By Our Correspondent
BHUBANESWAR: Odisha’s Steel and Mines Minister Bibhuti Bhushan Jena had made a pointed remark in the Odisha Legislative Assembly on March 25, 2025, targeting the previous BJD-led government over alleged large-scale looting and irregularities in the mining sector (particularly involving iron ore and related activities.
In his statement, the Minister had said: “Razing, Transporting, Contracting, Sab Usne Kiya; Chakra, Karan, Uddin, Sabko Lootna Sikha Diya. Sabka Mun Bandh Karke Akela Sankh Baja Diya.” (Translation: “Razing, transporting, contracting — he did everything himself; he taught Chakra, Karan, Uddin how to loot. He silenced everyone and blew the conch alone.”)
He further remarked: “Ek Aadmi Ne Sabko Ullu Bana Diya” (One man made fools of everyone).
This Uddin in question is Serajuddin & Co facing fine of Rs 8,793 Crore for shortfall in dispatch, Rs 702 Crore for Iron Ore Grade manipulation, Rs 3,966 Crore for Illegal Mining.
Fines for Shortfall in Dispatch: Serajuddin & Co., operating the Balda iron ore mine in Odisha, dispatched only 3.45 lakh tonnes of iron ore in April 2021 against a minimum dispatch requirement of 7.08 lakh tonnes under the Mine Development and Production Agreement (MDPA). No specific penalty was imposed for this shortfall, despite recommendations to recover amounts for such violations across auctioned mines in Odisha, which totaled a suggested recovery of Rs 8,793 crore for overall dispatch shortfalls leading to a 26% fall in iron ore production in FY2021.The state government did not charge any penalty for the MDPA shortfall in this case.
Fines for Iron Ore Grade Manipulation: Serajuddin & Co. has been implicated in ore grade manipulation scams in Odisha, where companies deliberately under-report the iron (Fe) content in ore to reduce royalty payments, often by 5-10% lower than actual, allowing gains of up to Rs 6,000 per tonne. This practice contributed to a total revenue loss of Rs 22,392 crore to the Odisha government as per the 2024 Comptroller and Auditor General (CAG) report.Specifically for Serajuddin, court documents note that except for fines, all other ore categories were reported at 65% Fe grade, while fines were shown at 64.5% Fe, raising suspicions of manipulation.Related to this, the company under-reported ex-mines prices for 62-65% Fe grade lumps at Rs 1,805/tonne (84% below market price of Rs 10,600/tonne) and fines at Rs 1,818/tonne (77% below Rs 8,000/tonne), leading to a revenue loss of over Rs 309 crore in April 2021 alone for the Balda mine. No specific fine amount solely for grade manipulation is detailed for Serajuddin, though similar cases (like, JSW’s Jajanga mine) resulted in a Rs 702 crore penalty notice. Investigations have highlighted violations of mineral concession rules, with calls for recovery under the MMDR Act.
Uncollected Fines for Illegal Mining: Serajuddin & Co. was among the mining companies penalized by the Supreme Court in August 2017 with a 100% penalty (equivalent to the market value of illegally extracted minerals) for operating without necessary environmental clearances (EC) or forest clearances (FC). The total penalty across Odisha was initially estimated at Rs 19,174 crore from 131 violators. For Serajuddin, this involved excess production beyond approved limits, including illegal extraction of 14.73 lakh tonnes of manganese ore from Guruda mines without de-reservation approval and excess iron ore production in various years. The Enforcement Directorate (ED) attached movable properties worth Rs 622 crore under the Prevention of Money Laundering Act (PMLA) in this case, which was confirmed by the adjudicating authority, and filed a prosecution complaint for confiscation. Additionally, the ED froze Rs 8.52 crore from bank accounts of a related company, Yazdani International Pvt Ltd.
The company initially failed to pay the full Supreme Court-ordered penalty, leading to a temporary shutdown of the Balda mine in December 2017, with only a partial payment of Rs 15 crore made at the time.However, Serajuddin later cleared the full penalty dues, including 12% interest for delays, related to excess production beyond EC limits. As of recent reports, no uncollected fines specific to Serajuddin remain outstanding for these violations, though overall uncollected penalties for illegal mining in Odisha stood at Rs 3,966 crore (including interest) as per CAG in 2025.Separately, the National Green Tribunal (NGT) imposed an additional Rs 6 crore penalty on Serajuddin for environmental damages at Balda mines, to be deposited with the Odisha State Pollution Control Board.Charge sheets have been filed for record manipulation in production and dispatch, but no further uncollected amounts are specified beyond the cleared penalties.
The perception that the Odisha government is “silent” on issues involving Serajuddin & Co. (such as shortfalls in dispatch, iron ore grade manipulation, and penalties for illegal/excess mining) stems from several ongoing criticisms, audits, and judicial observations, rather than complete inaction.
Specific to Serajuddin & Co. and Related Issues: For older penalties (for example, Supreme Court-imposed 100% compensation for excess/illegal production beyond environmental limits), Serajuddin eventually cleared its dues (including interest), allowing mine operations to resume after initial shutdowns. However, newer allegations—like grade manipulation contributing to massive revenue losses (part of the CAG’s Rs 22,392 crore statewide loss from 2015–2022 due to undervalued ore grades and misreporting)—have seen limited public follow-up or recovery actions specific to the company.
Serajuddin’s Balda mine was flagged in CAG reports for sharp increases in lower-grade reporting (like., from 12% to 73% screened fines, reducing royalty/premium payments) and under-reporting ex-mines prices, causing losses like over Rs 309 crore in a single month (April 2021). Despite calls for investigation and recovery under MMDR Act provisions, no major publicized fine or action solely for these recent manipulations has been detailed.
Broader Context of Government Inaction on Mining Violations: The Comptroller and Auditor General (CAG) has repeatedly highlighted the Odisha government’s failure to fully recover penalties for illegal mining. A key 2025 CAG report noted that the state has not recovered Rs 3,966.34 crore (including interest) from various mining leaseholders, despite a 2017 Supreme Court order mandating compensation for violations like operating without environmental clearances. This includes cases from the Shah Commission era and later audits.
The Supreme Court itself expressed serious concern in late 2025 over delays in recovering over Rs 2,700 crore in such dues, directing faster disposal of related cases in the Orissa High Court. Recoveries remain pending in districts like Keonjhar (where Serajuddin’s Balda mine operates), Sundargarh, and Mayurbhanj. The government has been criticized for not attaching properties of defaulters or taking prompt enforcement steps, leading to prolonged delays and questions about governance and enforcement.
Political angles add to the perception of silence: Some companies implicated in CAG reports (including Serajuddin-linked entities) have been electoral bond donors, raising questions about influence. Opposition parties have accused the government of shielding mine owners.
What Action Has the Government Taken? : The state has intensified crackdowns on illegal minor mineral mining (like sand), collecting significant fines—Rs 126 crore from 2022 to October 2025, with raids, vehicle seizures, and suspensions of officials involved in violations. For major minerals like iron ore, enforcement includes task forces, automated grade analysis, and labs, but critics argue these are insufficient for large-scale leaseholders.
In summary, the government isn’t entirely silent—it reports collections for minor minerals and has addressed some older penalties—but systemic delays in recovering major dues, limited action on grade manipulation scams, and CAG/Supreme Court criticisms create an impression of reluctance or inefficiency, especially for prominent operators like Serajuddin. This pattern affects multiple companies and has drawn calls for stronger accountability from auditors, courts, and opposition groups.
