Dantewada:
One of Essar's senior-most executives has been arrested by the police in Dantewada for allegedly paying "protection money" to Naxals who operate in the area. Essar is involved with mining in this part of Chhattisgarh.
DVCS Verma was questioned and then arrested this afternoon. He has been accused of sedition. Two weeks ago, a contractor named BK Lala was found with 15 lakhs in Dantewada. He told the local police that he was transporting the cash to Naxals on behalf of Essar.
Verma, who is based in Kirandul in Dantewada district "has been arrested after police got evidence of the Essar Group's role in huge cash transfers to the Maoists," Superintendent of Police Ankit Garg told IANS. He hinted that more Essar officials in Chhattisgarh and outside the state could be questioned for giving money in phases to the Maoists.
Recently, WikiLeaks posted a diplomatic cable dated January 11, 2010 which claims, "A senior representative from Essar, a major industrial company with large mining and steel-related facilities in Chhattisgarh, told Congenoff (Consul General Office) that the company pays the Maoists 'a significant amount' not to harm or interfere with their operations." The cable was sent from the US consulate in Mumbai to Washington.
Essar has denied the allegations. "The Essar Group vehemently rejects all allegations made regarding payments to the Maoists. Essar would like to state that such baseless allegations are being made to hurt the image and reputation of the group, which is a law-abiding corporate."