Karnataka High Court
R By Range Forest Officer Ankola Forest ... vs Port Conservator Belekeri Port on 2 June, 2025
1 CRL.P NO.100029/2023
C/W WP.NO.105060/2024
IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH
DATED THIS THE 02ND DAY OF JUNE, 2025
BEFORE
THE HON'BLE MS.JUSTICE J.M.KHAZI
CRIMINAL PETITION No.100029 OF 2023
C/W
WRIT PETITION No.105060 OF 2024
IN CRL.P.No.100029 OF 2023
BETWEEN:
THE STATE OF KARNATAKA
REPRESENTED BY RANGE FOREST OFFICER
ANKOLA FOREST POLICE STATION
DISTRICT UTTAR KANNADA
THROUGH THE ADDITIONAL
STATE PUBLIC PROSECUTOR
ADVOCATE GENERAL OFFICE
HIGH COURT OF KARNATAKA
DHARWAD BENCH - 580 001
...PETITIONER
Digitally signed by
(BY SRI. JAGADEESH B.N., ADDITIONAL SPP AND
CHANDRASHEKAR SRI. PRAVEENA Y. DEVAREDDIYAVARA, HCGP)
LAXMAN
KATTIMANI
Location: HIGH AND:
COURT OF
KARNATAKA
1. PORT CONSERVATOR
BELEKERI PORT - 581 321
2. CID CARITION HOUSE
BENGALURU - 560 001
3. CID ACB
GANGANAGAR
BENGALURU - 560 032
2 CRL.P NO.100029/2023
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4. RAJAMAHAL SILKS A PARTNERSHIP
48/1 SANJEEVAPPA LANE
AVENUE CROSS
BENGALURU
BENGALURU - 560 002
5. GIMPEX PVT LTD
A COMPANY REGISTERED OFFICE AT
NO.282, LINGI CHETTY STREET
CHENNAI - 600 001
6. P K POUNRAL
S/O KUPPASWAMY DEVAR
AGE 56 YEARS
PROPRIETOR M/S SATYA GRANITES
NO.69, ABHIMAN BYPAS ROAD
DHARMAPURI
TAMILNADU - 636 701
7. M/S DODDANNAVAR BROTHERS
REGISTERED PARTNERSHIP FIRM
DODDANNAVAR COMPOUND
NEAR FORT
BELGAUM - 590 016
8. VENKATESHWAR TRANSPORT
SVT COMPLEX
OPPOSITE UNION BANK
BALLARY ROAD
HOSPET - 583 201
9. VEDANTA LTD
FORMERLY KNOWN AS
SESA STERLITE LIMITED
SESA GOA LIMITED
REGD OFFICE AT
1ST FLOOR C WING
UNIT 103 CORPORATE
AVENUE ROAD ATUL PROJECT
CHAKALA
3 CRL.P NO.100029/2023
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ANDHERI BUMBAI - 400 093
MAHARASHTRA
...RESPONDENTS
(BY SMT. VIDYAVATHI M. KOTTURSHETTAR, ADVOCATE FOR R-1;
SRI. NEELENDRA GUNDE, ADVOCATE FOR R-2 AND R-3;
SRI. NANDISH PATIL AND
SRI. RAMACHNADRA V. BHAT, ADVOCATE FOR R-4 AND R-5;
SRI. VAISHALI HEGDE, ADVOCATE FOR R-6 AND R-9;
SMT. LATA PRASAD & YESH R. NADKARNI, ADVOCATE FOR R-7;
R-8 SERVED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C. SEEKING TO SET ASIDE THE ORDER PASSED BY THE 2ND
ADDITIONAL DISTRICT AND SESSIONS JUDGE UTTARA KANNADA
IN CRIMINAL REVISION PETITION NO.2/2021 DATED 20.11.2021
AND CONSEQUENTIALLY THE ORDER DATED 05.10.2020 IN
ANKOLA FOREST IN CRIME NO.17/2009-10 ON THE FILE OF
SENIOR CIVIL JUDGE AND JMFC, ANKOLA AND PASS ANY OTHER
ORDER AND RELIEF, THAT THIS HON'BLE COURT DEEMS FIT
UNDER THE CIRCUMSTANCES OF THE CASE, IN THE INTEREST OF
JUSTICE AND EQUITY.
