Karnataka govt. to seek legal opinion to initiate action against Adani Group’s firm over ₹850-crore dues

The Karnataka government will seek legal opinion on initiating criminal proceedings against Adani Group’s firm ACC Ltd. over alleged dues of about ₹850 crore linked to a limestone mining lease in Chittapur taluk, Agriculture Minister N. Cheluvarayaswamy informed the Legislative Council on Tuesday.

Replying on behalf of Mines and Geology Minister S.S. Mallikarjun, he said the company has challenged the demand in court and the matter is under hearing. Given the dispute over the quantum of dues, the government would consult the Law Department and the Advocate General before deciding on further action, including the possibility of criminal proceedings, he said.

Royalty recovery

The issue triggered a sharp exchange in the House, with members from both the ruling and the Opposition questioning the handling of royalty recovery and the continuation of quarry operations.

Raising the matter, Congress member K. Shivakumar, on behalf of party colleague Arathi Krishna, alleged that substantial dues remained unpaid even as mining activity continued. Ms. Krishna, in her written question, sought to know whether the lease period for the Kannur limestone block at Wadi in Kalaburagi had expired and, if so, what action had been taken against the company for “unauthorised” mining without paying the total dues of ₹850.21 crore towards royalty, rent, or penalty payable to the State government.

No action

She claimed that despite the Law Department having given a written opinion to the Mines Department that the said company should not be permitted to undertake mining activities until it clears all pending dues payable to the government, no legal action has been initiated against ACC, and instead a letter has been written to the Central government regarding renewal of the lease in favour of the company. She questioned the apparent disparity in enforcement between small quarry operators and large corporate entities.

“After the Adani Group took over quarrying, they had to pay ₹837 crore as royalty. Till today, they have not paid the royalty. What prompted you to exempt them from this royalty?” she asked.

BJP member C.T. Ravi echoed similar concerns, questioning the legal and procedural basis for allowing participation in bidding and continuation of operations despite pending dues.

“Do your rules allow those with pending dues to participate? If such a provision exists, under which rule does it exist?” he asked, seeking clarity on recommendations of the High-Level committee, Law Department and concurrence of the Finance Department.

No fresh licence

Responding, Mr. Cheluvarayaswamy maintained that no fresh licence had been granted and that the existing lease was continuing under court directions. Part payment had been made, he said, while the balance would be determined through legal proceedings.

He reiterated that recovery could not be enforced immediately as the dues themselves were under dispute. “Until recovery is possible, no further permission will be given,” he said, adding that the government would act based on legal advice.