Siddaramaiah’s Economic Advisor Alleges Officials Backing Sand Mafia, Says Karnataka Lost ₹400 Crore

In a major revelation that could stir political and administrative controversy, Basavaraj Rayareddy, Economic Advisor to Karnataka Chief Minister Siddaramaiah, has alleged that several government officials are colluding with the state’s sand mafia, resulting in an estimated ₹400-crore annual loss to the exchequer.

In a detailed letter to Chief Minister Siddaramaiah, Rayareddy accused corrupt officials of aiding illegal sand mining operations and urged immediate action against those involved in what he called “the systematic looting of Karnataka’s natural resources.”

“Corrupt officials and the sand mafia are hand in glove, looting the state’s natural wealth. If we can efficiently collect income tax and GST, why can’t we collect royalty on sand?”
Rayareddy wrote in his letter to the Chief Minister.

💸 Rayareddy Flags ₹400-Crore Loss to State

According to Rayareddy’s complaint, Karnataka has lost over ₹400 crore in royalty revenue due to illegal sand and jellystone transportation. He claimed that 100 to 150 truckloads of material are being smuggled daily from regions located around 85 km from the Tungabhadra River.

“Nearly 200 people are involved in this racket. Officials from the Department of Mines and Geology are enabling the trade by turning a blind eye,” he alleged.

Rayareddy named over 10 officials, including Senior Geologist Pushpalatha, accusing them of remaining in the same postings for more than a decade, creating an entrenched network that protects illegal mining interests.

⚙️ Advises Direct Royalty Collection to Stop Middlemen

To curb the nexus, Rayareddy recommended a transparent digital payment model under which homeowners pay sand royalty directly to the government, eliminating the need for intermediaries.

“If the government directly handles royalty payments, illegal mining can be curbed, and transparency restored,” he said, urging a task force headed by the District Collector to oversee sand transportation and royalty enforcement.

🚨 Proposes State-Level Task Force

Rayareddy has proposed the formation of a special task force headed by the Deputy Commissioner to monitor sand extraction and transportation, supported by regular district-level audits.

He also demanded immediate transfers of officers suspected of aiding the mafia and a review of departmental postings to prevent long-term tenure-based corruption.

🏛️ BJP Calls It ‘Organised Loot’

The allegations have triggered sharp political reactions.
BJP leader R. Ashoka accused the Congress government of shielding the sand mafia, saying the revelations expose “organised loot happening under government protection.”

“CM’s own advisor exposes a ₹400-crore sand mafia scam! The truth can no longer be hidden,” Ashoka posted on X (formerly Twitter).

He alleged that more than 200 people were operating in the illegal network and demanded to know which ministers and MLAs were protecting the accused.

“This is not governance, this is organised loot. The people of Karnataka deserve to know where the ₹400 crore is going,” he added.

⚖️ Political Pressure Mounts on Siddaramaiah Government

The letter from the Chief Minister’s own advisor has put the Siddaramaiah government in a difficult position, with opposition parties calling for a CBI-led probe into the allegations.

Rayareddy, a former Housing Minister and Yelburga MLA, has said he will raise the issue with key ministers, including Deputy Chief Minister D.K. Shivakumar, Urban Development Minister B.S. Suresh, and Mines and Geology Minister S.S. Mallikarjun, urging a statewide crackdown on the sand mafia.

Political observers say this public statement from an insider underscores growing concerns about illegal mining operations and administrative corruption across the state’s river belts.

📊 At a Glance: Karnataka Sand Mafia Allegations