IN WRIT PETITION NO.105060 OF 2024
BETWEEN:
M/S. DODDANAVAR BROTHERS
(REG PARTNERSHIP FIRM)
DODDANAVAR COMPOUND,
NEAR FORT, BELGAUM-590016
REP BY ITS GPA HOLDER
SRI SANDEEP SADANANDA CHANDAGADKAR
...PETITIONER
(BY SRI. PRAMOD KATHAVI, SENIOR COUNSEL FOR
SMT. LATA PRASAD AND
SRI. YASH RAJENDRA NADEKARNI R., ADVOCATES)
4 CRL.P NO.100029/2023
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AND:
RANGE FOREST OFFICER, ANKOLA
ANKOLA
KARWAR DISTRICT-581301
(BY SRI. JAGADEESHA B.N., ADDITIONAL SPP AND
SRI. PRAVEEN Y. DEVAREDDIYAVARA, HCGP FOR R-1
SRI. NEELENDRA GUNDE, ADVOCATE FOR R-2
SMT. VIDYAVATHI M. KOTTURSHETTAR, ADVOCATE FOR R-3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA READ WITH SECTION 482
OF CR.P.C. (SECTION 528 OF BNSS ACT) PRAYING TO I) ISSUE A
WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT
SETTING ASIDE/ QUASHING THE ORDER DATED 23-09-2023 AT
ANNEXURE-D PASSED BY SENIOR CIVIL JUDGE AND JMFC,
ANKOLA REJECTING THE INTERIM APPLICATION I.A.NO.12 FILED
BY PETITIONER UNDER SECTION 452 AND SECTION 457 OF
CR.P.C. IN FOC. CASE NO.17/2009-10, AND II) ISSUE A WRIT OF
MANDAMUS DIRECTING THE CONCERNED AUTHORITIES TO
RELEASE 48, 917.48 MTs (METRIC TONS) OF IRON-ORE IN STACK
NOS.M.C. 9 AND M.C. 11 AT BELEKERI PORT TO THE PETITIONER
AND PERMIT THE TRANSPORT OF THE RELEASED IRON-ORE
(ROYALTY ALREADY PAID), AND /OR ISSUE SUCH OTHER
APPROPRIATE ORDERS DIRECTIONS AS DEEMED FIT BY THIS
HON'BLE COURT UNDER THE FACTS AND CIRCUMSTANCES OF
THE ABOVE CASE, IN THE INTEREST OF JUSTICE AND EQUITY.
THESE PETITIONS HAVING BEEN HEARD AND RESERVED
ON 19.12.2024, COMING ON FOR PRONOUNCEMENT OF
JUDGMENT THIS DAY, THE COURT DELIVERED THE FOLLOWING:
5 CRL.P NO.100029/2023
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CORAM: THE HON'BLE MS. JUSTICE J.M.KHAZI
CAV COMMON ORDER
(PER: THE HON'BLE MS. JUSTICE J.M.KHAZI)
Crl.P.No.100029/2023 is filed by the State challenging
the order dated 05.10.2020, passed by JMFC Ankola,
rejecting the application filed by the State for interim
release/disposal of the seized iron ore in Ankola PS
Cr.No.17/2009-10.
2. In W.P.No.105060/2024, petitioner who is
applicant No.4 before the trial Court, has challenged the
order dated 23.09.2023 passed by the same court rejecting
the application filed by it and others under Section 451 r/w
457 Cr.P.C, seeking release of 48,917.48 metric tonnes of
iron ore in stack Nos.M.C-9 and M.C-11 in the same crime
number.
3. Though these two petitions are arising out of two
different orders, they relates to the same subject matter.
