The Hindu : Karnataka News : Mismanagement has cost MML Rs. 700 crore, says House panel

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Mismanagement has cost MML Rs. 700 crore, says House panel

Staff Correspondent

Members pull up officials for causing losses to the company

Taking stock: Araga Jnanendra, Chairman of the Legislature Committee for Public Sector Undertakings (extreme right), discussing with officials of Mysore Minerals Limited at Jambunathanahalli mines in Hospet taluk on Wednesday.

HOSPET: Officials of the State-owned Mysore Minerals Limited (MML) were at a receiving end and were pulled up by the House Committee on Public Sector Undertakings, during its visit to the Jambunathanahalli mines near Hospet on Wednesday.

Members of the committee, including its chairman Araga Jnanendra, MLA, did not mince words in criticising the officials for their laxity and failure in protecting the assets of the company.

The members expressed grave concern over the flouting of norms by the officials on the one hand and the failure of the officials of other concerned departments, including Police, Revenue and Mines and Geology to extend their cooperation in protecting the assets of MML on the other, which had caused huge loss of revenue to the State exchequer.

They took exception to the officials of all concerned departments trying to put the blame on others. N. Tippanna, MLC, took exception to the sub-leases being given to extract ore and stressed that the officials working in the district should be shifted immediately.

Norms flouted

Addressing presspersons, Mr. Jnanendra said that the committee, which had been probing the performance of MML, found that Rs. 700 crore loss was caused owing to mismanagement, flouting of norms and the like while granting lease and allotment of iron ore to private parties. A detailed report had been submitted to the Speaker of the Legislative Assembly recommending action against the IAS/IPS officials, who held the post of Managing Director and also against other officials of the MML who were hand in glove with private companies and causing huge loss of revenue, he said.

Taking a dig at the senior IAS/IPS officials for either granting lease to private companies at throw away prices or turning a blind eye to the violations of the agreement, Mr. Jnanendra said that when the iron ore boom was at its peak, a Managing Director had signed an agreement without noticing a typographical error resulting in the private company (Kalyani) enjoying an extended lease by one year causing a loss of revenue to the tune of Rs. 70 crores.

He said that the committee would be submitting its second report about its findings and urge the Government to initiate legal action against the guilty officials and initiating steps to recover the amount from the companies. “We will pursue the matter and continue to pressure the Government to take action against the erring officials and companies", he said.

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