Supreme Court Issues Notice On Challenge To HC Order Quashing Proceedings Against MSPL, Directors In Belekeri Iron Ore Case
The Supreme Court on Wednesday issued notice on a challenge to the Karnataka High Court order quashing CBI proceedings against MSPL Ltd., its directors, and others in a case arising from alleged illegal procurement and export of iron ore through Belekeri Port.
A Bench of Chief Justice Surya Kant, Justices Joymalya Bagchi and V. Mohana was hearing the challenge against the High Court order that had held that the CBI proceedings were without jurisdiction since the quantity of iron ore forming the basis of the chargesheet was below the 50,000 metric-tonne threshold fixed by the Supreme Court in the illegal mining proceedings concerning Karnataka.
The court, after hearing the parties, said, “Issue notice. The Counter affidavit to be filed within 2 weeks. Post this matter on a non misceallenous day."
Appearing for the CBI, counsel submitted that the present proceedings arose from the Supreme Court's earlier directions concerning illegal mining and that the issue before the Court now was distinct from the earlier question concerning jurisdiction.
Counsel submitted that the High Court had proceeded to interfere with the CBI proceedings despite the nature of the allegations and the investigation undertaken by the agency.
The Bench, however, questioned the considerable delay between registration of the FIR and filing of the chargesheet.
“How long has it been taken?” the Bench asked.
Counsel submitted that the investigation had ultimately culminated in the chargesheet and that the allegations arising under Sections 411 and 420 IPC, among other provisions, required consideration.
The Bench also indicated that the matter appeared to have reached the stage of finality after the High Court's decision.
Appearing for MSPL Ltd., Senior Advocate Dama Seshadri Naidu opposed the plea and submitted that his client was neither involved in mining nor transportation of the iron ore in question.
“I am not the miner. I am not the transporter. At the port I purchased it.”, Naidu submitted.
Naidu argued that the allegations concerning illegal mining had no direct connection with MSPL's role, as the company had purchased the material at the port.
“When it comes to illegal mining, it has nothing to do with that one.”
He submitted that the allegations concerning creation of shell companies or fake companies also had no connection with MSPL.
Naidu explained that MSPL had purchased the iron ore from entities which had supplied it to the company and that the company itself was not responsible for the alleged illegal mining.
He further relied on the CBI's own chargesheet and submitted that the investigating agency had not directly implicated MSPL in illegal mining or transportation.
“My Lords, please see their chargesheet. They completely exonerate me.”, he pointed out.
According to Naidu, the only allegation against MSPL was that it had failed to verify the validity of the permits while dealing with the suppliers.
“They only say that I have not checked the permits. I should have been diligent while dealing with them, who are the cheats.”
Naidu submitted that this finding could not sustain the criminal proceedings against the company and its directors, particularly when the quantity ultimately covered by the chargesheet was only 39,480 metric tonnes and therefore fell below the threshold prescribed by the Supreme Court.
He also emphasised the lengthy investigation, pointing out that the FIR had been registered in 2013 but the chargesheet was filed only in February 2022.
The Supreme Court however, issued notice on the challenge to the Karnataka High Court's order quashing the CBI proceedings.