While the State is seeking interim relief in respect of the
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entire stock of iron ore seized at Belekeri port premises, writ
petitioner is seeking the said relief in respect of stack
Nos.M.C-9 and M.C-11, totally measuring 48,917.48 metric
tonnes. Therefore, these two petitions involve common
issues and common discussion and as such they are clubbed
together and disposed of by a common order.
4. For the sake of convenience petitioner in
Crl.P.No.100029/2013 is referred to as State and petitioner
in W.P.No.105060/2024 is referred to as writ petitioner.
5. Brief facts leading to the filing of these two
petitions are that on 15.03.2010, a complaint came to be
registered in Cr.No.17/2009-10 (FOC.139/2009-10) by the
Ankola P.S, for the offences punishable under Section
2(7)(b)(iv), 62, 24, 80 of the Karnataka Forest Act, 1963 and
Rule 143 and 162 of the Karnataka Forest Rules, 1969,
against the conservator of Belekeri Port, for illegal stock of
iron ore in huge quantity, which could not be ascertained at
that time and the FIR was transmitted to the JMFC, Ankola.
7 CRL.P NO.100029/2023
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5.1 On 20.03.2010, approximately 5 lakhs Metric
tones (for short 'MT') of iron ore, then worth Rs.150 Crores
was seized, on as-is where-is basis at Belekeri Port, which
was illegally transported from Ballari, Chitradurga and other
areas and stored in the port area. It was handed over to the
port conservator, Belekeri and PF was submitted to the JMFC
Ankola, which permitted it to retain the same until further
orders.
5.2 The JMFC Ankola rejected applications filed under
Section 451 Cr.P.C seeking interim custody on the following
ground that they have failed to produce the ownership
documents.
"1. Greentex Mining Industries Limited Bangalore on
7-4-2010 as not pressed.
2. M/s Doddannawar Brothers, Belagavi &
3. ILC Industries Limited, Hospet on 12-4-2010
4. P.K.Pounraj on 12-8-2011."
4.3 Though the application filed by Sri Venkateswara
transport was allowed, it could not be released as the same
failed to produce the valid documents.
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5.4 However, during the investigation as evident from
the stock statements furnished by the four licensed
stevedores, it was found from the port conservator that the
actual iron ore seized on 20.03.2010 was 8,05,991.083 MTs,
belonging to various exporters/parties. However, prior to
02.06.2010, most of the seized iron ore has been exported
out of port area. On 02.06.2010, the investigating officer
found majority quantity of seized iron ore missing and hardly
approximately 2.00 lakh MTs of iron ore was visibly found in
the port area and remaining quantity of approximately 6.00
lakhs MTs of seized iron ore has been stolen away/exported
from the port area. This was brought to the notice of the
JMFC Ankola, who was pleased to issue order dated
05.06.2010 to file FIR with the jurisdictional police.
5.5 Accordingly, the investigating officer/ACF lodged
complaint in Cr.No.189/2010 of Ankola PS for the offence
punishable under Section 406 IPC against the following 12
persons/entities.
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"1. Sri.Mahesh Biley, Port Conservator, Belekeri Port.
2. M/s Shree Mallikarjun Shipping Pvt. Ltd.
3. M/s Adani Enterprises Limited.
4. M/s Salgaocar Mining Industries Pvt. Ltd.
5. M/s ILC Industries Limited.
6. M/s AshapuraMinechem Limited.
7. M/s PJS Overseas Limited.
8. M/s Doddanavar Brothers.
9. M/s Shir.Lal Mahal Limited.
10. M/s Swastik Steel (Hospet) Pvt Ltd.
11. M/s Lakshmi Venkateshwara Minerals.
12. M/s Metachem Manufacturing Company Pvt Ltd."
5.6 The learned JMFC Ankola rejected the applications
filed by various exporters under Section 451 and 457 Cr.P.C
seeking interim custody of the various quantities of the iron
ore and WP.Nos 14551/2010, 14552/2010, 1574/2010,
15743/2010, 15744/2010, 15745-46/2010, 15756/2010 and
16055/2010 filed against the said order came to be
dismissed by this Court, also upholding the locus standi of
the forest officials to seize the iron ore by various exporters.
