Bhubaneswar: The Union Ministry of Environment, Forest and Climate Change (MoEFCC) has directed the state government to examine allegations of illegal mining at Gayabandha laterite stone quarry in Khordha district and submit an action-taken report (ATR), sources said.
In a letter dated July 31, 2026, the Regional Office of MoEFCC in Bhubaneswar directed the Director of Forest, Environment and Climate Change department to investigate a complaint lodged by RTI activist Pratap Chandra Mohanty, alleging large-scale illegal mining, environmental violations and misuse of official permissions at the quarry, sources informed Monday.
The complaint stated that the quarry was granted Environmental Clearance (EC) March 13, 2021 for an annual production of 1,800 cubic metres over a 4.99-hectare lease area. The clearance was later transferred to leaseholder Prahallad Biswal, who obtained the required Consent to Operate (CTO) from the OSPCB, and a mining lease valid until April 24, 2027.
Mohanty alleged that although official records show regular production and dispatch of laterite stone between 2022-23 and 2025-26, satellite imagery indicates no mining activity in the lease area. He also said more than 1,500 transit passes (Y-Forms) were issued despite the alleged absence of mining within the lease boundary. These transit passes were allegedly used to transport laterite stone extracted from adjoining areas while the production was shown against the authorised quarry.
The MoEFCC noted allegations of mining outside the approved lease area, violation of EC conditions, misuse of transit passes to regularise illegally extracted minerals, and failure by the authorities to properly inspect and monitor mining operations while continuing to grant or renew statutory permissions.
The RTI activist further questioned the approval of the mining plan without proper verification of the lease area and alleged that mandatory inspections required under the EC conditions were not carried out before the CTO was renewed. He also claimed that the EC was transferred again July 13, 2026 to Somadatta Das and that a fresh mining plan proposing extraction of 20,000 cubic metres was approved despite the alleged non-operation of the quarry within the lease area.
Mohanty sought suspension of the transferred EC, cancellation of transit passes issued under the new approval, withdrawal of the CTO, criminal action against the leaseholders, the mining consultant and officials, and an investigation by ED.
The MoEFCC enclosed the complaint with its letter and requested the state government to examine the matter and furnish an ATR for further action.
State Director of Environment KS Pradeep said, “We have received the letter from the Centre and necessary action will be taken in this regard soon.”
