Political donations common practice: mining firm Sesa Goa
October 14th, 2011 - 6:56 pm ICT by IANSPanaji, Oct 14 (IANS) Political parties requested Vedanta Resources-owned mining firm Sesa Goa for donations as part of “common practice”, the multinational group said Friday as the spectre of the massive illegal mining scandal loomed large in the state.In a newspaper advertisement in local newspapers here, Sesa Goa admitted to political donations that the company claimed to have made with a sense of propriety and transparency and said that “it is extremely unfortunate that certain activists and sections of media are ascribing motives to such political donations”.
The advertisement came against the backdrop of TV channel CNN-IBN running a story this week on millions of rupees shelled out by the company to national and local political parties in Goa, amid allegations of illegal mining against several corporates.
Quoting from Sesa Goa’s balance sheet, the channel said in 2009-10, the company paid Rs.85 lakh to the main opposition party, while the ruling Congress got only Rs.30 lakh. Maharashtrawadi Gomantak Party got Rs.2 lakh, while Shiv Sena got Rs.1 lakh. Similarly in 2007-08, the company had paid Rs.28 lakh each to the two national parties, which was also the year when the company got permission to enhance iron ore production from four million tonnes to seven million tonnes from its three mining sites. The company did not deny the report.
“Like many other corporate houses in India, Sesa indeed made donations to political parties but strictly in accordance with due process prescribed under law, including the Companies Act and the Income Tax Act,” it said, saying that the donations were made by account payee cheques.
“It is common practice among political parties to approach business houses for donations at different points of time,” it further said, adding the donations were made only after political parties made requests to the mining firm, the biggest in operation in Goa.
“It is unfortunate allegations have been made against the company for excess production without checking and/or understanding basic facts,” read the clarification, denying any link between the donations and the nod to enhance production.
Sesa Goa has in part been charged with several allegations of illegal mining — in one case by Chief Minister Digambar Kamat himself in April inside Goa’s legislative assembly.
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- '25 mn tonnes illegal ore extracted in five years in Goa' - Nov 23, 2011
- Want transparency in mining lease allotments: Gadkari - Feb 05, 2012
- 'Illegal mining in Goa cannot be brought to book' - Sep 03, 2010
- Goa mining scam: PAC report blames nexus, takes no names (Roundup) - Oct 05, 2011
- Vedanta Resources mines operated illegally in Goa: minister - Mar 17, 2011
- Sesa Goa issued notices for violating norms - Apr 09, 2012
- Goa's battle against mining reaches London - Jun 29, 2011
- Mining association admits to illegal exports from Goa - Nov 21, 2011
- Congress keeping Goa illegal mining report under wraps: Munde - Feb 26, 2012
- BJP fielding candidates of mining lobby: Kamat - Feb 26, 2012
- After Goa's illegal iron ore mining, is gold mining next? - Oct 05, 2011
- Mining scam may hit Kamat's second term chances - Oct 23, 2011
Tags: 1 lakh, business houses, cnn, cnn ibn, companies act, corporate houses, income tax act, iron ore, local newspapers, main opposition party, multinational group, national parties, newspaper advertisement, ore production, payee, political donations, propriety, rs 2, rupees, sesa goa