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Exclusive: How Madhu Koda profited from mines
Published on Thu, Nov 12, 2009 at 11:31, Updated on Thu, Nov 12, 2009 at 16:14 in India section
Tags: Jharkhand, Madhu Koda , Chaibansha
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Chaibansha: In Jharkhand, mining is a big business and former state chief minister Madhu Koda is now infamous as the great Jharkhand robber.
Koda - once a construction worker working in a mine - rose to being chief minister of the state and is now embroiled in one of the biggest scams the country has seen in recent years, amassing wealth to the tune of Rs 4,000 crore through mines.
For those who have known Koda, a scam like this was just waiting to happen.
Senior BJP Leader Saryu Rai has been with Madhu Koda since the his nondescript RSS days.
"There's a strong lobby of mining industry here. Madhu Koda was just a puppet in their hands," says Rai.
The total volume of the illegal trade of iron ore and coal in Jharkhand is a whopping Rs 8,000 crore annually. Directly benefiting from this are more than 500 mining mafias, operating at different levels as well as the local authorities and mine officials, who benefit by simply turning their back to what is happening.
A prominent iron ore businessman, Niraj Singh says, "Those people are connected to politics and so authorities listen to them. These figures of authority are a part of the group because they get the kind of transfers they wish for."
The modus operandi of those involved in the scam is simple - identify a mine declared closed by the authorities and just start digging for coal or iron Ore, no permissions needed. All they needed to do was to grease a few palms and they could have done the digging in broad daylight. And all this despite proper guidelines set by the government under the Mines Minerals Development and Regulation Act.
Niraj Singh says, "This is happening on a large scale. SAIL mines are involved in this. There are mines in forests."
What follows next is converting this red and black dust into wealth. All across the state several sponge iron factories and crushers can be seen, most of which are owned by political heavyweights in proxy names.
What we know as iron ore and coal is called Red Gold & Black gold here in Jharkhand, the illegal trade of which has churned out thousands of neo-riches and millionaires in the last few years. Hundreds of sponge iron factories have sprung up all across Jharkhand which crush illegally mined ores into unimaginable wealth.
Insiders say the recent scam involving Madhu Koda and his team and the unaccounted for money found in their possession was generated from the illegal trading of this red and black gold. They also say that has surfaced so far is just the tip of the ice-berg.
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At present there are many Kodas living in our country.they are looting their country instead their intention to progress the
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Mining happens to be minting money business!Madhu Koda found a correct source to have a wrong income!.
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My country my people.
Can't write more.
My heart bleeds.
Tears run.
Poor people of Jharkand
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This nation is going to dogs! Corruption at every level. BUT our whole society is corrupt, on verge of moral/ethical/etc
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No wonder India is poor, lending money from world Bank. 8000 Crores man.
I believe every state has many
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