ORDER : J.M.Khazi, J. Crl.P.No.100029/2023 is filed by the State challenging the order dated 05.10.2020, passed by JMFC Ankola, rejecting the application filed by the State for interim release/disposal of the seized iron ore in Ankola PS Cr.No.17/2009–10. 2. In W.P.No.105060/2024, petitioner who is applicant No.4 before the trial Court, has challenged the order dated 23.09.2023 passed by the same court rejecting the application filed by it and others under Section 451 r/w 457 Cr.P.C, seeking release of 48,917.48 metric tonnes of iron ore in stack Nos.M.C-9 and M.C-11 in the same crime number. 3. Though these two petitions are arising out of two different orders, they relates to the same subject matter. While the State is seeking interim relief in respect of the entire stock of iron ore seized at Belekeri port premises, writ petitioner is seeking the said relief in respect of stack Nos.M.C-9 and M.C-11, totally measuring 48,917.48 metric tonnes. Therefore, these two petitions involve common issues and common discussion and as such they are clubbed together and disposed of by a common order. 4. For the sake of convenience petitioner in Crl.P.No.100029/2013 is referred to as State and petitioner in W.P.No.105060/2024 is referred to as writ petitioner. 5. Brief facts leading to the filing of these two petitions are that on 15.03.2010, a complaint came to be registered in Cr.No.17/2009–10 (FOC.139/2009–10) by the Ankola P.S, for the offences punishable under Section 2 (7)(b)(iv), 62, 24 , 80 of the Karnataka Forest Act, 1963 and Rule 143 and 162 of the Karnataka Forest Rules, 1969, against the conservator of Belekeri Port, for illegal stock of iron ore in huge quantity, which could not be ascertained at that time and the FIR was transmitted to the JMFC, Ankola. 5.1 On 20.03.2010, approximately 5 lakhs Metric tones (for short 'MT') of iron ore, then worth Rs.150 Crores was seized, on as-is where-is basis at Belekeri Port, which was illegally transported from Ballari, Chitradurga and other areas and stored in the port area. It was handed over to the port conservator, Belekeri and PF was submitted to the JMFC Ankola, which permitted it to retain the same until further orders. 5.2 The JMFC Ankola rejected applications filed under Section 451 Cr.P.C seeking interim custody on the following ground that they have failed to produce the ownership documents. "1. Greentex Mining Industries Limited Bangalore on 7-4-2010 as not pressed. 2. 5.2 The JMFC Ankola rejected applications filed under Section 451 Cr.P.C seeking interim custody on the following ground that they have failed to produce the ownership documents. "1. Greentex Mining Industries Limited Bangalore on 7-4-2010 as not pressed. 2. M/s Doddannawar Brothers, Belagavi & 3. ILC Industries Limited, Hospet on 12-4-2010 4. P.K.Pounraj on 12-8-2011." 4.3 Though the application filed by Sri Venkateswara transport was allowed, it could not be released as the same failed to produce the valid documents. 5.4 However, during the investigation as evident from the stock statements furnished by the four licensed stevedores, it was found from the port conservator that the actual iron ore seized on 20.03.2010 was 8,05,991.083 MTs, belonging to various exporters/parties. However, prior to 02.06.2010, most of the seized iron ore has been exported out of port area. On 02.06.2010, the investigating officer found majority quantity of seized iron ore missing and hardly approximately 2.00 lakh MTs of iron ore was visibly found in the port area and remaining quantity of approximately 6.00 lakhs MTs of seized iron ore has been stolen away/exported from the port area. This was brought to the notice of the JMFC Ankola, who was pleased to issue order dated 05.06.2010 to file FIR with the jurisdictional police. 5.5 Accordingly, the investigating officer/ACF lodged complaint in Cr.No.189/2010 of Ankola PS for the offence punishable under Section 406 IPC against the following 12 persons/entities. "1. Sri.Mahesh Biley, Port Conservator, Belekeri Port. 2. M/s Shree Mallikarjun Shipping Pvt. Ltd. 3. M/s Adani Enterprises Limited. 4. M/s Salgaocar Mining Industries Pvt. Ltd. 5. M/s ILC Industries Limited. 6. M/s AshapuraMinechem Limited. 7. M/s PJS Overseas Limited. 8. M/s Doddanavar Brothers. 9. M/s Shir.Lal Mahal Limited. 10. M/s Swastik Steel (Hospet) Pvt Ltd. 11. M/s Lakshmi Venkateshwara Minerals. 