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Home Jharkhand

Jharkhand DMOs Fail to Impose ₹203 Crore Penalty on Over-Extraction of Minerals

Lagatar News by Lagatar News
August 9, 2025
in Jharkhand, Lagatar News
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Lagatar24 Desk

Ranchi: District Mining Officers (DMOs) in several Jharkhand districts have been accused of favouring leaseholders who extracted minerals far beyond their approved mining plans without imposing penalties. An audit by the Comptroller and Auditor General (CAG) revealed that 21 leaseholders in Sahibganj, Pakur, and Dhanbad collectively over-extracted minerals worth ₹203.36 crore, but no fines were levied.

Audit Findings Reveal Large-Scale Over-Extraction

The CAG examined mining plans and extraction records, discovering that leaseholders mined up to twice the approved quantity. Out of the 21 cases reviewed, 20 involved stone mining in Sahibganj and Pakur, while one related to sand mining in Dhanbad. Under state rules, any extraction beyond the approved limit should attract a penalty equal to the market value of the excess minerals, but DMOs failed to enforce this provision.

District-Wise Loss to State Exchequer

In Sahibganj, eight stone leaseholders extracted 23.23 lakh cubic metres against an approved 13.96 lakh cubic metres, warranting a penalty of ₹58 crore, which was never imposed. In Pakur, 12 stone leaseholders mined 43.38 lakh cubic metres against the sanctioned 20.23 lakh cubic metres, avoiding a penalty of ₹144.91 crore. In Dhanbad, one sand leaseholder extracted 3.43 lakh cubic metres instead of the approved 3.22 lakh cubic metres, escaping a ₹45 lakh fine.

Impact on Revenue and Governance

The CAG report highlights a significant revenue loss to the state and questions the role of DMOs in ensuring compliance. It also calls for stricter monitoring, accountability, and recovery of penalties to prevent future violations.

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