After persistent protests and public pressure,[2] Karnataka Chief Minister Yeddyurappa, who was balancing political considerations with control of corruption, admitted to an illegal iron-ore export racket at Belekeri Port involving 35 lakh metric tonnes of iron ore.[3][4] It is said that the scam was worth an estimated 60,000 crore rupees (US$12 billion).
[5][6] This iron ore from the Bellary region is alleged to have been illegally mined after paying a minuscule royalty to the government.
[8][9][10] Justice N. Santosh Hegde resigned from the Lokayukta position on 23 June 2010 after an officer (Deputy Conservator of Forests R Gokul) was suspended by order of minister J. Krishna Palemar and he felt powerless to help.
Overloaded trucks carrying ore have caused hundreds of fatal accidents on the roadways leading to ports such as Belekeri.
The chapter 2 of the Lokayukta Report on illegal mining in Karnataka [20][21][22][23] details the method in which the Belekeri Port was the anchor point of export of illegally mined iron ore.[24] The report mentions the involvement of private companies – Shree Mallikarjun Shipping Pvt Ltd (SMSPL), Adani Enterprises Ltd, Salgaonkar Mining Industries Pvt Ltd, Dream Logistics Company India Pvt.Ltd and Raj Mahal Silks in large scale illegal exports of ore.