- (1.) Having heard Learned Counsel for respective parties on the Report dated 21st September, 2011, submitted by Central Empowered Committee ['CEC, for short] regarding E-auction and related issues pertaining to mining leases in Districts Bellary, Chitradurga and Tumkur, we are happy to note that the sale of iron ore through E-auction has fetched Rs 92.67 cr. from part disposal of the accumulated inventory of iron ore. We are of the view that Education, as suggested by the Monitoring Committee, should continue so that best possible price is fetched.
(2.) In the above circumstances, we accept the recommendation contained in the Report on E-auction which reads as follows: M/s NMDC may be allowed to continue mining operations in the ML Nos. 2396 and 1111 subject to the conditions that (a) the entire production of iron ore from these two mining leases will be sold only through e-auction by the Monitoring Committee and (b) the Monitoring Committee will presently disburse 80% of the sale proceeds to M/s NMDC Ltd.
(3.) We make it clear that E-auction will take place irrespective of long term contracts entered into by M/s. NMDC. We also make it clear that no Court in this Country will take up any challenge to E-auction, except this Court. (ii) The Report of CEC shows that serious illegalities have taken place in respect of mining lease No. 2434 of M/s. Associated Mining Company ("M/s. AMC" for short). The Report shows serious illegalities having taken place in respect of said mining lease by way of illegal grant of renewal of mining lease; the existing locations of the boundary pillars being completely different from the sanctioned lease sketch and quantity of iron ore shown to have been produced and dispatched from the mining lease being far in excess of the quantity that could have been physically produced and dispatched from the mining lease area. Besides illegalities having taken place in respect of the mining lease, as indicated above, other illegalities are also enumerated in the said Report (see paras 8, 9 and 10 of the Report). Such illegalities are also referred to in the Report dated 27.07.2011 of the Karnataka Lokayukta.;