Government contests Sagayam panel’s loss math

Chief Secretary Dr Girija Vaidyanathan, while stating that out of 212 recommendations, the government has accepted 131 and rejected 67 of them as they were beyond the scope of relevant laws and rules, said, “Sagayam has uniformly valued and applied $ 1,200 per cubic metre of these granites while such an amount would be paid only to Indian granites having right texture, colour, grade and size.” 

Pointing out that the Madurai Blocks fetched prices ranging from $ 500 to 700 only, the Chief Secretary said the rate of granite blocks varied depending upon these factors and a uniform rate could not be adopted. However, the legal commissioner had taken the value of Indian granites instead of Madurai granites, she said. 

While rejecting Sagayam’s method of measuring the mined block by customs officials prior to their exports and the allegation of the commissioner under declaration of export granites with the collusion of customs officials, particularly in Thoothukodi sea port, the Chief Secretary said, “The IAS officer sourced data from the department relating to granites in block and got details from the trade about export of granite in slabs and tiles. But while valuing their worth he compared and analysed the two sets of data though they are incomparable.” 

Also, rejecting the key recommendation of Sagayam to punish errant officials, the Chief Secretary said, “The estimation made in the Sagayam report is based on transport permit issued by the department of geology and mining. The report has not revealed any factual details of collusion of department officials with lessees in their tax evasion efforts. In the absence of prima facie case made out against the officials of the department, it is considered that no further action is required in this matter.”