Bribery Scandal: Tax Officers Allegedly Used Mineral Hills to Launder Billions

A major controversy has come to light about some officials from the State Tax Department who are accused of investing billions of rupees in land. Reports say that these officials bought mountains full of valuable minerals such as dolostone, sandstone, and limestone in Mirzapur and Sonbhadra to hide their undeclared income worth billions.

Investigations are now focusing on land deals connected to a builder from Ambedkar Nagar, and several senior officials are under investigation. Each of these mountains is said to earn a yearly royalty of around Rs 20 to 30 crore.

Reports suggest that this group caused serious damage to the hills of Sonbhadra and Mirzapur by buying mountains containing hollow stone, limestone (used in cement), and even coal. In the past, dolostone in this area cost about Rs 160 per cubic meter, but recently, land sold through tenders has reached prices as high as Rs 3,000 per cubic meter.

The launch of the GST system in 2017 and the effects of demonetisation created conditions where corruption could grow easily. Over the next two years, many officials reportedly took advantage of this situation. Sources claim that a builder from Awadh acted as a front while a powerful group within the department secretly invested large amounts of money into the mountains of Purvanchal.

The new e-tendering system has pushed these rates even higher. Royalties have increased from Rs 400 to Rs 1,000 per cubic metre. Since each mountain produces about 100,000 to 500,000 cubic metres of material per year, the annual royalty from one mountain can reach Rs 20 to 30 crore.

Many believe that such groups have been buying these mountains for prices far above their real value sometimes ten to twenty times more, while pretending to run legal businesses. In reality, their main goal seems to be hiding and spending unaccounted money rather than making real profits.

Current investigations may reveal even more corruption within the State Tax Department, showing how urgently better rules are needed to protect and manage the state’s natural resources.