The latest report from the Comptroller and Auditor General (CAG) has slammed the state's Mining and Geology Department for allowing this large-scale extraction to bypass mandatory payments to the District Mineral Foundation (DMF)-money legally earmarked for schools, clinics, and clean water in mining-affected villages.
The audit found that between 2018-19 and 2022-23, these five companies utilised "incidental mining" provisions to move industrial-scale quantities of minerals. Of the 1.85 crore metric tonnes (MT) extracted, the department lacked any documented justification or government approval for 1.44 crore MT-approximately 78 per cent of the total volume.
Despite the massive scale, the companies failed to contribute to the DMF. The CAG noted that the annual average extraction by these five firms was significantly higher than the production recorded by companies operating under regular, legal mining leases.
In a defence, the CAG termed "untenable," the Mining Department claimed in April 2024 that DMF contributions were not collected because the limestone was extracted from "outside designated lease areas." The audit flagged this as a major failure of oversight, noting that such an interpretation effectively encourages unregulated mining and undermines the state's regulatory framework.
Under the Meghalaya Minor Minerals Concession Rules (MMMCR), 2016, all permit holders and lessees are required to contribute to the DMF. By allowing companies to evade these payments, the state failed to realise approximately Rs 43.95 crore in dues meant for tribal welfare.
The findings raise serious questions regarding the monitoring of the state's mineral resources, suggesting that the "incidental mining" provision has been used to facilitate a systematic evasion of statutory obligations with the apparent complicity of state regulators.