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{{Use Indian English|date=December 2019}}

The '''Belekeri port scam''' relates to 3.5 million tons of confiscated iron ore that was exported illegally from [[Belekeri port]] near [[Karwar]] in [[Karnataka]].<ref>{{cite news|url=http://www.hindu.com/2010/03/04/stories/2010030452040300.htm|archive-url=https://web.archive.org/web/20100309213910/http://www.hindu.com/2010/03/04/stories/2010030452040300.htm|url-status=dead|archive-date=2010-03-09|title=Jetties being built illegally at Belekeri Port: NGOs| location=Chennai, India|work=[[The Hindu]]|date=2010-03-04}}</ref> After Deputy Conservator of Forests [[R. Gokul]] seized the ore and the high court refused to permit it to be exported, a large part of it was surreptitiously exported from the port. After persistent protests and public pressure,<ref>{{cite web|url=http://www.indianexpress.com/news/Karnataka-govt-faces-Hegde-heat/640273|title=Karnataka govt faces Hegde heat|publisher=The Indian Express}}</ref> [[Chief Minister of Karnataka|Karnataka Chief Minister]] [[Yeddyurappa]], who was balancing [[politics of Karnataka|political considerations]] with control of corruption, admitted to an illegal iron-ore export racket at Belekeri Port involving 35 lakh metric tonnes of iron ore.<ref>{{cite web|url=http://www.indianexpress.com/news/yeddyurappa-admits-iron-ore-racket/640829/|title=Yeddyurappa admits iron ore racket|publisher=Indian Express}}</ref><ref>{{cite web|url=http://indiatoday.intoday.in/site/story/cong-backs-hegde-and-alleges-bjpmafia-nexus/1/103073.html|title=Cong 'backs' Hegde and alleges BJP-mafia nexus|publisher=India Today}}</ref> It is said that the scam was worth an estimated 60,000 crore rupees (US$12 billion).<ref>[http://www.deccanherald.com/content/79639/iron-ore-worth-rs-60000.html Iron ore worth Rs 60,000 crore looted, says Congress]</ref><ref>[http://www.indianexpress.com/news/mining-scam-in-ktaka-may-top-rs-60-000-crore-cong/642918/0 Mining scam in K'taka may top Rs 60,000 crore: Cong - Indian Express]</ref>

This iron ore from the Bellary region is alleged to have been [[illegal mine|illegally mined]] after paying a minuscule royalty to the government. The major irregularities involve mines in Bellary, including those of [[Obulapuram Mining Company]] owned by [[G. Karunakara Reddy]] and [[G. Janardhana Reddy]], who were ministers in the [[Government of Karnataka]] during [[B. S. Yeddyurappa]]'s tenure.<ref>{{cite web|url=http://www.expressindia.com/latest-news/Reddys-have-the-last-laugh-national-mines-regulator-has-both-hands-tied/592902/|title=Reddys have the last laugh, national mines regulator has both hands tied|accessdate=2010-06-24|publisher=[[Indian Express]]|url-status=dead|archiveurl=https://web.archive.org/web/20120121093722/http://www.expressindia.com/latest-news/Reddys-have-the-last-laugh-national-mines-regulator-has-both-hands-tied/592902/|archivedate=2012-01-21}}</ref> A report constituted by the Lokayukta uncovered major violations and [[systemic corruption]] in mining in Bellary, including in the allowed geography, encroachment of forest land, massive underpayment of state mining royalties relative to the market price of iron ore and systematic starvation of government mining entities. This report was finalized and prepared with inputs from the Income Tax Department's Commissionerate of Central Circle.<ref>{{cite web|url=http://www.tehelka.com/story_main44.asp?filename=Ne030410mining_lease.asp|title=Santosh Hegde Interview: ‘Mining Lease Is Used As James Bond’s Gun’|publisher=Tehelka|access-date=2010-07-01|archive-url=https://archive.today/20120911193605/http://www.tehelka.com/story_main44.asp?filename=Ne030410mining_lease.asp|archive-date=2012-09-11|url-status=dead}}</ref><ref>{{cite web|url=http://www.tehelka.com/story_main44.asp?filename=Ne030410MiningLease_fullINT.asp|archive-url=https://archive.today/20120919080810/http://www.tehelka.com/story_main44.asp?filename=Ne030410MiningLease_fullINT.asp|url-status=dead|archive-date=2012-09-19|title=Santosh Hegde Full Interview: ‘Mining Lease Is Used As James Bond’s Gun’|publisher=Tehelka}}</ref><ref>{{cite news |url=http://www.hindu.com/2009/07/14/stories/2009071461270100.htm |archive-url=https://web.archive.org/web/20090717100950/http://www.hindu.com/2009/07/14/stories/2009071461270100.htm |url-status=dead |archive-date=2009-07-17 |title=Illegal mining: Lokayukta slams Government|accessdate= 2009-09-07 |location=Chennai, India |work=[[The Hindu]] |date=2009-07-14}}</ref>

