Mining pit 50 m from the Rs 500 crore Tillari Irrigation Canal Passage was operating without renewal or environmental clearance. The canal is expected to provide water for irrigating large parts of North Goa district. Six mines were operating close to the Selaulim dam, which provides water to South Goa. The mining lease of one of the six companies expired in November 2007.

The operator extracts iron ore without clearances under the Forest Conservation Act or the Wildlife Protection Act. Even the director of mines and even the Central government had refused licence renewal to the company earlier. In Pernem in North Goa, MLA Jitendra Deshprabhu was also indicted for illegal iron ore mining.