CAG flags ₹408.68 crore unrecovered revenue from illegal mining in Uttar Pradesh

Illegal excavation of minerals across 268.91 hectares in 11 districts of Uttar Pradesh between 2017 and 2022 has led to a pending revenue recovery of ₹408.68 crore, according to a Comptroller and Auditor General (CAG) report tabled in the state assembly on Tuesday.

Parliamentary affairs minister Suresh Khanna presented the report on “Mining in Uttar Pradesh and Socio-Economic Impact of Illegal Mining.”

The audit found that 45 lessees extracted 26.89 lakh cubic metres of minerals outside their allotted lease areas, but recovery proceedings were delayed due to inadequate monitoring. In three districts, five cases of mining were reported on 30.40 hectares of land without leases.


The report highlighted widespread violations:

• Around 613 stone crushers operated without mandatory storage licences, with no action from district mines officers.
  
  
• “The Meja Thermal Power Project allegedly extracted 53,88,930 cubic metres of ballast and boulders without a mining lease or permit. Of the ₹322.62 crore sought as royalty by the Prayagraj district administration, only ₹81.77 lakh was deposited, leaving ₹321.81 crore outstanding,” the CAG said.
  
  
• The mining surveillance system developed by the Union Ministry of Mines to track illegal activity was not used by the state’s geology and mining department.
  

CAG’s review of e-MM-11 forms revealed that lessees issued passes with different vehicle capacities for day and night transport, and recorded quantities above permissible limits, pointing to weak software controls.

The report also flagged regulatory lapses. Brick kilns were set up without adhering to distance norms from habitations, schools, eco-sensitive zones, and monuments. Four mining leases were granted near bridges despite guidelines prohibiting such activity.

Financial shortfalls were noted too. Stamp duty worth ₹20.96 crore was under-levied on 173 mining lease deeds. Mine closure costs were not collected from 54 lessees. Required plantation of 13,64,800 saplings over 6,824 acres was not carried out, and rehabilitation of closed mines was left unmonitored, risking long-term environmental degradation.