Last week, The Rajasthan government cancelled the allocation of 601 mines, and asked the state Lokayukta to probe the issue.
Under scrutiny over alleged illegal allocation of mines in Rajasthan, the Vasundhara Raje government has cancelled the allotment of 601 mines. But the opposition Congress is on the offensive, demanding the mine scam be probed by the Central Bureau of Investigation.
The issue began unfolding after senior Indian Administrative Service (IAS) officer, Ashok Singhvi was arrested last month. Investigators had found that the officer, who was principal secretary mines, was the mastermind behind a racket. The allotted mines would be closed down on some pretext or the other, and later, hefty sums were demanded for their reopening.
It was also found that 600 mines were allocated between, October last year to January this year in Rajasthan.
The Congress has alleged that Mr Singhvi's arrest is just the tip of the ice berg, alleging that the scam has led to a revenue loss of nearly Rs 45,000 crores.
In October 30 last year, the Centre issued a guideline to all state governments that mines should be auctioned and not allocated. Yet the state government allotted 653 mines in 72 days between October 2014 and January 2015, claims the Congress.
Last week, the government cancelled the allocation of 601 mines, and asked the state Lokayukta or ombudsman, to probe the issue
"Allocation itself is illegal, the fact that you are admitting and cancelling 601 mines means you are completely caught and complicit," said Sachin Pilot, the state Congress chief.
The BJP has blamed the Congress for trying to politicise the issue.
Minister for health and parliamentary affairs, Rajendra Rathore said, "The Lokayukta was appointed after due consultation with the Congress, so they don't have faith in him."
But there could be more trouble for the government. After a petition by the Congress, the CAG or the Comptroller and Auditor General, has agreed to look into the issue, that the mines were allegedly allocated and not auctioned.