Companies including SAIL, Tata Steel and JSW Steel "illegally" extracted iron ore and manganese worth Rs 14,541 crore in Jharkhand and this amount should be recovered from them, Justice MB Shah Commission said in its report tabled in the Parliament today.



The Centre-appointed Commission of Inquiry's report said the companies were mining in as many as 40 leases in West Singhbhum, including thick Saranda forests, in violation of rules and regulations between 1994 and 2006.



It also alleged "flagrant misuse" of rules by various firms, windfall profits to them due to meagre royalty rates, diversion of forest land and granting undue favours to companies like JSW Steel. Companies like Usha Martin allegedly paid "levy" to extremists, it said.



Besides, as much as 24 per cent of Saranda forest's area was demarcated for grant of leases to companies like Rungta Mines, among others, it alleged.



"An approximate quantity of 119 million tonne (MT) iron ore for an approximate value of Rs 14,403 crore and an approximate quantity of 0.1 MT of manganese ore for an approximate value of Rs 138 crore is extracted illegally and without lawful authority," the Commission said.



The one-member panel in its report on illegal mining in Jharkhand running in four volumes recommended that "the said amount should be recovered from the lessees under Mines & Mineral Development and Regulation Act, 1957."



It said 18 leases were running under deemed extension without having environment approvals and 22 leaseholders were carrying mining in violation of norms.



The Commission has recommended termination of 24 leases across 8,898 hectares in Saranda Forest, saying 7,652 hectares fell in forest land and grant of fresh lease through public auction subsequently.



It recommended that the government should ensure that there should not be any further depletion of Saranda forest reserve as it is also notified Elephant Reserve and a proposed conservation reserve.



It said authorities allowed lessees to operate the mines without lawful authority whereas "No authority including central government and state government did have the power to condone or extend the period without proper grant of lease withing time provided under relevant rule prevailing at the time."



Officials of SAIL and JSW said they would be in a position to respond after examining the report. Tata Steel did not immediately respond to requests for comment.

The Commission has recommended that "appropriate action should be taken against the concerned authorities for misuse of the law for extending undue favour to the lessees and loss for the state."



Also, it has said that there is difference of 53.41 MT of iron ore production in the figures of IBM and state government data and the "mineral value of such difference of quantity of ore comes to about Rs 8,685 crore" which might have been sold to the nearby illegally operated crusher holders.



Saying "it is presumed that royalty for this under reporting production was not paid by the lessee", the commission stated the amount should be recovered from the lessees.



Talking about a lease of JSW Steel in West Singhbhum, the Commission said, "In the case of JSW...The entire area has been granted in one go itself, though the user agency has proposed for mining in two phases i.e. Phase I and II. Why so generosity has shown in this case".



Also, the Commission said that in Jharkhand a number of crushers are permitted to operate, that too on the border state of Odisha.



"This increases illegal mining and unlawful trading of iron ore and manganese ores" and "immediate action should be taken in this regard."