Maharashtra Government to Deduct ₹29 Crore Penalty from Contractor's Pending Bills
In a significant development, the Maharashtra government has announced its decision to recover a substantial penalty of nearly ₹29 crore imposed for illegal minor mineral extraction. The recovery will be executed by deducting the amount directly from the contractor's pending bills, as confirmed by Revenue Minister Chandrashekhar Bawankule during the Assembly session on Wednesday.
Illegal Mining at Sarangwadi Reservoir Project
The issue came to light during the Question Hour when legislator Shweta Mahalle raised serious concerns regarding alleged large-scale illegal mining activities. These activities were reportedly carried out by Waterfront Construction Private Limited at the Sarangwadi storage reservoir project located in Buldhana district's Mehkar taluka.
Mahalle informed the Assembly that the irrigation project, originally sanctioned in 2009 with the objective of improving water availability for farmers in Chikhli and Mehkar regions, remains incomplete even after more than a decade. However, subsequent government investigations uncovered that the contractor had installed crusher machinery and conducted extensive extraction and transportation of minor minerals within the reservoir area without obtaining the necessary permissions.
Details of the Penalties Imposed
According to Mahalle's statement, two separate inquiries were conducted into the violations, each resulting in significant financial penalties. The first probe led to a fine of ₹6.22 crore, while the second inquiry imposed an additional penalty of ₹22.56 crore. Collectively, these penalties amount to approximately ₹29.18 crore, which was formally imposed on the company in 2018.
Government's Response and Recovery Mechanism
In his reply, Revenue Minister Chandrashekhar Bawankule confirmed the findings of the investigations. He stated that the company had indeed carried out mining operations in the Sarangwadi reservoir area without securing permission from the district collector, environmental authorities, or other competent agencies. Furthermore, the contractor failed to comply with essential regulatory requirements, including the payment of royalty and adherence to environmental norms.
"As a result, a penalty of about ₹29 crore was imposed," Bawankule told the Assembly. He elaborated that officials from the Water Conservation Department had provided written information indicating the contractor had approximately ₹40 crore pending with the government. "The process was initiated to recover the penalty amount directly from these pending bills," he added, outlining the government's strategy for ensuring the penalty is recovered efficiently.
Broader Implications and Next Steps
This move underscores the government's commitment to enforcing environmental regulations and holding contractors accountable for unauthorized activities. The recovery of the penalty from pending bills represents a practical approach to ensure compliance without further delays. The case highlights the importance of proper permissions and adherence to legal frameworks in infrastructure projects, particularly those involving natural resources.
The government's action is expected to serve as a deterrent against similar violations in future projects, reinforcing the need for transparency and regulatory compliance in developmental initiatives across the state.
