Odisha lacks system to detect mining lease transfer

Odisha Channel Bureau Bhubaneswar, July 28: Odisha Government did not have a mechanism to detect transfer of mining leases without its previous consent, according to the Comptroller and Auditor General of India.In its latest report on revenue sector that was tabled in the State Assembly on Monday, the CAG said “audit scrutiny of 18 cases relating to transfer of MLs registered in two Registration Offices, between 2003 and 2012, eight lessees without previous consent of the State Government made arrangements, by registration of documents titled as Partnership (one case) / General Power of Attorney (seven cases) for transfer of interest and operational rights in respect of seven MLs over 639.553 hectare with iron, manganese, lime stone and quartzite minerals, by which operation of their mines would be substantially controlled by a person other than the lessee”.“However, department did not have a mechanism in place to detect such cases.The registering authorities also did not ensure prior approval of Government for registration of such deeds.Thus, department failed to notice such irregular transfers of mining leases and take suitable action to comply with provisions of Rules,” the CAG said.“In reply, Government stated that four lessees had violated the rules, in two cases no lease was granted and one case was under examination.However, the reply is silent about the action initiated against lessees.In one case, no reply was furnished.”Under Rule 37 of MCR, the lessee shall not without the previous consent in writing of the State Government, assign, sub-let, mortgage, or in any other manner, transfer the mining lease, or any right, title or interest therein or enter into or make any bonafide arrangement, contract or understanding whereby the lessee will or may be directly financed to a substantial extent by, or under which the lessee’s operations or undertakings will or may be substantially controlled by any person or body of persons other than the lessee.The State Government may determine any lease at any time of the lessee has, in opinion of the State Government committed any breach of any of the above provisions.