Bengaluru: The Karnataka Government has given legal sanction to seize and confiscate assets derived from illegal mining and proceeds of crime, with the Governor formally approving the Karnataka Illegal Mining and Proceeds of Crime Confiscation and Recovery Commissioner Appointment Act, 2025. The law came into effect on September 9, 2025, Law and Parliamentary Affairs Minister H.K. Patil announced in Gadag.
Appointment of Recovery Commissioner
Patil explained that the law provides for the appointment of a Recovery Commissioner, empowered to identify, seize, and confiscate properties acquired through illegal mining. The move comes after months of deliberation in the Cabinet and both Houses of the Legislature.
The state noted that illegal mining involves contractors, transporters, exporters, stockists, buyers, and intermediaries, contributing to organized crime and systematic collusion. To address this, the Cabinet formed a sub-committee on July 5, 2025, which submitted its report on August 13, 2025 along with a draft bill. The bill was unanimously passed by the Cabinet and later approved in the Assembly on August 21 and the Council on August 22.
Governor’s Assent and Impact
With the Governor’s assent on September 9, the Act is now law. Patil termed it a historic decision aimed at restoring economic discipline in Karnataka and ensuring that assets looted from the state are brought back to its people.
“This Act fulfills the government’s promise to take the toughest measures against illegal mining and to return the wealth of Karnataka to its rightful owners — the people of Karnataka,” Patil said.
Background on Illegal Mining
The Minister recalled that, under the special guidance of the Chief Minister, the government has been working over the past one and a half months to bring strict measures against the illegal mining scandal that has plagued the state.
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