Panaji, Oct 14 (IANS): Political parties had requested Vedanta Resources-owned mining firm Sesa Goa for donations as part of "common practice", the multinational group said Friday even as the spectre of an alleged Rs.25,000 crore illegal mining scandal loomed large in the state.
In a newspaper advertisement in local newspapers here, Sesa Goa admitted to political donations which the company claimed to have been making and said the clarification was being issued with a sense of propriety and transparency.
The advertisement came against the backdrop of a national TV channel running a story this week on millions of rupees shelled out by the company to national and local political parties in Goa, amid allegations of illegal mining against several corporates.
Quoting from Sesa Goa's balance sheet, the channel said in 2009-10, the company paid Rs.85 lakh to the main opposition party, while the ruling Congress got only Rs.30 lakh. Maharashtrawadi Gomantak Party got Rs.2 lakh, while Shiv Sena got Rs.1 lakh.
Similarly in 2007-08, the company had paid Rs.28 lakh each to the two national parties, which was also the year when the company got permission to enhance iron ore production from four million tonnes to seven million tonnes from its three mining sites.
The company did not deny the report. "Like many other corporate houses in India, Sesa indeed made donations to political parties but strictly in accordance with due process prescribed under law, including the Companies Act and the Income Tax Act," it said.
"It is common practice among political parties to approach business houses for donations at different points of time," it said, adding the donations were made only after political parties made requests to the mining firm, the biggest in operation in Goa.
"It is unfortunate allegations have been made against the company for excess production without checking and/or understanding basic facts," read the clarification, denying any link between the donations and the nod to enhance production.
Sesa Goa has in part been charged with several allegations of illegal mining -- in one case by Chief Minister Digambar Kamat himself in April inside Goa's legislative assembly.