5.7 During investigation, approximately an extent of
28811.5 cubic metric of illegally stocked iron ore worth
approximately Rs.24 Crores, which was stocked in the port
area was seized through mahazar dated 08.02.2011 in as-is
10 CRL.P NO.100029/2023
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where-is basis. It was handed over to the custody of RFO,
Ankola and reported to the jurisdiction Magistrate and it was
permitted to be retained until further orders.
5.8 In the meanwhile, as per the orders of this Court
and GO.No.OE 91 CID, Bengaluru dated 28.09.2011, the
investigation of Cr.No.189/2010 was handed over to CID.
However, in WP(Civil)No.562/2009, based on the report of
the Central Empowerment Committee, the Hon'ble Supreme
Court ordered registering of FIR and investigate the illegal
export of 50.79 MTs of iron ore from the forest area of
Karnataka from 01.01.2009 to 31.05.2010 and illegal
transport to Belekeri port and from there illegal export of the
same, by the CBI and stayed the further proceedings in
Cr.No.189/2010 and directed the CID Karnataka to handover
all the records to the CBI. On 16.09.2013, the Hon'ble
Supreme Court further ordered and permitted CBI to register
criminal cases against those exporters who are enquired into
in the preliminary enquiry and who had exported iron ore of
11 CRL.P NO.100029/2023
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more than 50,000 MTs without valid permit and as
recommended by the Central Empowered Committee in its
report dated 05.09.2012.
5.9 However, in the meanwhile CID had filed 39
charge sheets before JMFC Ankola.
5.10 In some cases, this Court as well as the Hon'ble
Supreme Court directed the parties to approach the
jurisdictional criminal Courts to claim properties on 'existence
and ownership basis'. Accordingly, some of the parties
approached CBI Court, Bengaluru, but their claim petitions
were rejected for want of jurisdiction.
5.11 In W.P.No.26558/2016, the writ petitioner
succeeded. However, Contempt Petition No.1618/2017,
arising out of the said petition came to be dismissed and
Review Petition No.376/2017 filed by the State was allowed
and thereby all the connected petitions were restored.
W.P.No.18941/2016 filed by M/s. Vedanta Ltd came to be
allowed by Division Bench of this Court, directing release of
12 CRL.P NO.100029/2023
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iron ore. However the Supreme Court in Crl.A.Nos.348-
356/2018 set aside the said order and directed the parties to
approach jurisdictional CBI Court. Similarly, the other writ
petitions came to be dismissed by this Court with a direction
to the parties to approach the jurisdictional Criminal Court.
After detailed investigation, CBI filed charge sheet against
the accused persons before the CBI Court. Out of them,
some of the cases were transferred to peoples
representatives Court for MLAs and MPs.
6. Before the trial Court, the State filed application
under Section 451 r/w 457 C.P.C seeking interim release of
the available iron ore with a permission to conduct e-auction
and to deposit the amount with the trial Court urging the
following reasons:
a. The Belekeri port is a minor port under
Government of Karnataka. Department of PWD is
interested to open the Belekeri Port for commercial
operation and they are keen to develop this port for
economic purpose from the point of State revenue. The
shipping activities are obstructed because of dumping of
13 CRL.P NO.100029/2023
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Iron ore causing revenue loss of about Rs.15-20 Crores
per annum.
b. Significant amount is being spent on protection of
the iron ore heaps by way of covering with Tarpoulin
every year. Huge expenditure incurred for protection of
iron ore heaps at Belekeri port, which is under the
custody of Forest Department by covering tarpaulin.
From 2012-13 to 2018-19, already a sum of
Rs.40,68,911 is spent for protection of the iron ore.
