BENGALURU | JUNE 19, 2017:

The High Court of Karnataka was informed on Monday that the process of re-evaluating the dumps and mines of Bharat Gold Mines Ltd. (BGML) will take another four months for Mineral Exploration Corporation Ltd. (MECL), which has been asked to conduct a survey and submit a report to the Union government to decide the future of the closed gold mines.

Counsel for both the government and BGML pointed out to the court that MECL was given nine months to submit the report and six months have lapsed. It requires another four months to complete the survey. The submissions were made during the hearing on issues related to the possibility of revising BGML, which has been non-operational since 2001. The issue over BGML is pending before both the Supreme Court and the High Court. Justice L. Narayana Swamy adjourned further hearing till four months while asking MECL to expedite the submission of report to the Centre.

The Board for Industrial and Financial Reconstruction (BIFR) had ordered its closure. However, a single judge of the High Court in 2009 permitted inviting global tender for sale of assets of BGML for the limited purpose of reviving the company and said that BGML ex-employees should be given priority over other bidders with certain conditions. Later, a Division Bench of the High Court said that permitting global tender was not in the country’s interest and asked the Union government to examine the possibility of reviving it.

Later, the Supreme Court allowed the Centre to go ahead with its new proposal to invite global tender to revive the defunct mines. Subsequently, the Union government asked MECL to re-evaluate dumps and mines so that it would take a firm stand on possibility of reviving the mines.

(Source: http://www.thehindu.com/)