NEW DELHI: The special investigation team (SIT) on black money, headed by Justice M B Shah, is closely monitoring the many cases of money laundering and tax evasion by mining companies across Goa, Odisha and other parts of the country. 

Investigators believe the mining sector has been a key area for huge black money generation in recent years, and a significant portion of it has been taken out of India through various means to tax havens and other foreign destinations. 

Justice Shah has in the past headed the commission on illegal mining that uncovered largescale irregularities in Goa and Odisha. In some of those cases, the commission recorded details of various ways in which mining companies had created entities in tax havens abroad to take out money from India. 

Based on Justice Shah's findings on illegal mining, the Enforcement Directorate has filed complaints under Prevention of Money Laundering Act (PMLA) against several mining firms. Among those who have been questioned in connection with the cases are directors of Timblo Private Limited, run by the Timblo family, members of which have figured in the Centre's list of those with bank accounts in tax havens submitted to the Supreme Court. 

According to sources, most of the mining companied accused of taking out money from India are operational mostly in Odisha and Goa. These companies have adopted several strategies for generating black money and sending them to tax havens. 

One of the strategies established by the various commissions including that of Justice Shah and Justice Santosh Hegde when he was Karnataka Lokayukta was under-invoicing the ore exported. 

Justice Hegde pointed out that Obalapuram Mining Company of G Janardhana Reddy had sent out iron ore abroad using billing from a company controlled by Reddy in Singapore at a heavily subsidized rate, thus avoiding payment of full duties in India. Much of the money earned through such routes was diverted to tax havens abroad, thus also avoiding further taxes in India. 

Sources said the mining industry cases were being closely watched by the SIT, and major breakthroughs could be expected. "Many of the cases are already established, and the amounts involved are significant. It is a sector where we are expecting major gains," a senior official said.