C. Since nine years the huge stock of iron ore is
exposed to weathering wind and heavy rain. There is
possibility of erosion, which may lead to loss of the
material. The quality of the Iron ore is diminishing. The
present market value has also gone down considerably.
d. There are also issues of ground rent where the
seize material is stored, which need to be resolved
between the Port Department and Forest Department.
e. It is the duty of Karnataka Government to clear the
vast area where the Iron ore is stocked since several
years, to maintain pollution free environment in the Port
as well as its surrounding areas by removing it.
F. Even though the seized iron ore is forest produce
belonging to the Government, in case any party is
interested in claiming the same, the Hon'ble Court may
consider it by giving opportunity to the State
14 CRL.P NO.100029/2023
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Government and pass final order. As per the order of
Hon'ble Supreme Court, the parties are required to claim
the property on 'existence and ownership basis'. Hence,
the petition for granting permission to the State
Government to release through E-auction under the
supervision of Monitoring Committee constituted by the
Hon'ble Supreme Court and to deposit the amount in the
account of the Hon'ble Court, which may be directed to
be kept in Fixed Deposit to fetch interest, till passing of
the final order.
6.1 The State Government undertakes to follow the
following procedure, in order to make the entire proceedings
transparent.
1. The auction of property would be conducted
through e-tender only after measurement of the quality
and quantity of each of the 56 iron ore heaps separately
through Mines and Geology Department.
2. The e-auction would be conducted after taking
samples of each of the 56 iron ore heaps separately, for
which Panchnama would be drawn.
3. After the e-auction process is over the disposal of
the iron ore be covered by videography.
15 CRL.P NO.100029/2023
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4. The auction amount would be deposited
immediately with the Court in Cr.No.FIR.17/2009-10
5. The DGM would keep records of the exact quantity
of iron ore transported by the successful bidder of the
property.
7. Respondents filed objections to the petition filed by
the State Government.
8. Vide order dated 05.10.2020, the trial Court
rejected the application filed by the State.
9. Aggrieved by the same, the State approached the
Sessions Court in Crl.R.P.No.2/2021. Vide order dated
20.11.2021, the Sessions Court also refused to grant interim
custody of the seized iron ore for disposal in accordance with
law.
10. Aggrieved by the same, the State has come up
with the present petition contending that orders passed by
the trial Court as well as the Sessions Court are contrary to
the law, facts and documents on record and as such not
sustainable. They are erroneous, illegal and arbitrary. The
16 CRL.P NO.100029/2023
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Courts below have failed to understand the proposition laid
and observations made by the Hon'ble High Court as well as
the Supreme Court and also the fact that some of the
claimants have given no objections for conducting e-auction
by the State. They have also failed to appreciate the fact that
despite of notice majority of the parties have not shown any
interest making a claim. The Courts below have failed to
appreciate the fact that the best option available is to e-
auction the seized iron ore under the supervision of
Monitoring Committee constituted by the Hon'ble Supreme
Court and it would protect the interest of all the parties. The
Courts below have failed to assign proper reasons for
rejecting the request of the State.
11. Similar applications were filed by Gimpex Ltd,
M/s Sesa Goa Ltd, M/s Rajmahal Silks and M/s Doddannavar
brothers, who are the petitioners seeking interim custody of
the seized iron ore said to be belonging to them.
17 CRL.P NO.100029/2023
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12. Writ Petitioner filed application under Section
452 and 457 Cr.P.C with a prayer to release the iron ore at
MC-9 and MC-11 to its custody for shipment to any
destination of purchaser without insisting on any further
payment of royalty, as already royalty is paid.
13. In support of the application, the writ petitioner
has contended that it is having a valid permit for mining and
transport permit for transporting the iron ore. As on
20.03.2010 when the Mahazar was drawn 48,917.48 MTs of
iron ore belonging to the petitioner was lying at Belekeri Port
in the plots belonging to Sri Mallikarjuna shipping Pvt Ltd. It
was also seized. As per the direction of the Hon'ble Supreme
Court, when several cases were registered against many of
the Exporters, Cr.No.RC.(E)7/2013 was registered against
the writ petitioner and its Directors on 03.02.2014.
