Chennai, Oct 28 (IANS): In a major embarrassment to Tamil Nadu's ruling AIADMK, the Madras High Court Tuesday fined the state government Rs.10,000 for delaying the appointment of IAS officer U.Sagayam to probe the granite scam.

Hearing the review petition filed by the Tamil Nadu government, the court ordered the government to relieve Sagayam from his current position and appoint him as the court nominated special commissioner to probe the scam.

On Sep 11, the court appointed Sagayam to probe the multi-crore illegal granite quarrying in Tamil Nadu.

As a district collector at Madurai, Sagayam had made a detailed report about illegal quarrying and submitted his report to the government, estimating the loss of revenue to the state at Rs.16,000 crore.

Later he was transferred here.

Hearing a case filed by a social activist, the court ordered Sagayam to be the special officer to probe the granite mining contracts given to companies.

The court then said Sagayam would visit and inspect the mines and submit a report and also ordered the Enforcement Directorate (ED) to start proceedings against the illegal mine owners.

The state government had appealed against the high court's order to the Supreme Court. The apex court had dismissed the state's petition.