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.
In January 2018, the Central Empowered Committee (CEC), which was formed by the Supreme Court, released a report that estimated the total compensation from 131 violators to be ₹19,174.38 crore. However, according to statistics, just 82 lease holders had paid ₹8,289.87 crore by December 2017, meaning that ₹10,884.51 crore was still outstanding. In February 2018, the state requested that the Collectors of Sundargarh, Keonjhar, and Mayurbhanj begin collection under the Odisha Public Demand collection Act after the SC’s directive for coercive action. ₹7,371.12 crore (with interest) has been collected by January 2023, but ₹3,966.34 crore is still outstanding.
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.