13.1 During the investigation, the CBI has addressed
a letter dated 09.05.2014 to the Port Conservator, Karwar
Port, requesting the officers to allow the representatives of
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writ petitioner to enter the port area with the required men
and material and undertake the preservation activity by
covering the iron ore belonging to them and create bunding.
Accordingly, the Port Conservator of Belekeri Port addressed
a letter dated 22.05.2014 to the writ petitioner, permitting it
to cover the iron ore belonging to it with tarpaulin and create
bunding around the covered iron ore stacks belonging to it,
which was later marked as MC-9 and MC-11.
13.2 After detailed investigation, the CBI has filed
Final Report under Section 173 of Cr.P.C in
Cr.No.RC.7(E)/2013, CBI/EOW/CHENNAI, stating that no
offences are committed by the writ petitioner and its
Directors. The special CBI Court vide order dated
27.05.2017, accepted the Final Report. Consequently, the
writ petitioner is the owner of 48,917.48 MTs of iron ore
marked as MC-9 and MC-11. They have already submitted
the ownership documents and hence the petition for release
of the same.
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14. The trial Court vide order dated 23.09.2023
rejected all the applications filed by the 4 claimants.
15. Aggrieved by the same, the writ petitioner has
filed the petition contending that the impugned order is
illegal, arbitrary and against the principles of natural justice.
The trial Court has failed to appreciate the fact that CBI has
filed Final Report stating that no offences are made out
against the writ petitioner and its Directors who are accused
in the said case and criminal case was registered against
them by mistake of fact. The Final Report also state that
there are documents to establish that the iron ore stacks
bearing Nos. MC-9 and MC-11 belong to the writ petitioner
and they have already paid the necessary royalty. The trial
Court has also failed to note that writ petitioner has been
unnecessarily victimized and in addition to suffering huge
loss, it has also suffered its good reputation in the business
circle. The release of iron ore belonging to the petitioner
would not come in the way of proceeding against the other
accused as there is no rival claim with regard to it. Hence, it
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is a fit case for interference by this Court, and hence the
petition.
16. Heard arguments of both sides and perused the
record.
17. The undisputed facts are that on 15.03.2010, a
complaint came to be registered in Cr.No.17/2009-10
(FOC.139/2009-10) against the conservator of Belekeri Port
for illegal stock of huge quantity of iron ore which could not
be accounted for. Consequent upon the registering of said
case on 20.03.2010, approximately 5 lakhs metric tones of
iron ore was seized on as-is where-is basis. However, from
the stock statements furnished by the 4 licensed stevedores
it was found that the actual weighment of the seized iron ore
is 8,05,991.083 MTs belonging to various exporters/parties
prior to 02.06.2010. On 02.06.2010, the investigating officer
found majority quantity of iron ore missing and hardly
approximate 2 lakhs MT of iron ore was visibly found. After
this was brought to the notice of JMFC., Ankola, as per order
21 CRL.P NO.100029/2023
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dated 05.06.2010 of the said Court, FIR was registered in
Cr.No.189/2010 of Ankola P.S. for the offence punishable
under Section 406 IPC.
18. Initially on the orders of this Court, the
investigation was transferred to CID and subsequently, based
on the report of the Central Empowered Committee and on
the directions of the Hon'ble Supreme Court, investigation
was handed over to the CBI. However, before investigation
would be taken over by the CBI, CID had filed 39 charge
sheets against the erring parties before the JMFC., Ankola.
