Karnataka lost close to ₹80,000 crore owing to illegal iron ore extraction

Karnataka suffered close to ₹80,000 crore in losses in the illegal iron ore extraction scam, Law and Parliamentary Affairs Minister H.K. Patil informed the Legislative Council on Friday.

Participating in a discussion during the passage of the Karnataka Appointment of Recovery Commissioner for Seizure and Attachment of Property of illegal Mining and Proceedings of Crime Bill, 2025, he said that the quantum of iron ore extracted illegally and exported between 2005 and 2011 is estimated to be about 20 lakh crore tonnes, whose value at a cost of ₹4,003 per tonne would be ₹78,245 crore.

According to him, 111 companies indulged in illegal extraction in the State. “The Recovery Commissioner is being appointed to recover the money,” Mr. Patil said.

Cabinet decisions

Mr. Patil headed a Cabinet sub-committee on illegal extraction which recently submitted its report to the Chief Minister and its 11 recommendations were accepted by the Cabinet.

The Cabinet has decided to establish fast-track courts to try illegal extraction cases. It has also decided to review ‘B’ reports in 29 cases submitted to the courts by the SIT and withdraw ‘B’ reports in eight other cases.

It has also decided to request the Centre to return cases that were earlier referred to the CBI but not investigated even after 10 years. These cases will be handed over to SIT. It also decide to set up investigating teams on a case-by-case basis in the Forest Department to estimate losses cased by illegal extraction.