Bhubaneswar: The Comptroller and Auditor General (CAG) has flagged the Odisha government’s failure to recover ₹3,966.34 crore (including interest) in penalties imposed by the Supreme Court for illegal mining in the state.
The audit report, tabled in the Assembly on Wednesday, revealed lax enforcement six years after the court’s order.
In August 2017, the Supreme Court had directed the state to impose fines on mining lease holders who extracted iron ore and manganese without mandatory Environment Clearance (EC) or Forest Clearance (FC). The penalty was set at 100% of the mineral’s market value.
A subsequent report by the SC-appointed Central Empowered Committee (CEC) in January 2018 pegged the total compensation at ₹19,174.38 crore from 131 violators. However, records showed that by December 2017, only 82 lease holders had paid ₹8,289.87 crore, leaving ₹10,884.51 crore unpaid.
After the SC directed coercive action, the state in February 2018 asked Collectors of Sundargarh, Keonjhar, and Mayurbhanj to initiate recovery under the Odisha Public Demand Recovery Act. By January 2023, ₹7,371.12 crore (including interest) was recovered, but ₹3,966.34 crore remains pending.
The CAG criticized the Mines Department for not attaching properties of defaulters, leading to prolonged delays. The inaction has raised questions over the government’s compliance with judicial orders and efficient revenue recovery.