19. During the investigation, the CBI has allowed
the representative of writ petitioner to enter the port area
with men and material and undertake preservation activity
by covering the iron ore belonging to them and create
bunding. Accordingly, vide letter dated 22.05.2014, the
conservator of Belekeri Port permitted the writ petitioner to
cover the iron ore belonging to it with tarpaulin and create
bunding around the covered iron ore stacks which was later
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marked as MC-9 and MC-11. After detailed investigation in
case of writ petitioner final report was filed stating that it was
holding mining lease ML.2394 and ML.2395. During October
2009 till May 2010 the firm has obtained MDPs and Forest
OMs for 3,75,326 MTs of iron ore from DMG, Bagalkot and
DCF, Bagalkot and paid royalty for quantity of iron ore
transported in excess to the tune of 67,970 MTs
consolidately to DMG, Bagalkot and DCF, Bagalkot.
Therefore, the total quantity moved with permits is 443296
MTs (375326 + 67970). The firm purchased 17926.48 MTs of
iron ore from HG Range Gowda, Hospet under two valid
MDPs. At the end of the season, the firm purchased 6240
MTs of iron ore from Metachem Manufacturing company
inside the Belekeri Port as detailed in the charge sheet. Thus,
the firm had in total 467463.48 MTs (443296 + 17926.48 +
6240) of iron ore at Belekeri.
20. It is further stated in the charge sheet that the
investigation revealed that the firm had a stock of iron ore
with valid permits to the tune of 461222.48 MTs (443296 +
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17926.48) and between October 2009 to May 2010, the firm
has exported 418546 MTs of iron ore to China from Belekeri
Port. In view of the above, it is found, the firm had balance
stock of 42677.48 MTs (461222.48 - 418546) after the last
shipment of 9194 MTs described in the charge sheet. After
the arrival of stock of Metachem, the balance iron ore was
around 48917.48 MTs (42677.48 + 6240). The iron ore
procured along with other remaining stock of iron ore is lying
in the port of Belekeri after ban of export of iron ore.
21. It is further stated in the charge sheet that the
investigation reveal that the allegations that the writ
petitioner represented by its partner exported 48854 MTs of
iron ore during 2008-09 and 6240 MTs of iron ore during
2009-10 totaling to 55094 MTs without MDP and OM are not
made out. The investigation also reveal that the involvement
of public servant were not made out and it is a case of
mistake of fact and accordingly, final report is filed.
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22. It is pertinent to note that similar final reports
were filed in respect of M/s Satya Granites Represented by
Proprietor P.K. Pounraj, Vedanta Limited, M/s Rajamahal
Silks and M/s Gimpex Limited. Their applications for release
of the iron ore belonging to them was rejected by the trial
Court and the criminal petitions in Crl.Nos.7582/2018 and
7827/2018 and W.P.Nos.107057 and 107387/2023
respectively filed by them came to be allowed by this Court
ordering for release of the iron ore to their custody.
23. Similarly, now Writ petitioner is seeking release
of 48917.48 MTs of iron ore in stack Nos.MC-9 and MC-11 at
Belekeri Port to its custody and grant permission to transfer
or export the same. On the other hand the State is seeking
permission to release the available seized iron ore as
reported on 20.03.2010 and 09.02.2011 and to conduct e-
auction by the Karnataka Government through e-tender
under the supervision of Monitoring Committee constituted
by Hon'ble Supreme Court.
25 CRL.P NO.100029/2023
C/W WP.NO.105060/2024
24. Even though as per the request of M/s Satya
Granites Represented by Proprietor P.K. Pounraj, Vedanta
Limited, M/s Rajamahal Silks and M/s Gimpex Limited, the
iron ore belonging to them were ordered to be released to
their custody and as directed by the Hon'ble Supreme Court
that the claimants are at liberty to file appropriate
applications before the trial Court for release of seized iron
ore by establishing its existence and its ownership over the
same, it appears majority of them are not able to establish
their existence and their ownership and consequently, still
large quantity of seized iron ore is available. As rightly
contended by the State in their application for release of the
same, unnecessary expenses is incurred by the State for
protection of iron ore heap. Since 9 years, the huge stock of
iron ore is exposed to weathering wind and heavy rain
leading to erosion and the quality of iron ore is also
diminishing resulting the market value going down
considerably. The ground rent issues are also involved. It is
also coming in the way of the State maintaining pollusion
26 CRL.P NO.100029/2023
C/W WP.NO.105060/2024
free environment in the port as well as in the surrounding
areas.