12. M/s Metachem Manufacturing Company Pvt Ltd." 5.6 The learned JMFC Ankola rejected the applications filed by various exporters under Section 451 and 457 Cr.P.C seeking interim custody of the various quantities of the iron ore and WP.Nos 14551/2010, 14552/2010, 1574/2010, 15743/2010, 15744/2010, 15745-46/2010, 15756/2010 and 16055/2010 filed against the said order came to be dismissed by this Court, also upholding the locus standi of the forest officials to seize the iron ore by various exporters. 5.7 During investigation, approximately an extent of 28811.5 cubic metric of illegally stocked iron ore worth approximately Rs.24 Crores, which was stocked in the port area was seized through mahazar dated 08.02.2011 in as-is where-is basis. It was handed over to the custody of RFO, Ankola and reported to the jurisdiction Magistrate and it was permitted to be retained until further orders. 5.8 In the meanwhile, as per the orders of this Court and GO.No.OE 91 CID, Bengaluru dated 28.09.2011, the investigation of Cr.No.189/2010 was handed over to CID. However, in WP(Civil)No.562/2009, based on the report of the Central Empowerment Committee, the Hon’ble Supreme Court ordered registering of FIR and investigate the illegal export of 50.79 MTs of iron ore from the forest area of Karnataka from 01.01.2009 to 31.05.2010 and illegal transport to Belekeri port and from there illegal export of the same, by the CBI and stayed the further proceedings in Cr.No.189/2010 and directed the CID Karnataka to handover all the records to the CBI. On 16.09.2013, the Hon’ble Supreme Court further ordered and permitted CBI to register criminal cases against those exporters who are enquired into in the preliminary enquiry and who had exported iron ore of more than 50,000 MTs without valid permit and as recommended by the Central Empowered Committee in its report dated 05.09.2012. 5.9 However, in the meanwhile CID had filed 39 charge sheets before JMFC Ankola. 5.10 In some cases, this Court as well as the Hon’ble Supreme Court directed the parties to approach the jurisdictional criminal Courts to claim properties on ‘existence and ownership basis’. Accordingly, some of the parties approached CBI Court, Bengaluru, but their claim petitions were rejected for want of jurisdiction. 5.11 In W.P.No.26558/2016, the writ petitioner succeeded. However, Contempt Petition No.1618/2017, arising out of the said petition came to be dismissed and Review Petition No.376/2017 filed by the State was allowed and thereby all the connected petitions were restored. W.P.No.18941/2016 filed by M/s. Vedanta Ltd came to be allowed by Division Bench of this Court, directing release of iron ore. However the Supreme Court in Crl.A.Nos.348– 356/2018 set aside the said order and directed the parties to approach jurisdictional CBI Court. Similarly, the other writ petitions came to be dismissed by this Court with a direction to the parties to approach the jurisdictional Criminal Court. However the Supreme Court in Crl.A.Nos.348– 356/2018 set aside the said order and directed the parties to approach jurisdictional CBI Court. Similarly, the other writ petitions came to be dismissed by this Court with a direction to the parties to approach the jurisdictional Criminal Court. After detailed investigation, CBI filed charge sheet against the accused persons before the CBI Court. Out of them, some of the cases were transferred to peoples representatives Court for MLAs and MPs. 6. Before the trial Court, the State filed application under Section 451 r/w 457 C.P.C seeking interim release of the available iron ore with a permission to conduct e-auction and to deposit the amount with the trial Court urging the following reasons: a. The Belekeri port is a minor port under Government of Karnataka. Department of PWD is interested to open the Belekeri Port for commercial operation and they are keen to develop this port for economic purpose from the point of State revenue. The shipping activities are obstructed because of dumping of Iron ore causing revenue loss of about Rs.15–20 Crores per annum. b. Significant amount is being spent on protection of the iron ore heaps by way of covering with Tarpoulin every year. Huge expenditure incurred for protection of iron ore heaps at Belekeri port, which is under the custody of Forest Department by covering tarpaulin. From 2012–13 to 2018–19, already a sum of Rs.40,68,911 is spent for protection of the iron ore. C. Since nine years the huge stock of iron ore is exposed to weathering wind and heavy rain. There is possibility of erosion, which may lead to loss of the material. The quality of the Iron ore is diminishing. The present market value has also gone down considerably. d. There are also issues of ground rent where the seize material is stored, which need to be resolved between the Port Department and Forest Department. e. It is