Although state Steel and Mines Minister Raghunath Mohanty described the allegation as baseless, the government a day later ordered the vigilance probe, after Singhdeo produced documentary evidences of the illegal mining.
The probe found evidence of illegal mining in the area, with the complicity of several government officials.
Vigilance Department Director Anup Kumar Patnaik told IANS Sunday that a team of 20 to 25 officers, conducting the inquiry, had examined papers, gone to the offices of mining and forest departments and inspected the spots.
'We found evidence of illegal mining. The area where the mining was going on was not leased out to anybody. The local officials of the forest and mining department knew that the illegal mining was going on but they did not take any steps to stop it,' Patnaik said.