The court ruled that ownership documentation is essential for the interim release of seized iron ore, allowing e-auction under supervision to mitigate losses and maintain public interest.

ORDER :

J.M.Khazi, J.

Crl.P.No.100029/2023 is filed by the State challenging the order dated 05.10.2020, passed by JMFC Ankola, rejecting the application filed by the State for interim release/disposal of the seized iron ore in Ankola PS Cr.No.17/2009–10.

2. In W.P.No.105060/2024, petitioner who is applicant No.4 before the trial Court, has challenged the order dated 23.09.2023 passed by the same court rejecting the application filed by it and others under Section 451 r/w 457 Cr.P.C, seeking release of 48,917.48 metric tonnes of iron ore in stack Nos.M.C-9 and M.C-11 in the same crime number.

3. Though these two petitions are arising out of two different orders, they relates to the same subject matter. While the State is seeking interim relief in respect of the entire stock of iron ore seized at Belekeri port premises, writ petitioner is seeking the said relief in respect of stack Nos.M.C-9 and M.C-11, totally measuring 48,917.48 metric tonnes. Therefore, these two petitions involve common issues and common discussion and as such they are clubbed together and disposed of by a common order.

4. For the sake of convenience petitioner in Crl.P.No.100029/2013 is referred to as State and petitioner in W.P.No.105060/2024 is referred to as writ petitioner.

5. Brief facts leading to the filing of these two petitions are that on 15.03.2010, a complaint came to be registered in Cr.No.17/2009–10 (FOC.139/2009–10) by the Ankola P.S, for the offences punishable under Section 2(7)(b)(iv), 62, 24 , 80 of the KARNATAKA FOREST ACT , 1963 and Rule 143 and 162 of the KARNATAKA FOREST RULES , 1969, against the conservator of Belekeri Port, for illegal stock of iron ore in huge quantity, which could not be ascertained at that time and the FIR was transmitted to the JMFC, Ankola.

5.1 On 20.03.2010, approximately 5 lakhs Metric tones (for short 'MT') of iron ore, then worth Rs.150 Crores was seized, on as-is where-is basis at Belekeri Port, which was illegally transported from Ballari, Chitradurga and other areas and stored in the port area. It was handed over to the port conservator, Belekeri and PF was submitted to the JMFC Ankola, which permitted it to retain the same until further orders.

5.2 The JMFC Ankola rejected applications filed under Section 451 Cr.P.C seeking interim custody on the following ground that they have failed to produce the ownership documents.

"1. Greentex Mining Industries Limited Bangalore on 7-4-2010 as not pressed.

2. M/s Doddannawar Brothers, Belagavi &

3. ILC Industries Limited, Hospet on 12-4-2010

4. P.K.Pounraj on 12-8-2011."

4.3 Though the application filed by Sri Venkateswara transport was allowed, it could not be released as the same failed to produce the valid documents.

5.4 However, during the investigation as evident from the stock statements furnished by the four licensed stevedores, it was found from the port conservator that the actual iron ore seized on 20.03.2010 was 8,05,991.083 MTs, belonging to various exporters/parties. However, prior to 02.06.2010, most of the seized iron ore has been exported out of port area. On 02.06.2010, the investigating officer found majority quantity of seized iron ore missing and hardly approximately 2.00 lakh MTs of iron ore was visibly found in the port area and remaining quantity of approximately 6.00