the duty of Karnataka Government to clear the vast area where the Iron ore is stocked since several years, to maintain pollution free environment in the Port as well as its surrounding areas by removing it. F. Even though the seized iron ore is forest produce belonging to the Government, in case any party is interested in claiming the same, the Hon’ble Court may consider it by giving opportunity to the State Government and pass final order. F. Even though the seized iron ore is forest produce belonging to the Government, in case any party is interested in claiming the same, the Hon’ble Court may consider it by giving opportunity to the State Government and pass final order. As per the order of Hon’ble Supreme Court, the parties are required to claim the property on 'existence and ownership basis'. Hence, the petition for granting permission to the State Government to release through E-auction under the supervision of Monitoring Committee constituted by the Hon’ble Supreme Court and to deposit the amount in the account of the Hon’ble Court, which may be directed to be kept in Fixed Deposit to fetch interest, till passing of the final order. 6.1 The State Government undertakes to follow the following procedure, in order to make the entire proceedings transparent. 1. The auction of property would be conducted through e-tender only after measurement of the quality and quantity of each of the 56 iron ore heaps separately through Mines and Geology Department. 2. The e-auction would be conducted after taking samples of each of the 56 iron ore heaps separately, for which Panchnama would be drawn. 3. After the e-auction process is over the disposal of the iron ore be covered by videography. 4. The auction amount would be deposited immediately with the Court in Cr.No.FIR.17/2009–10 5. The DGM would keep records of the exact quantity of iron ore transported by the successful bidder of the property. 7. Respondents filed objections to the petition filed by the State Government. 8. Vide order dated 05.10.2020, the trial Court rejected the application filed by the State. 9. Aggrieved by the same, the State approached the Sessions Court in Crl.R.P.No.2/2021. Vide order dated 20.11.2021, the Sessions Court also refused to grant interim custody of the seized iron ore for disposal in accordance with law. 10. Aggrieved by the same, the State has come up with the present petition contending that orders passed by the trial Court as well as the Sessions Court are contrary to the law, facts and documents on record and as such not sustainable. They are erroneous, illegal and arbitrary. The Courts below have failed to understand the proposition laid and observations made by the Hon’ble High Court as well as the Supreme Court and also the fact that some of the claimants have given no objections for conducting e-auction by the State. They are erroneous, illegal and arbitrary. The Courts below have failed to understand the proposition laid and observations made by the Hon’ble High Court as well as the Supreme Court and also the fact that some of the claimants have given no objections for conducting e-auction by the State. They have also failed to appreciate the fact that despite of notice majority of the parties have not shown any interest making a claim. The Courts below have failed to appreciate the fact that the best option available is to e- auction the seized iron ore under the supervision of Monitoring Committee constituted by the Hon’ble Supreme Court and it would protect the interest of all the parties. The Courts below have failed to assign proper reasons for rejecting the request of the State. 11. Similar applications were filed by Gimpex Ltd, M/s Sesa Goa Ltd, M/s Rajmahal Silks and M/s Doddannavar brothers, who are the petitioners seeking interim custody of the seized iron ore said to be belonging to them. 12. Writ Petitioner filed application under Section 452 and 457 Cr.P.C with a prayer to release the iron ore at MC-9 and MC-11 to its custody for shipment to any destination of purchaser without insisting on any further payment of royalty, as already royalty is paid. 13. In support of the application, the writ petitioner has contended that it is having a valid permit for mining and transport permit for transporting the iron ore. As on 20.03.2010 when the Mahazar was drawn 48,917.48 MTs of iron ore belonging to the petitioner was lying at Belekeri Port in the plots belonging to Sri Mallikarjuna shipping Pvt Ltd. It was also seized. As per the direction of the Hon’ble Supreme Court, when several cases were registered against many of the Exporters, Cr.No.RC.