A comprehensive investigation has been sought into offshore companies floated by Timex Group, whose promoters are highly connected politically in Andhra Pradesh, in the light of latest Panama Papers revelations.
Stating that any investigation limited to a few offshore accounts would only allow the errant companies and the individuals off the hook, former union power secretary Dr EAS Sarma requested the Ministry of Mines to set up a multi-agency task force to investigate cases such as Trimex, in consultation with Cental Vigilance Commission.
The UAE based Trimex Group has already been under scrutiny of CBI in Andhra Pradesh for its promoters’ role in Eamar-MGF case of Hyderabad in which some political leaders of the State were alleged to have received undue benefits from them. The Trimex Group had already secured a franchise to carry out beach sand mining in Andhra Pradesh and is facing investigation by the state mining department for irregular mining.
Again, recently, the Trimex Group has signed an MoU with Andhra Pradesh government to develop mining projects at Bhavanpadu and Kalingaptanam in the state. The MoU was signed by Trimex Group Managing director Pradeep Koneru in the CII partnership summit organized in January at Vizag. The project involves an estimated investment of Rs 2,500 crore and was claimed to generate 5,500 direct and indirect jobs. Under the project, a license will granted to the company to mine beach sand mineral like Ilmenite, Rutile, Zircon , Garnet and Sillimanite. Writing a letter to Balvender Kumar, union secretary, mines, Dr Sarma said the AP government signed the MoU with Trimex despite its dubious track record and investigations by central agencies.
As Trimex Group figured prominently in the Panama Papers as a company that set up as many as 12 companies in British Virgin Island “presumably after entering AP” , Dr Sarma suspected dealings between Trimex and Andhra Pradesh politicians, past and present.
“I understand that the Panama leaks have revealed that the correspondence that Trimex has been involved in also reported the progress of the ongoing CBUI investigations in India! Apparently, as per the news reports, the promoters of this company had also tried to influence the CBI investigation at one point of time but failed to succeed. It is therefore ironic that the AP State government should choose to sign fresh MOUs with that company for sea sand mining,” Dr Sarma said in his letter.
He marked copies to Central Vigilance Commission, Union Revenue Secretary, CBI, Enforcement Directorate, CBDT for necessary action from their end. “Any delay in undertaking this investigation will only allow the culprits to plunder more monazite and other minerals to the detriment of the public interest,” he said.