Tamil Nadu’s ₹5,882 Crore Mineral Mining Scam: Sri Kari Sastha Karudaiyar Temple Lands Exploited, Devotees Seek ₹1,000 Crore Royalty For Temple

The Madras High Court has ordered a Central Bureau of Investigation (CBI) probe into the large-scale illegal mining of beach sand minerals (BSM) in Tamil Nadu, which has been taking place since 2000-01. The order was issued on 17 February 2025, by a bench comprising Hon’ble Justice S.M. Subramanian and Hon’ble Justice M. Jothiraman. The court has directed the CBI to investigate potential collusion between politicians, government officials, and private mining companies in the illicit extraction of minerals, including garnet and thorium, from the state’s coastal areas.

Following the court’s order, the Tamil Nadu government has issued notices to several companies demanding royalties for the illegally mined minerals. The companies and the amounts sought from them are as follows:

  • V.V. Minerals – ₹913 crore
  • TVL Industrials – ₹276 crore
  • Transworld Garnet – ₹196 crore
  • Beach Mineral Sand Company and its sister concern – ₹425.64 crore
  • Ocean Garnet Sands – ₹191 crore

The government has estimated a total revenue loss of ₹5,882 crore due to unauthorized mining operations in the districts of Tuticorin, Tirunelveli, and Kanyakumari. Officials have stated that in Tuticorin district alone, the revenue loss amounts to ₹2,002 crore.

The issue has also drawn attention from devotees and temple organizations. The president of the Temple Worshipers’ Association, TR Ramesh, has alleged that several lakh tons of mineral sand were illegally extracted from thousands of acres of land belonging to the Sri Kari Sastha Karudaiyar Temple in Navaladi Panchayat, near Vetiyaanvilai in Tirunelveli district. He has demanded that the temple administration receive at least ₹1,000 crore in compensation from the illegally mined revenue.

Ramesh has further stated that the extracted minerals, particularly garnet and thorium, were exported abroad without permission, raising concerns over national security. He cited a past case filed in the courts by an individual named Kannadasan, who later withdrew it due to alleged political pressure. He has urged the CBI to conduct a thorough investigation into the illegal sand mining from temple lands and to take strict action against those involved.

The Tamil Nadu government has stated that district collectors have been instructed to collect the amounts due from the companies involved. The administration has assured that it will fully cooperate with the CBI investigation and provide all necessary records.

Activists and legal experts have reiterated that the large-scale illicit extraction of thorium poses a threat to national security. They have urged the authorities to ensure strict enforcement of mining regulations and to take decisive action against those responsible for the extensive environmental and economic damage caused by these illegal operations.

(With inputs from Dinamalar)

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