Justice [[Nitte Santosh Hegde|N. Santosh Hegde]] resigned from the [[Lokayukta]] position on 23 June 2010 after an officer (Deputy Conservator of Forests R Gokul) was suspended by order of minister [[J. Krishna Palemar]] and he felt powerless to help.<ref name=sify>{{cite web|url=http://sify.com/news/i-was-helpless-in-protecting-an-honest-officer-news-national-kgxxS2haehe.html|archive-url=https://web.archive.org/web/20100626125316/http://sify.com/news/i-was-helpless-in-protecting-an-honest-officer-news-national-kgxxS2haehe.html|url-status=dead|archive-date=2010-06-26|title=Hegde: 'I was helpless in protecting an honest officer'|publisher=SIFY}}</ref> He expressed inability to be effective in his anti-corruption mandate owing to a non-cooperative Government of Karnataka.<ref>{{cite web |url=http://www.deccanherald.com/content/77039/lokayukta-indicts-bsy-govt-quits.html| title= Lokayukta indicts BSY govt, quits |accessdate= 2010-06-24 |publisher=[[Deccan Herald]]| archiveurl= https://web.archive.org/web/20100630213907/http://www.deccanherald.com/content/77039/lokayukta-indicts-bsy-govt-quits.html| archivedate= 30 June 2010 | url-status= live}}</ref> Amid media speculation <ref name=hindu>{{cite news|url=http://www.hindu.com/2010/06/25/stories/2010062553100400.htm|archive-url=https://web.archive.org/web/20100630055159/http://www.hindu.com/2010/06/25/stories/2010062553100400.htm|url-status=dead|archive-date=2010-06-30|title=Palemar says he meant no disrespect to the Lokayukta| location=Chennai, India|work=[[The Hindu]]|date=2010-06-25}}</ref> that the ports minister [[J. Krishna Palemar|Krishna Palemar]] had recommended Gokul's suspension on behalf of some politicians with business interests, Palemar defended his recommendation to suspend Gokul, saying Gokul had failed to attend a meeting, and "this raised suspicions that he too might have had a role to play in this particular incident. Because of this I recommend that he be placed under suspension".<ref name=hindu/>

Hegde's resignation sought to underline the helplessness of the advisory post of the Lokayukta in such situations.<ref>{{cite web|url=http://www.deccanchronicle.com/bengaluru/i-had-go-save-gokul-lokayukta-493 |title=I had to go to save Gokul: Lokayukta |publisher=Deccan Chronicle |url-status=dead |archiveurl=https://web.archive.org/web/20100628121343/http://www.deccanchronicle.com/bengaluru/i-had-go-save-gokul-lokayukta-493 |archivedate=28 June 2010 }}</ref> The resignation has brought considerable public attention on the scam, whose existence the government has also been forced to admit.<ref>{{cite web|url=http://www.indianexpress.com/news/yeddyurappa-admits-iron-ore-racket/640829/|title=Yeddyurappa admits iron ore racket|publisher=The Indian Express}}</ref>

