Illegal Mining 2006-2011: ₹78,245 Crore Loss, H.K. Patil Sub-Committee Report

A sub-committee report chaired by Law and Parliamentary Affairs Minister H.K. Patil has revealed that illegal mining activities in Karnataka from 2006 to 2011 caused a staggering financial loss of approximately ₹78,245 crore to the state exchequer. The report was discussed and approved in a special cabinet meeting on August 19, 2025. On August 22, 2025, Chief Minister Siddaramaiah provided details about the report in the Karnataka Legislative Assembly.Key Highlights of the Report: Details of Loss: According to the Lokayukta report, 9.37 crore tonnes of iron ore were illegally extracted from 60 Category B iron ore mines, and 9.70 crore tonnes from 51 Category C mines. In total, 19.07 crore metric tonnes of iron ore were illegally exported, resulting in a loss of ₹78,245 crore.

Nature of Illegality: The Lokayukta investigation confirmed that politicians, businessmen, officials, and intermediaries were involved in plundering the state’s resources during this period.

Government Actions: To recover the losses, the cabinet has approved the draft of the Karnataka Illegal Mining and Seizure of Assets Derived from Crime Act.

A Recovery Commissioner will be appointed under this act to oversee the seizure of movable and immovable assets and manage recovery operations. TIMEX Classics Analog Watch for Men with Round Dial & Water Resistant Man's Wrist Watches

Special courts will be established for the swift trial of related cases.

The Special Investigation Team (SIT) will review 29 ‘B’ reports submitted earlier, and 8 ‘B’ reports will be withdrawn from courts.

A separate investigation team will be formed to assess the losses incurred by the Forest Department.

The state will request the Central Government to expedite the investigation of cases pending with the CBI for over 10 years or transfer them to the state’s SIT.

H.K. Patil’s Appeal:

Minister H.K. Patil recalled that in 2010, when Congress was in opposition, a 320-km padayatra from Ballari was undertaken under Siddaramaiah’s leadership to protest against illegal mining. In a letter to the CM in June 2025, Patil expressed concern that only 7.6% of the cases have been investigated and urged stringent action to punish the guilty and recover the looted wealth.
CM Siddaramaiah’s Statement on X:

On August 22, 2025, CM Siddaramaiah, addressing the Legislative Assembly, reiterated the government’s commitment to taking legal action against those involved in the illegal mining scam. He emphasized that the state will not tolerate the massive looting of its resources during 2006-2011. In the Legislative Council, H.K. Patil disclosed that 80,000 metric tonnes of iron ore were illegally exported to countries including China and Pakistan during 2006-2012, causing losses estimated at ₹80,000 crore.Statistics: Chitradurga: Category B: 37.03 lakh tonnes, Category C: 3.81 lakh tonnes

Tumakuru: Category B: 92.62 lakh tonnes, Category C: 92.34 lakh tonnes.

Ballari: Category B: 5.63 crore tonnes, Category C: 4.17 crore tonnes.

Ballari (OSC): Category B: 2.44 crore tonnes, Category C: 4.56 crore tonnes.

Total: 19.07 crore metric tonnes.

Government’s Commitment:

The government has formulated a legal framework through the Karnataka Illegal Mining and Seizure of Assets Derived from Crime Act 2025 to facilitate asset seizure and loss recovery. A team of legal experts with mining expertise has been appointed, and the government is committed to taking stringent action against the culprits.

Note:

Some reports mention losses of ₹80,000 crore or ₹1.5 lakh crore during 2006-2012. However, the H.K. Patil sub-committee, based on the Lokayukta report, has confirmed a loss of ₹78,245 crore. This discrepancy may arise from varying estimates, but the government’s official statement aligns with the ₹78,245 crore figure.