Karnataka CM Siddaramaiah slams 'evil forces' for misleading claims in mining lease row
Bengaluru, Apr 9 (PTI): Karnataka Chief Minister Siddaramaiah on Wednesday alleged that several attempts were being made by "evil forces" to create confusion over the renewal of mining leases.
His statement came after activist H Ramamurthy approached Governor Thaawarchand Gehlot, seeking a sanction to prosecute the Chief Minister in a mining-related case.
Ramamurthy claimed that mining approvals were granted at throwaway prices to nine firms involved in illegal mining, resulting in a loss of over Rs 5,000 crore to the state exchequer.
“It has come to light that in 2015, during his tenure, Sri Siddaramaiah allegedly granted ‘in-principle approval’ and deemed extension to nine private firms engaged in illegal mining,” the activist claimed.
“The renewal of these licences was reportedly done at throwaway prices, causing a significant loss of over Rs 5,000 crore to the state exchequer,” he added.
In response, Siddaramaiah said in a statement that multiple attempts had been made to create confusion over the mining lease renewal issue.
“Such misinformation has been circulating since I assumed office. Certain malicious forces are continuously trying to mislead the Raj Bhavan,” he alleged.
Under the MMDR Act, 1957—as it existed prior to 2015—lease renewals were applicable for 20 years. As per this provision, the government had granted only conditional in-principle approvals to obtain forest clearance for the renewal of mining leases, Siddaramaiah explained.
He added that on April 12, 2015, the central government amended the MMDR Act through an ordinance.
Following several stages of verification, it was concluded that the conditional approval letters issued to eight companies on February 9, 2015, for lease renewals were not valid.
These approvals were subsequently cancelled, and action was taken in accordance with the amended Act.
Siddaramaiah said that after reviewing the deemed extension proposals submitted by the Mines Department, the state government cancelled one case without considering it for a deemed extension, in accordance with a Supreme Court order.
In the remaining seven cases, deemed extension letters were issued with conditions—including submission of statutory forest and environmental clearances, a no-dues certificate, and compliance with the government's decision based on final investigation reports by agencies such as the CBI and the Special Investigation Team on illegal mining.
"Of these seven companies, two were not granted mining rights as they failed to submit the required statutory documents. Of the remaining five, three were granted mining lease rights during the BJP regime in 2020 and 2021," the Chief Minister added.
The remaining two cases were granted conditional deemed extension of mining lease rights through supplementary agreements in 2016 and 2018, he added.
“Therefore, in all these eight cases, the government did not incur any financial loss. Not a single piece of ore was extracted during this period,” Siddaramaiah said.
The Chief Minister claimed that similar cases had earlier been filed by opposition parties and individuals in various forums, but the complaints were closed as they were found to be baseless.
“After about 10 years, this case is being exhumed with political malice. I appeal to the intelligent people of the country not to believe the evil political conspiracies that are trying to poison their minds over a matter that has no substance,” he said in the statement.
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ED arrests Sandeepa Virk, 'cosmetologist' for alleged money laundering
New Delhi, Aug 13 (PTI): The Enforcement Directorate said on Wednesday it has arrested a woman, who claims to be an actor and a cosmetologist, under the anti-money laundering law in a case of alleged fraud and misrepresentation.
The agency said the purported links of the woman, Sandeepa Virk, with a Reliance Group executive, Angarai Natarajan Sethuraman (President, Corporate Affairs), are also under its scanner. Sethuraman, in a statement, denied any connection with Virk or any transactions related to her.
Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days.
A special court sent her to the ED's custody till August 14, the agency said. The woman claims to be the owner of a skin care products selling website named hyboocare.com, which the ED claimed was a "front" for money laundering.
She and her associates are being probed for allegedly exerting undue influence through "misrepresentation" and "defrauding" individuals by soliciting money under false pretences.
According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website.
The federal agency said in a statement that the woman was also "in touch with" Sethuraman, former director of erstwhile Reliance Capital Limited.
She was communicating with him regarding "illegal liaisoning", the ED claimed, adding that the searches at Sethuraman's residence "confirmed" these allegations.
"Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said.
The ED alleged that public money worth about Rs 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms.
The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said.
The ED claimed that besides this, a home loan of Rs 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged.
Sethuraman, in a statement, dismissed the allegations as "baseless". He denied any connection with Virk or any transactions related to her.
Detailing about Virk's web portal, the agency said it purportedly sold FDA-approved beauty products. However, the ED said the products listed on the website have been found to be non-existent and the portal lacks a user registration option and is plagued by persistent payment gateway issues.
A scrutiny of the website uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed.
"These factors, including limited product range, inflated pricing, false claims of FDA approval and technical inconsistencies, indicate that the website serves as a front for laundering funds," it said.
Another social media-hosted bio data of the woman said she is a certified cosmetologist.
The ED said several "incriminating" documents were seized during the searches and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded.
The money-laundering case stems from an FIR lodged by the Punjab Police.
Sethuraman said that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral.
