SC stalls CBI probe into Rs 5,832-cr beach sand-mining 'scam' in TN
CBI had alleged nexus between mining companies and public servants in illegal mining, transportation, and export of valuable sand minerals from coastal districts
The Supreme Court has stalled the Central Bureau of Investigation (CBI) probe into the Rs 5,832-crore beach sand-mining ‘scam’ in Tamil Nadu, which had alleged illegal mining of rare minerals like monazite and a nexus between private firms, politicians, and officials.
Notices issued to respondents
In an order issued on April 28, the top court, while granting VV Minerals a stay that haltson the CBI probe and departmental inquiries, also issued notice to respondents and directed all parties to maintain the status quo regarding the Madras High Court’s directions, as stated in the impugned judgment dated February 17, 2025.
Also read: TN: CBI conducts mega search in Rs 5,800-crore sand-mining ‘scam’
The bench of Justices Dipankar Datta and Manmohan also dispensed with the service of notice for certain respondents, including Indian Rare Earths Limited and others.
CBI raids and probe
The Supreme Court’s intervention came after VV Mineral, represented by senior advocates Siddarth Agarwal, Mukul Rohatgi, and Dhruv Mehta, filed multiple special leave petitions challenging the Madras High Court’s orders in WP Nos. 14048/2024, 14052/2024, 14055/2024, and 14058/2024. The stay effectively pauses the CBI’s investigation, which had gained momentum with raids on April 5, 2025, across 12 locations in Tamil Nadu, targeting VV Mineral and other firms for illegally mining minerals worth Rs 3,581.11 crore between 2000 and 2017.
Following the raids and finding of incriminating documents, the CBI had alleged a nexus between mining companies and public servants to cheat the government and violate regulatory frameworks for the illegal mining, transportation and export of valuable sand minerals including garnet and ilmenite from the coastal districts in Tirunelveli, Thoothukudi and Kanyakumari.
Watch: CBI Raids in Tamil Nadu | Uncovering Rs 5,832 Cr Illegal Sand Mining Scandal
The Tamil Nadu government, represented by senior advocates Arvind P Datar and NR Elango, had filed a caveat petition to ensure their position is heard.
On transfer of mineral stocks
In February this year, the Madras High Court ordered the CBI to investigate the role of unknown public servants and directed the transfer of mineral stocks to Indian Rare Earths Limited (IREL), a move now on hold.
Also read: ‘Illegal’ sand mining: SC questions TN govt over writ petition challenging ED summonses to DCs
In an order issued by state Natural Resources Department’s Additional Chief Secretary K Phanindra Reddy, on April 8, the Tamil Nadu government had said that the entire stock of beach sand minerals held by the mining companies in Tirunelveli, Thoothukudi and Kanyakumari districts, will be handed over to IREL (India) Limited upon getting tentative price details, including the cost of security and transportation. The government has constituted a committee comprising the commissioner of Geology and Mining, the chief executive officer of Tamil Nadu Infrastructure Development Board, and special secretary of the Finance Department to approve the cost of minerals.