==Related road damage, accidents and loss of lives==
The lack of effective regulation in the mining and transport of iron ore has adversely impacted road safety in addition to the loss of revenue and environmental denudation due to [[illegal mining in India|illegal mining]]. Overloaded trucks carrying ore have caused hundreds of fatal accidents on the roadways leading to ports such as Belekeri. As many as 114 accidents were reported in 2007, and 174 in 2008.<ref>{{cite news|url=https://www.deccanherald.com/content/79578/ore-laden-trucks-turn-highways.html|title=Ore-laden trucks turn highways into 'accident zones'|newspaper=The Deccan Herald|date=6 July 2010 | first=Satish | last=Shile | accessdate=16 December 2019}}</ref> There are also reports of severe damage to the roads in Karnataka, including national highways [[NH-17]], [[NH-48]] and [[NH-63]], near Shimoga.<ref>{{cite news|url=http://hindu.com//thehindu/fline/fl2603/stories/20090213260304000.htm|title=Mines of scandal: The Karnataka Lokayukta’s report emphasises that illegal mining has caused severe loss to the State exchequer|publisher=The Hindu|location=Chennai, India|access-date=2010-07-06|archive-url=https://web.archive.org/web/20110720165053/http://hindu.com//thehindu/fline/fl2603/stories/20090213260304000.htm|archive-date=2011-07-20|url-status=dead}}</ref><ref>{{cite web|url=http://parisara.kar.nic.in/PDF/Mining.pdf|title=State of the environment report: Mining and Quarrying |publisher=Department of Ecology and Environment, Govt. of Karnataka}}</ref><ref>{{cite web|url=http://www.daijiworld.com/news/news_disp.asp?n_id=75281 |title=Puttur: Shiradi Ghat Woes – Concreting Proposal Languishing at Delhi|publisher=daijiworld}}</ref>

==Lokayukta report of July 2011==
This report was finalized and prepared with inputs from the Income Tax Department's Commissionerate of Central Circle. The chapter 2 of the Lokayukta Report on illegal mining in Karnataka <ref>{{cite web|url=http://www.deccanherald.com/content/179715/download-lokayukta-report-illegal-mining.html|title=Download Lokayukta report on illegal mining |publisher=Deccan Herald}}</ref><ref>{{cite web|url=http://www.deccanherald.com/images/editor_images1/2011/07/28/MINES%20PART-II.pdf|title=Lokayukta report on illegal mining (PDF) |publisher=Deccan Herald}}</ref><ref>{{cite web|url=http://www.thehindu.com/news/resources/article2302391.ece|title=Karnataka Lokayukta report on illegal mining |publisher=The Hindu}}</ref><ref>{{cite web|url=http://www.thehindu.com/multimedia/archive/00736/Report_on_the_refer_736286a.pdf|title=Karnataka Lokayukta report on illegal mining (PDF)|publisher=The Hindu}}</ref> details the method in which the Belekeri Port was the anchor point of export of illegally mined iron ore.<ref>{{cite web|url=http://www.deccanherald.com/content/179761/belekeri-port-anchor-point-irregularities.html|title=Belekeri port was anchor point for irregularities|publisher=Deccan Herald}}</ref> The report mentions the involvement of private companies – Shree Mallikarjun Shipping Pvt Ltd (SMSPL), [[Adani Group|Adani Enterprises Ltd]], [[Salgaocar Mining|Salgaonkar Mining Industries Pvt Ltd]], Dream Logistics Company India Pvt.Ltd and Raj Mahal Silks in large scale illegal exports of ore.

==See also==
*[[Indian political scandals]]
*[[Corruption Perceptions Index]]
*[[Rent seeking]]
*[[Jan Lokpal Bill]]

==References==
{{Reflist}}

{{DEFAULTSORT:Belekeri Port Scam}}
[[Category:Corruption in Karnataka]]
[[Category:Illegal mining in India]]
[[Category:History of Karnataka (1947–present)]]

Belekeri port scam - Revision history

UpdateBot at 09:09, 3 February 2022