(E)7/2013 was registered against the writ petitioner and its Directors on 03.02.2014. 13.1 During the investigation, the CBI has addressed a letter dated 09.05.2014 to the Port Conservator, Karwar Port, requesting the officers to allow the representatives of writ petitioner to enter the port area with the required men and material and undertake the preservation activity by covering the iron ore belonging to them and create bunding. 13.1 During the investigation, the CBI has addressed a letter dated 09.05.2014 to the Port Conservator, Karwar Port, requesting the officers to allow the representatives of writ petitioner to enter the port area with the required men and material and undertake the preservation activity by covering the iron ore belonging to them and create bunding. Accordingly, the Port Conservator of Belekeri Port addressed a letter dated 22.05.2014 to the writ petitioner, permitting it to cover the iron ore belonging to it with tarpaulin and create bunding around the covered iron ore stacks belonging to it, which was later marked as MC-9 and MC-11. 13.2 After detailed investigation, the CBI has filed Final Report under Section 173 of Cr.P.C in Cr.No.RC.7(E)/2013, CBI/EOW/CHENNAI, stating that no offences are committed by the writ petitioner and its Directors. The special CBI Court vide order dated 27.05.2017, accepted the Final Report. Consequently, the writ petitioner is the owner of 48,917.48 MTs of iron ore marked as MC-9 and MC-11. They have already submitted the ownership documents and hence the petition for release of the same. 14. The trial Court vide order dated 23.09.2023 rejected all the applications filed by the 4 claimants. 15. Aggrieved by the same, the writ petitioner has filed the petition contending that the impugned order is illegal, arbitrary and against the principles of natural justice. The trial Court has failed to appreciate the fact that CBI has filed Final Report stating that no offences are made out against the writ petitioner and its Directors who are accused in the said case and criminal case was registered against them by mistake of fact. The Final Report also state that there are documents to establish that the iron ore stacks bearing Nos. MC-9 and MC-11 belong to the writ petitioner and they have already paid the necessary royalty. The trial Court has also failed to note that writ petitioner has been unnecessarily victimized and in addition to suffering huge loss, it has also suffered its good reputation in the business circle. The release of iron ore belonging to the petitioner would not come in the way of proceeding against the other accused as there is no rival claim with regard to it. Hence, it is a fit case for interference by this Court, and hence the petition. 16. Heard arguments of both sides and perused the record. 17. The release of iron ore belonging to the petitioner would not come in the way of proceeding against the other accused as there is no rival claim with regard to it. Hence, it is a fit case for interference by this Court, and hence the petition. 16. Heard arguments of both sides and perused the record. 17. The undisputed facts are that on 15.03.2010, a complaint came to be registered in Cr.No.17/2009-10 (FOC.139/2009-10) against the conservator of Belekeri Port for illegal stock of huge quantity of iron ore which could not be accounted for. Consequent upon the registering of said case on 20.03.2010, approximately 5 lakhs metric tones of iron ore was seized on as-is where-is basis. However, from the stock statements furnished by the 4 licensed stevedores it was found that the actual weighment of the seized iron ore is 8,05,991.083 MTs belonging to various exporters/parties prior to 02.06.2010. On 02.06.2010, the investigating officer found majority quantity of iron ore missing and hardly approximate 2 lakhs MT of iron ore was visibly found. After this was brought to the notice of JMFC., Ankola, as per order dated 05.06.2010 of the said Court, FIR was registered in Cr.No.189/2010 of Ankola P.S. for the offence punishable under Section 406 IPC . 18. Initially on the orders of this Court, the investigation was transferred to CID and subsequently, based on the report of the Central Empowered Committee and on the directions of the Hon'ble Supreme Court, investigation was handed over to the CBI. However, before investigation would be taken over by the CBI, CID had filed 39 charge sheets against the erring parties before the JMFC., Ankola. 