Bengaluru, 24 March

A heated exchange took place in the Karnataka Legislative Council on Tuesday over alleged non-payment of mining dues and the “unauthorised” continuation of quarry operations by the Adani Group’s ACC Limited.

Raising the issue during Question Hour, Congress MLCK Shivakumar, speaking on behalf of his party MLC Arathi Krishna, alleged that substantial royalty dues remained unpaid even as operations continued.

Krishna wanted to know whether the State government was aware that the lease period granted to Adani Group’s ACC Ltd for mining in the Kannur Limestone Block at Wadi in Kalaburagi has expired.

“If it is true, what action has the government taken against the said company for allegedly carrying out unauthorised mining at the site without paying the total dues of Rs 850.21 crore towards royalty, rent or penalty payable to the State government?” she asked in the written question.

Krishna questioned the apparent disparity in enforcement between small quarry operators and large corporate entities. She said letter has been written to the Centre regarding renewal of the lease in favour of the company.

BJP MLC CT Ravi echoed similar concerns, questioning the legal and procedural basis for allowing participation in bidding and continuation of operations despite pending dues.

“Do your rules allow those with pending dues to participate?” he asked.

Minister N Cheluvarayaswamy, replying on behalf of the Mines and Geology Minister SS Mallikarjun, maintained that no fresh licence had been granted and that the matter involved both an existing mining lease and a separate new application still under process.

He said the company had applied through the bidding route and was given time to complete formalities, which had since been done.

“The old licence is continuing under court direction. It has not been stopped. We are following court direction,” he said, adding that part payment had been made and the balance would be decided through legal proceedings.

“The court has not said do not recover dues. Why have you not recovered?” Ravi challenged.

Shivakumar also raised concerns over declining non-tax revenue from mining, citing the State’s own budget observations.

“If Rs 800 crore to Rs 900 crore is allowed to let go like this, where will non-tax revenue comefrom?” he asked.

“How can we recover when the amount itself is not decided? Until recovery is possible, no further permission will be given,” Cheluvarayaswamy responded.