Karnataka’s Sand Mafia Draining ₹400 Crore Annually, Says CM Adviser Basavaraj Rayareddy

Karnataka Chief Minister Siddaramaiah's economic adviser, Basavaraj Rayareddy, has launched a scathing indictment against the state's entrenched sand mafia and the officials purportedly protecting them, estimating an annual revenue loss exceeding Rs 400 crore in unpaid royalties. In a strongly worded letter to the Chief Minister dated October 20, 2025, the former housing minister and Yelburga MLA detailed a pervasive nexus of corruption that is systematically depleting the state's natural resources.

Rayareddy likened the inefficiencies in royalty collection to the successful mechanisms for income tax and GST, questioning why a similar transparent system cannot be implemented for sand. He proposed a direct payment model where homeowners remit royalties straight to the government for construction sand, effectively sidelining intermediaries and dismantling the mafia's stranglehold. "If we can collect income tax and GST efficiently, why not royalty on sand," he emphasized, highlighting the simplicity of the suggested reform.

The adviser accused the Mines & Geology Department and local police of facilitating illegal operations through routine bribes and illicit payments, enabling sand smuggling to flourish openly. He cited rampant activity in areas like Hirehalla along the Tungabhadra River, where 100-150 truckloads of sand are illegally transported daily to neighboring districts from Koppal, involving over 200 individuals in the syndicate. Similar issues plague granite mining in Budagumpa, Kerehalli, and Bandi Harlapur, prompting recent site inspections and case registrations by vigilant officials following complaints.

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To combat this, Rayareddy urged immediate transfers for long-stationed officials to curb entrenched bribery networks and called for punitive measures against implicated personnel. He advocated forming district-level task forces under deputy commissioners to enforce compliance and intensify monitoring. Responding to the allegations, Mines and Geology Minister S.S. Mallikarjun assured that a comprehensive strategy for the sand sector is in development, mirroring approaches in other industries.

Industry voices echoed Rayareddy's concerns. Ravindra Shetty of the Karnataka Association for Quarries and Crushers referenced a prior Public Accounts Committee report, chaired by current Revenue Minister Krishna Byre Gowda, which estimated staggering losses of Rs 18,000-20,000 crore from illegal mining of sand, laterite, and stone during the previous BJP administration. Rayareddy plans to brief Urban Development Minister B.S. Suresha, Deputy Chief Minister D.K. Shivakumar, and others on the matter, pushing for a unified governmental offensive.

This exposé arrives at a critical juncture, as Karnataka grapples with infrastructure demands and environmental safeguards. The sand mafia's operations not only erode state coffers but also threaten river ecosystems and sustainable development. With Rayareddy's blueprint for reform on the table, the government faces mounting pressure to act decisively, potentially reshaping resource management and restoring public trust in oversight mechanisms.

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