19. During the investigation, the CBI has allowed the representative of writ petitioner to enter the port area with men and material and undertake preservation activity by covering the iron ore belonging to them and create bunding. Accordingly, vide letter dated 22.05.2014, the conservator of Belekeri Port permitted the writ petitioner to cover the iron ore belonging to it with tarpaulin and create bunding around the covered iron ore stacks which was later marked as MC-9 and MC-11. After detailed investigation in case of writ petitioner final report was filed stating that it was holding mining lease ML.2394 and ML.2395. After detailed investigation in case of writ petitioner final report was filed stating that it was holding mining lease ML.2394 and ML.2395. During October 2009 till May 2010 the firm has obtained MDPs and Forest OMs for 3,75,326 MTs of iron ore from DMG, Bagalkot and DCF, Bagalkot and paid royalty for quantity of iron ore transported in excess to the tune of 67,970 MTs consolidately to DMG, Bagalkot and DCF, Bagalkot. Therefore, the total quantity moved with permits is 443296 MTs (375326 + 67970). The firm purchased 17926.48 MTs of iron ore from HG Range Gowda, Hospet under two valid MDPs. At the end of the season, the firm purchased 6240 MTs of iron ore from Metachem Manufacturing company inside the Belekeri Port as detailed in the charge sheet. Thus, the firm had in total 467463.48 MTs (443296 + 17926.48 + 6240) of iron ore at Belekeri. 20. It is further stated in the charge sheet that the investigation revealed that the firm had a stock of iron ore with valid permits to the tune of 461222.48 MTs (443296 + 17926.48) and between October 2009 to May 2010, the firm has exported 418546 MTs of iron ore to China from Belekeri Port. In view of the above, it is found, the firm had balance stock of 42677.48 MTs (461222.48 - 418546) after the last shipment of 9194 MTs described in the charge sheet. After the arrival of stock of Metachem, the balance iron ore was around 48917.48 MTs (42677.48 + 6240). The iron ore procured along with other remaining stock of iron ore is lying in the port of Belekeri after ban of export of iron ore. 21. It is further stated in the charge sheet that the investigation reveal that the allegations that the writ petitioner represented by its partner exported 48854 MTs of iron ore during 2008-09 and 6240 MTs of iron ore during 2009-10 totaling to 55094 MTs without MDP and OM are not made out. The investigation also reveal that the involvement of public servant were not made out and it is a case of mistake of fact and accordingly, final report is filed. 22. It is pertinent to note that similar final reports were filed in respect of M/s Satya Granites Represented by Proprietor P.K. Pounraj , Vedanta Limited, M/s Rajamahal Silks and M/s Gimpex Limited . 22. It is pertinent to note that similar final reports were filed in respect of M/s Satya Granites Represented by Proprietor P.K. Pounraj , Vedanta Limited, M/s Rajamahal Silks and M/s Gimpex Limited . Their applications for release of the iron ore belonging to them was rejected by the trial Court and the criminal petitions in Crl.Nos.7582/2018 and 7827/2018 and W.P.Nos.107057 and 107387/2023 respectively filed by them came to be allowed by this Court ordering for release of the iron ore to their custody. 23. Similarly, now Writ petitioner is seeking release of 48917.48 MTs of iron ore in stack Nos.MC-9 and MC-11 at Belekeri Port to its custody and grant permission to transfer or export the same. On the other hand the State is seeking permission to release the available seized iron ore as reported on 20.03.2010 and 09.02.2011 and to conduct e- auction by the Karnataka Government through e-tender under the supervision of Monitoring Committee constituted by Hon'ble Supreme Court. 24. Even though as per the request of M/s Satya Granites Represented by Proprietor P.K. Pounraj , Vedanta Limited, M/s Rajamahal Silks and M/s Gimpex Limited , the iron ore belonging to them were ordered to be released to their custody and as directed by the Hon'ble Supreme Court that the claimants are at liberty to file appropriate applications before the trial Court for release of seized iron ore by establishing its existence and its ownership over the same, it appears majority of them are not able to establish their existence and their ownership and consequently, still large quantity of seized iron ore is available. As rightly contended by the State in their application for release of the same, unnecessary expenses is incurred by the State for protection of iron ore heap. Since 9 years, the huge stock of iron ore is exposed to weathering wind and heavy rain leading to erosion and the quality of iron ore is also diminishing resulting the market value going down considerably. The ground rent issues are also involved. It is also coming in the way of the State maintaining pollusion free environment in the port as well as in the surrounding areas. 