Investment in Dolostone, Sandstone, and Limestone in Mirzapur and Sonbhadra Raises Concerns
Lucknow – A significant controversy has emerged regarding the alleged investment of billions of rupees in land by officials from the State Tax Department. Reports indicate that in an effort to conceal undeclared income amounting to billions, these officials have acquired mountains rich in dolostone, sandstone, and limestone located in Mirzapur and Sonbhadra.
As investigations into land transactions involving a builder in Ambedkar Nagar gain momentum, several high-ranking officials are now under scrutiny. Each mountain reportedly generates an average annual royalty of between Rs 20 to 30 crore.
The introduction of the GST system in the latter half of 2017, coupled with the economic impact of demonetization, created a fertile ground for corruption. The two ensuing years presented an array of opportunities for illicit gain. Sources suggest that a builder from Awadh has been used as a front, while a powerful group within the department diverted profits into the mountains of Purvanchal.
Alarming reports state that this group has wreaked havoc in the hills of Sonbhadra and Mirzapur, engaging in the purchase of mountains featuring hollow stone, limestone used in cement production, and even coal deposits. Historically, dolostone in this region was priced at Rs 160 per cubic meter; however, land sales through tenders have recently soared to Rs 3000 per cubic meter.
The introduction of an e-tendering system has further escalated these rates, with royalty fees climbing from Rs 400 to Rs 1000 per cubic meter. The royalty for mining can range from 100,000 to 500,000 cubic meters annually, implying that a single mountain’s royalty could average between Rs 20 to 30 crore.
Syndicates have been reportedly acquiring mountains at inflated tender rates—raising prices ten to twenty times—while utilizing the facade of lawful business activities to launder significant amounts of black money. Within this scheme, the focus appears to be less on generating legitimate profits and more on squandering undeclared funds.
As more details emerge, the implications of this ongoing investigation could reveal a deeper network of corruption within the State Tax Department and highlight the urgent need for accountability in managing natural resources.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.