoicing it to their own front companies in other countries. While some of the money earned this way was parked overseas, some of it was brought back to the country through hawala.
The CBI's probe could also extend to other states within the country as in addition to investigating the illegal extraction and transport of about 50.79 lakh metric tonnes of ore by four major export firms and the illegal export of eight lakh metric tonnes of seized ore from Belekeri port, it has also been told to do a preliminary inquiry into the export of another 32.27 lakh tonnes of iron ore as suggested by CEC of SC.
The CEC had submitted a list of 73 exporters to the apex court seeking a CBI probe into their operations. Many of these exporters had rushed to Bellary from other states to make a fast buck between 2008 and 2010 and had returned once mining was banned last year. Among them were even traders involved in other businesses like dry food, coffee and pan masala.
The Belekeri port, some 400 kms from the Bellary mines, was most sought after for exporting illicit ore as politicians and their henchmen had paid government officers to look the other way while the illegal business flourished. To help the CBI extend its probe across the country, the Supreme Court has ordered all government agencies, including the Income Tax Department to fully cooperate with it.