25. Since Belekeri port is a minor port the huge stock of iron ore is coming in the way of developing it for commercial operation. The ground rent issues are also involved. It is also coming in the way of the State maintaining pollusion free environment in the port as well as in the surrounding areas. 25. Since Belekeri port is a minor port the huge stock of iron ore is coming in the way of developing it for commercial operation. The shipping activities are also obstructed because of dumping of iron ore causing heavy revenue loss. In the above facts and circumstances it is in the interest of all parties concerned to dispose off the same through e-auction under the supervision of Central Monitoring Committee constituted by the Hon'ble Supreme Court and if the proceeds are deposited with the Court to be kept in Fixed Deposit, the party who is having a stake may claim the proportionate amount after establishing its existence and ownership. 26. So far as the iron ore at stack No.MC-9 and MC- 11 are concerned, writ petitioner is entitled for custody of the same. 27. In the result the petitions deserves to be allowed and accordingly, the following: ORDER I. W.P.No.105060/2024 is allowed. (i) The impugned order dated 23.09.2023 in Ankola Forest Crime No.17/2009-10 (FOC No.189/2009- 10), on the file of Senior Civil Judge and JMFC., Ankola rejecting I.A.No.12 filed under Section 451 r/w 457 of Cr.P.C is set aside. (ii) The iron ore in stack No.MC-9 and MC-11 at Belekeri port, Karwar District in Ankola Forest Crime No.17/2009-10 and (FOC.No.189/2009- 10) is ordered to be released to the custody of writ petitioner with the following conditions: a) The Assistant Conservator of Forest, Ankola, Uttara Kannada District shall determine the actual quantity of iron ore available which was stacked by the petitioners and also determine the value of the iron ore and upon determination, the Range Forest Officer shall release the said quantity of iron ore to the writ petitioner with one surety each and on executing of indemnity bond by the with petitioner for the value determined. b) Photographs and videographs of the same shall be taken for using the same as evidence at the trial. c) The said exercise shall be concluded within 8 weeks from the date of receipt of certified copy of this order. II. Crl.P.No.100029/2013 filed by the State under Section 482 of Cr.P.C is allowed in part. b) Photographs and videographs of the same shall be taken for using the same as evidence at the trial. c) The said exercise shall be concluded within 8 weeks from the date of receipt of certified copy of this order. II. Crl.P.No.100029/2013 filed by the State under Section 482 of Cr.P.C is allowed in part. (i) The impugned order dated 05.10.2020 in Ankola Forest Cr.No.17/2009-10 (FOC No.139/2009-10) on the file of Senior Civil Judge and JMFC., Ankola and order dated 20.11.2021 in Crl.RP.No.2/2021 on the file of II Addl.District and Sessions Judge, U.K.Karwar are set aside. (ii) Consequently, the application filed under Section 451 and 457 Cr.P.C by the State is allowed in part. (iii) The available iron ore as reported on 20.03.2010 and 09.10.2011, minus stack No.MC-9 and MC-11, is ordered to be released to the custody of State Government with a direction to conduct e-auction through e-tender under the supervision of Central Monitoring Committee constituted by the Hon'ble Supreme Court and to deposit the sale proceeds into the account of the trial Court till passing of the final order with the following conditions: 1) The auction of the property shall be conducted through e-tender only after measurement of the quality and quantity of each of the 56 iron ore heaps separately through the Mines and Geology Department minus stack No.MC-9 and MC-11. 2) The e-auction should be conducted after taking samples of each of the iron ore heaps separately for which panchanama shall be drawn. 3) After e-auction process is over the disposal of iron ore shall be covered by videography. 4) The auction amount shall be deposited immediately with the Court in Cr.No.FIR.17/2009-10. The trial Court shall keep the said amount in Fixed Deposit in any Nationalized Bank 5) The DGM shall keep the record of exact quantity of iron ore transported by the successful bidder of the property. 6) The entire exercise shall be conducted as early as possible without wasting time. (iv) The Registry is directed to send a copy of this order to the trial Court forthwith.