Madras HC Orders CBI To Probe ₹5,800 Cr Sand Mining Scam in Chennai

The Madras High Court has ordered a Central Bureau of Investigation (CBI) probe into a suspected ₹5,832 crore illegal beach sand mining scam said to have taken place in Tamil Nadu’s coastal districts of Tirunelveli, Thoothukudi and Kanyakumari.

The court stressed that the investigation was not just about the malfeasance of officials involved in the scandal, but also any potential political links. “The political connections cannot be ruled out,” the bench said, noting the extent of economic loss to the state exchequer.

Key Directives from the Court:

It has also directed that separate Special Investigation Teams (SITs) be formed by the CBI with experienced and high-integrity officers. Teams will investigate how the illegal mining network operates and the role played by officials in charge of permitting, regulating and overseeing the sector. The inquiry will also look into how the officials issued permits and licenses for illegal mining, transport, storage and export of beach sand minerals.

In addition, the court cited irregularities in the settlement of royalties, in which arbitrary rates were said to benefit private mining companies. And the inclusion of monazite along with thorium, vital to nuclear energy without the Centre’s approval also raises national security concerns that need greater scrutiny.

Involvement in a Broader Investigation:

The court has also called out the Government of India to check the financial transactions involved in the mining companies of the respondent beyond that of the CBI. Such agencies include the Enforcement Directorate (ED), Income Tax Department, Customs and Excise Department, and Commercial Taxes Department, who have also been asked to examine the financial and commercial dealings of these firms.

In addition, the Tamil Nadu government and the Centre must initiate disciplinary proceedings against the officials found to be complicit, the bench said. The court also permitted any aggrieved party to move contempt proceedings in the event of a violation of its orders.

Due to the immense scale of the financial losses involved and the potential ramifications for governance and security, this case is anticipated to have broad implications. The CBI is now left to investigate the corruption and punish those who are guilty.