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SC halts CBI probe into alleged Rs 5,832 Cr Tamil Nadu beach sand mining scam

SC halts CBI probe into alleged Rs 5,832 Cr Tamil Nadu beach sand mining scam

New Delhi, May 1 (UNI) In a significant interim relief to private mining firms, the Supreme Court has stayed the Madras High Court’s February 17 order directing a CBI investigation into the alleged Rs 5,832 crore beach sand mining scam in Tamil Nadu.

A bench, comprising Justices Dipankar Datta and Manmohan, on Wednesday passed the stay order while hearing a batch of Special Leave Petitions (SLPs) filed by V V Mineral, one of the firms implicated in the case.

The bench also directed that all parties maintain status quo until further orders.

“We direct the parties to maintain status quo. We also stay the Madras High Court’s direction for a CBI probe,” the Supreme Court said in its brief interim order.

The February 17 order of the Madras High Court had mandated a CBI investigation into the role of unknown public servants in the alleged illegal mining operation and had also directed the transfer of mineral stocks to the Indian Rare Earths Limited (IREL), a directive that now stands suspended.

Senior advocates Mukul Rohatgi, Siddharth Agarwal and Dhruv Mehta appeared on behalf of V V Mineral and sought an urgent stay on the High Court’s order and ongoing CBI actions.

They argued that the order was passed without due consideration of material facts and caused grave prejudice to their client.

The Tamil Nadu government, through senior advocates Arvind P Datar and N R Elango, had earlier filed a caveat petition to ensure its side would be heard before any relief was granted by the top court.

However, the Supreme Court dispensed with the service of notice to some respondents, including IREL.

The CBI, which had launched raids across 12 locations in Tamil Nadu on April five, had alleged that firms like V V Mineral and others were involved in the unauthorised extraction of rare minerals, including monazite, and pointed to a nexus between private companies, political figures, and government officials.

By staying the Madras High Court’s order, the apex court has temporarily halted the central agency’s probe and put on hold all related departmental proceedings.

The matter will be taken up again after the respondents submit their replies.

UNI SNG SS

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