Prime Minister Narendra Modi, in his first Cabinet meeting, constituted a special investigative team (SIT) headed by Justice MB Shah and vice- chaired by Justice Arijit Pasayat to dig out black money in compliance with the Supreme Court directive.
The natural resources of Odisha are the cradle of black money. Mining is one of key sectors where large scale illegal extraction took place over decades. Justice Shah Inquiry Commission, set up under a Supreme Court order in 2012, has estimated the size of illegal iron ore mining in Odisha to the tune of Rs 60,000 crore. These companies were found guilty of illegal mining, excess production, violation of Rule 37 of Mineral Concession Rule and evading crores of rupees in terms of income tax and sales tax payment. There are other minerals like cromite, coal, aluminum which remained out of the purview of the Shah Commission where generation of black money is reported .In September 2009, ship Blackrose with fake licence sank near Paradip Port after carrying suspected illegal ores describing the extent of international ramification of mining black market syndicate. Besides, there are various minor- minerals under State Government subject, where regular illegal raising and querying takes place. In response to Shah Commission, the Odisha Government slapped fines of Rs 58,000 crore on 27 companies. But the companies did not pay by taking shelter of court. It can be said that the tune of black money is Rs 10,000 crore per annum. The mine’s black money is not only created by mine owners but has spread over beneficiaries ranging from operators, transporters, stevedores and international traders.
Forest is another natural sector where black money is generated. There are four major sources of black money created in the forest areas comprising of ganja-cultivation, illegal timber trade, Kenduleaf smuggling and NTFP illegal trade. Even though thousands of kg of hemp are burnt by the Excise Department every year during raids, illegal cannabis plantation continues to flourish in interior parts of Odisha. The Odisha Government has admitted that there are large tracts under cannabis cultivation in the forest covered districts of Deogarh, Sambalpur, Angul, Boudh, Kandhamal ,Gajapati, Rayagada and Malkangiri. In the 2013-14 financial year, 9.05 million plants were incinerated by the Forest Department. The value of one ganja plant in the market is estimated at Rs 1,000. The farmers are cultivating ganja in their fields at some places. The business is estimated to be ballooned to Rs 1,000 crore every year. Now it is reported that traders from Bhubaneswar, Cuttack, Brahmapur and other States called “investors” strike deals with farmers to grow ganja on their fields and provide seed, fertiliser and upfront payment. With at least 4,000-5,000 ganja plants per acre, the farmer grosses about Rs 6-8 lakh per acre. A report of the Justice PK Mohanty Commission, submitted to the Government in 2008, said that processed ganja is smuggled in a big way through Chhattisgarh and Andhra Pradesh.
Officially, illegal cultivation has been reported in 13 districts. But enforcement officials say there are two major tracts of more than 6,000 acre each, which account for most of the illegal cultivation. The first tract is in Malkangiri district and the second is spread across the Sambalpur, Deogarh and Angul districts. Owing to the Maoist menace in the State, the second tract is increasingly finding favor with the ganja trade.
Another forest based black money source is timber trading. On January 14 last, the forest officials of Odisha and Jharkhand unearthed a timber processing unit operating illegally at a forested hamlet under Bisra range in Sundargarh district. The move came in the wake of timber mafias wreaking havoc in bio-rich-reserve of Saranda forest in Jharkhand territory. The illegal trade in valuable timber continues in all forest divisions across Odisha due to weak policing and lack of modern weapons by forest guards. The recent withdrawal of CRPF from costly timber-wood Barbara forest in Khurda district is seen as boon for timber-mafias. The NTFP trade and bamboo trade creates black wealth from forest economy.
Smuggling of Kendu leaves from the State has been a hot issue in Odisha and it is estimated that the turnover in this illegal sector is almost equal to that in the legal sector (Government trading). Smuggling during bush cutting is seen. This happens when the Government fails to harness the full potential of the area where bush cutting has been done. Two major smuggling routes have been identified: One in the western Odisha and the other in southern Odisha. The smuggling from at least three Kendu leaf ranges (Kalimela, MV79, and Malkangiri) in the Malkangiri district about 20,000 quintals (phal). One estimate puts the quantity of leaves smuggled out to Andhra Pradesh from the border areas of Odisha and AP at around 80,000 quintals though this does not necessarily mean all the stock being sourced from Odisha. However, this suggests that the total quantity smuggled out in/from the State is quite a big one. Kendu leaf worth about Rs 50 lakh is smuggled out from the Athamallik area every month. River route is reportedly used also by the smugglers for easy escape.
large scale trawlers from neighbouring West Bengal and Andhra Pradesh fish in Odisha water and take away marine fish. Marine fishing production is hardly monitored for taxation. There is instance of prawn-seed supply from coastal districts to other States which is an illegal trade. The prawn cultivation is the source of another black money in the State. During the first generation prawn culture in 80s, huge black money was generated from Chilika area. Prawn farms, locally known as gheries, on Government land continued to proliferate along Odisha coast despite State Government’s warning to remove them. The prawn gheries have come up on thousands acres of land in coastal districts of Kendrapada, Jagatsinghpur, Puri, Bhadrak, Baleswar and Ganjam. Most of the Government land closer to Bay of Bengal in Rajnagar tehsil comes under gheri , though it is sanctuary area. In 2000, the State Government had submitted an affidavit saying most of gheries were destroyed in 1999 Super Cyclone and the Orissa High Court directed the Government that no fresh gheries should come up thereafter. However, prawn mafia could not be controlled. In Basudevpur of Bhadrak district, these gheris create water problem for locals. The conflict between the Chilika indigenous fisher folk and the local shrimp mafia continues till now.
Besides, these natural resources, urban land is another area where black money is generated by showing low purchase and sale registration value. It also includes procurement of Government land for some purpose and then selling or subleasing it at high price later. There is allegation of huge kickbacks in the allotment of Government land to private companies. Real estate has faced another dimension of cycling of black money in Odisha. The fake chit fund companies have allegedly hidden crores of duped public money in real estate sector. It has skyrocketed the price of dwelling units to the inconvenience of consumers. The extent of Odisha black money has not been estimated by the Government or by private agencies. The total of black money generated in mining, ganja, timber, kendu leaf, NTFP and fish can be one fourth of GSDP .The second question relates what percentage is invested in the State or in India and what percentage is siphoned out of the countryIJ The SIT on black money is interacting with the Odisha Government and shall reach a conclusion in this regard. But it is the duty of the Odisha Government to work with the Union Government and calculate the size and overseas location of the black money. Black money is not only harmful to Odisha economy but also a threat to the stability of State Government and democracy in Odisha. Slowly, the economic power is shifted from the State to outside people when such parallel economy perpetuates.