25. Since Belekeri port is a minor port the huge stock
of iron ore is coming in the way of developing it for
commercial operation. The shipping activities are also
obstructed because of dumping of iron ore causing heavy
revenue loss. In the above facts and circumstances it is in
the interest of all parties concerned to dispose off the same
through e-auction under the supervision of Central
Monitoring Committee constituted by the Hon'ble Supreme
Court and if the proceeds are deposited with the Court to be
kept in Fixed Deposit, the party who is having a stake may
claim the proportionate amount after establishing its
existence and ownership.
26. So far as the iron ore at stack No.MC-9 and MC-
11 are concerned, writ petitioner is entitled for custody of the
same.
27 CRL.P NO.100029/2023
C/W WP.NO.105060/2024
27. In the result the petitions deserves to be allowed
and accordingly, the following:
ORDER
I. W.P.No.105060/2024 is allowed.
(i) The impugned order dated 23.09.2023 in Ankola
Forest Crime No.17/2009-10 (FOC No.189/2009-
10), on the file of Senior Civil Judge and JMFC.,
Ankola rejecting I.A.No.12 filed under Section
451 r/w 457 of Cr.P.C is set aside.
(ii) The iron ore in stack No.MC-9 and MC-11 at
Belekeri port, Karwar District in Ankola Forest
Crime No.17/2009-10 and (FOC.No.189/2009-
10) is ordered to be released to the custody of
writ petitioner with the following conditions:
a) The Assistant Conservator of Forest, Ankola,
Uttara Kannada District shall determine the
actual quantity of iron ore available which was
stacked by the petitioners and also determine
the value of the iron ore and upon
determination, the Range Forest Officer shall
release the said quantity of iron ore to the writ
petitioner with one surety each and on
executing of indemnity bond by the with
petitioner for the value determined.
b) Photographs and videographs of the same shall
be taken for using the same as evidence at the
trial.
c) The said exercise shall be concluded within 8
weeks from the date of receipt of certified copy
of this order.
II. Crl.P.No.100029/2013 filed by the State under Section
482 of Cr.P.C is allowed in part.
(i) The impugned order dated 05.10.2020 in Ankola
Forest Cr.No.17/2009-10 (FOC No.139/2009-10)
on the file of Senior Civil Judge and JMFC.,
Ankola and order dated 20.11.2021 in
Crl.RP.No.2/2021 on the file of II Addl.District
and Sessions Judge, U.K.Karwar are set aside.
(ii) Consequently, the application filed under Section
451 and 457 Cr.P.C by the State is allowed in
part.
(iii) The available iron ore as reported on
20.03.2010 and 09.10.2011, minus stack
No.MC-9 and MC-11, is ordered to be released to
the custody of State Government with a direction
to conduct e-auction through e-tender under the
supervision of Central Monitoring Committee
constituted by the Hon'ble Supreme Court and to
deposit the sale proceeds into the account of the
trial Court till passing of the final order with the
following conditions:
1) The auction of the property shall be conducted
through e-tender only after measurement of
the quality and quantity of each of the 56 iron
ore heaps separately through the Mines and
Geology Department minus stack No.MC-9 and
MC-11.
2) The e-auction should be conducted after taking
samples of each of the iron ore heaps
separately for which panchanama shall be
drawn.
3) After e-auction process is over the disposal of
iron ore shall be covered by videography.
4) The auction amount shall be deposited
immediately with the Court in
Cr.No.FIR.17/2009-10. The trial Court shall
keep the said amount in Fixed Deposit in any
Nationalized Bank
5) The DGM shall keep the record of exact
quantity of iron ore transported by the
successful bidder of the property.
6) The entire exercise shall be conducted as early
as possible without wasting time.
(iv) The Registry is directed to send a copy of this
order to the trial Court forthwith.
Sd/-
(J.M.KHAZI)
JUDGE
RR
