TN to transfer 1.4 cr tonnes of illegally-hoarded beach sand minerals to Indian Rare Earths Ltd

Chennai, April 15 (IANS) The Tamil Nadu government has ordered the transfer of 1.4 crore tonnes of beach sand minerals, allegedly hoarded illegally by private companies, to the PSU Indian Rare Earths Ltd (IREL).

This marks a significant step in enforcing accountability following years of controversy over illegal mining operations along the state’s southern coastline.

An official directive issued by Additional Chief Secretary of the Natural Resources Department, K. Phanindra Reddy, on April 8, 2025, outlines the process.

The transfer will encompass beach sand mineral stocks currently held across godowns, factories, stockyards, and mining sites in Tirunelveli, Thoothukudi, and Kanniyakumari districts.

The handover will proceed once tentative pricing details — including transportation and security costs — are finalised.

This action follows a Madras High Court directive that ordered the confiscation of illegally mined beach sand minerals.

The court had authorised the state to take possession of all raw, processed, or semi-processed minerals held by private players after validating the findings of multiple investigative reports, including those submitted by IAS officers Gagandeep Singh Bedi and Satyabrata Sahoo, as well as the Amicus Curiae and reassessment reports.

The Union Government had already cancelled private mining licences in 2019, in light of extensive violations and a complete ban on beach mineral mining imposed in September 2013.

According to the Satyabrata Sahoo Committee, over 1.5 crore tonnes of minerals — including garnet, ilmenite, rutile, zircon, sillimanite, and leucoxene — were found in the possession of private companies.

However, a 2023 reassessment revealed that only 1.4 crore tonnes remained, indicating that a significant portion may have been illicitly removed.

In 2017-18, as part of court-ordered investigations, 49 godowns in the three districts were sealed by the authorities to prevent further tampering or transportation of the minerals.

To oversee the transfer to IREL, the state government has formed a high-level committee comprising the Commissioner of Geology and Mining, CEO of the Tamil Nadu Infrastructure Development Board, and the Special Secretary of the Finance Department.

This committee will determine the fair value of the seized minerals.

Furthermore, the District Collectors of Tirunelveli, Thoothukudi, and Kanniyakumari have been tasked with forming multidisciplinary monitoring teams.

These teams will include officials from the Revenue, Survey, Geology and Mining Departments, the Atomic Minerals Directorate, and IREL.

The teams will supervise the secure transportation of the stock and ensure round-the-clock police protection at storage sites.

The government has also directed these district administrations to initiate proceedings to recover the assessed mineral value and royalty — amounting to Rs 5,832 crore — from the lessees responsible for illegal mining, transport, and export between 2000 and 2017.

In parallel, the Madras High Court has ordered the Central Bureau of Investigation (CBI) to constitute Special Investigation Teams comprising officers of proven integrity and technical expertise.

The teams are expected to probe the modus operandi of the illegal mining operations, the involvement of government officials, and the financial loss to the state.

The court also instructed the Union Government to review the financial and commercial transactions of the implicated companies and, if necessary, involve agencies such as the Enforcement Directorate (ED), Income Tax Department, Customs and Excise, and the Commercial Taxes Department.

Notably, on April 6, the CBI conducted raids at properties associated with V.V. Minerals and its promoter S. Vaikundarajan in Keeraikkaaranthattu near Thisaiyanvilai, as part of the ongoing investigation into the Rs 5,832 crore beach sand mining scam.

--IANS

aal/rad