KTR demands immediate cancellation of e-auction of Suryapet mining blocks

BRS working president KT Rama Rao demanded cancellation of the Suryapet mining blocks e-auction, alleging procedural lapses, statutory violations and lack of forest clearances. He sought an independent probe and fresh notification after full compliance with environmental safeguards

Hyderabad: Citing irregularities in the e-auction of mining blocks in Suryapet district, BRS working president KT Rama Rao demanded their immediate cancellation and an independent investigation into the lapses in awarding the tenders. The e-auction involved grave procedural lapses, statutory violations and potential illegality, he said.

The auction, notified by the Department of Mines and Geology on August 30, 2024, covered the Pasupulabodu, Saidulnama and Sultanpur blocks in Suryapet district. Around 1,100 acres of the notified area reportedly fell within Reserved Forest land, raising serious environmental and legal concerns. In an open letter to Chief Minister A Revanth Reddy, Rama Rao contended that the auction documents failed to disclose mandatory particulars required under the Mineral Auction Rules, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957. These include precise latitude and longitude coordinates of boundary corners, forest compartment details, DGPS-based demarcation, UTM geo-coordinates and comprehensive geological reports estimating mineral resources.

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“These omissions strike at the foundation of transparency and legality,” he said, arguing that any deviation from the statutory framework renders the process legally vulnerable and administratively untenable.

The former Minister observed that the auction was carried forward despite pending legal proceedings. He cited directions of the Telangana High Court in a public interest litigation (WP (PIL) No. 21 of 2024), which had asked the Director of Mines and Geology to consider representations and provide an opportunity for a hearing. He stated that no meaningful compliance followed and that preferred bidders were declared and blocks handed over despite unresolved concerns.

He also flagged the reported selection of Deccan Cements Limited for the Saidulnama block and NCL Industries Limited for the Sultanpur block. Pointing out that both companies were facing pending cases related to violations and illegal mining in forest areas, he questioned the government’s due diligence in awarding such contracts. Adding to the controversy, he said the department’s legal officer declined to share the requested information about the mineral blocks, citing confidentiality and potential endangerment.

“Such conduct raises serious concerns regarding transparency and accountability,” he argued, pointing out that the auction was conducted without obtaining a mandatory No Objection Certificate (NOC) from the Forest department. Referring to the recent Supreme Court directions on forest protection, he said strict compliance with environmental safeguards was non-negotiable before permitting mining in or around forest land.

“Mining in Reserved Forest areas without adherence to statutory provisions and judicial directions undermines the rule of law and endangers fragile ecosystems,” he wrote, demanding that a fresh notification be issued only after complete demarcation, scientific surveys, full disclosure of geological data and mandatory environmental and forest clearances.