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karnataka news

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BANGALORE: Karnataka Lokayukta, investigating illegal mining and corruption in the state on Wednesday estimated losses to the state exchequer from illegal extraction at 161 billion rupees ($3.6 billion).

Justice Santosh Hegde accused politicians in Karnataka, including chief minister BS Yeddyurappa, of causing the losses from 2006 to 2010 via the illicit mining of iron ore, much of which is thought to have been shipped to China.

"An amount of 16,085 crore rupees has been lost to the exchequer between 2006 and 2010 due to the illegalities and irregularities linked to the grant of licences and the export of iron ore," Hegde said in Bangalore.

"In the illegal mining and irregularities committed in the export of iron ore, we have found the involvement of some 100 mining companies, about 600 officials, powerful politicians including the chief minister."

Karnataka, which accounts for a quarter of the country's iron ore exports, banned shipments in July 2010 to curb illegal mining.

Yeddyurappa said before the report was released he would consult cabinet colleagues and legal experts once he saw its contents.

Hegde had earlier said that was "an element of criminality on the part of the chief minister as he heads the mining department and is responsible for all acts of omission and commission in it," according to reports.

According to reports, Hegde has submitted the report of over 10,000 pages in two steel trunks to the chief secretary.

Prior to submitting his report, he said that he is not sure whether government will take any action on his report.

"I do not think that government is going to take any action on the report to be submitted by me," he told mediapersons here.

Hegde said though he does not expect any action from the government, the matter holds great importance as it concerns the people of the state.

"I would not expect anything from the government, but since the Supreme Court has already expressed very strongly that it is likely to close down all the mining in Karnataka. Ultimately, it is in the larger interest of the state and the natural wealth ultimately belongs to the people," he said.

Justice Hegde further said that there is a threat to the Lokayukta staff, as the report on illegal mining goes against the ruling Bharatiya Janata Party (BJP) government in Karnataka.

"I have mentioned in the report that there is a possible threat and I have not said that there is already a threat. I have mentioned taking into consideration that the number of people whom they might have displeased, there is a possibility of these things happening and in the future it could be jeopardized. So in that context, yes, I have written in the report itself I have submitted," he said.

The BJP central leadership has made it clear that it will go through the voluminous report before taking any decision on the future of its government in Karnataka.

BJP President Nitin Gadkari on Monday said the party will decide on Yeddyurappa's future only after the report is submitted