Database hacked, says Uttar Pradesh mining department, lodges FIR

LUCKNOW: Even as the restriction on mining for a better part of the previous year sent building material prices soaring, the mining department has lodged an FIR claiming that unauthorised people manipulated its database to facilitate illegal activities. While the scale of fraud is yet to be detected, it is estimated that the loss to the state's exchequer would surpass several crores.
With market prices of minerals such as 'morang' (red sand) breaking all records, the latest development is expected to further hit construction business in UP. Pointing fingers at its technology partner, the department held unidentified people accountable for identity theft, unauthorized access and impersonation, in the FIR lodged on Tuesday at STF's cyber police station in Gomtinagar, Lucknow.

Batting for complete transparency, Yogi government had framed a new mining policy in June 2017. To discourage manual fudging of permits and royalty receipts, BJP government pushed for online tendering and e-auctioning of different permits. Directorate of geology and mining department which controls mining activity in the state started issuing e-permits to the applicants. Since the policy was changed in July 2017, a lessee was not allowed to transport material from mines or river basin to his destination unless he possessed transit permit (e-MM-11).

Entries were manipulated to expand the mining area

MM-11is issued to the applicant only after he has paid the required royalty fee online to dig out minerals from specified location and area, as authorized by the department.

Earlier, during SP government, when Gayatri Prajapati was the minister, mining business remained mired in controversy as it was alleged that MM-11 were issued fraudulently and expired leases were shown as genuine ones. In fact in September 2016, Allahabad high court directed the CBI to probe whether illegal mining was carried out in UP in collusion with state authorities.

Heading the mining and minerals ministry, CM Yogi Adityanath was hopeful that the changed policy would put an end to illegal mining. The department also expected to double its revenue from Rs 1,547 crore in 2016-17 by the end of this fiscal.

However, allegedly exploiting the technology-backed process, some individuals manipulated online entries to expand the mining area allocated to lessees by up to six to seven times without asking them to deposit additional royalty fee.

Mines officer and in-charge of IT at directorate of geology and mining, Amit Kaushik found that fraudulent entries had benefited lessees in Mirzapur and Jhansi districts and decided to lodge an FIR under IT Act and IPC sections 420, 467 and 468. Further probes were on to gauge the scale of fraud.

Additional chief secretary of mines department, Raj Pratap Singh said that the matter was referred to home department last week. “I would not know if MM-11are being issued or not at the moment. Director of the department is better suited to answer specific questions on this matter,” said Singh.

Director, directorate of geology and mining, Balkar Singh was not available at Khanij Bhawan when TOI visited his office on Wednesday afternoon for his comments. His phone was also found turned off through the day.

The state government had made it clear in July 2017 through its order that the onus of cross-checking whether lessee is misusing MM-11conditions would remain on regional mining officers and monitoring would be handled by a committee of three gazetted officers at Lucknow-based directorate.

High court advocate Rohit Kant said the move of mining department was akin to a dubious corporate executive lodging FIR for misuse of his personal laptop on his counterpart posted in IT department since the counterpart knew his unique ID and password. “Here the fraud spanned for a long time before it was detected. The financial implications of the losses incurred and criminal accountability needs to be shared equally by all stakeholders as per the government order,” said Kant.