W.P. (C) 114/2014
Writ against Illegal Mining in Odisha
In the context of a public outcry over massive mining scandals in various parts of the country, the Government of India had set up the Justice M. B. Shah Commission of Inquiry in November 2010 to inquire into the illegal mining, trade and transportation of iron ore and manganese ore, identify the deficiencies in the systems of management and regulation, and assess their overall impact in terms of environmental damage, prejudice to livelihoods and other rights of the local populations, and the financial losses caused to the Central and State Governments. The Commission’s reports on mining in Goa, (March-April 2012), brought to light massive illegalities in the extraction of iron and manganese ores. The Commission next submitted a 5 volume report on the mining sector in Orissa in July 2013 and sought a further extension of one year to complete its inquiry in other major mining areas. The Government, however, refused to extend its term beyond October 2013. Before it was wound up, the Commission submitted its report on mining in the state of Jharkhand (4 volumes), along with the second report on Orissa (3 volumes) and the third report on Goa. The Commission’s first report on Orissa, documents the reckless plunder of the nation’s mineral wealth and the flagrant violation of the laws relating to mining and environment protection and the fundamental rights of the local populations. The Government has resisted the demands for placing the Orissa report in the public domain. It has also failed to take any action on the findings of the report, or to lay it in Parliament along with an Action Taken Report (ATR) within six months of its submission as per the prescribed procedure. Common Cause has filed before the apex court, a writ on the substantive issues highlighted in the Orissa reports, to force the hand of the UOI and to seek urgent judicial intervention in the matter.
Following the filing of the petition, the operation of 26 illegal mines was stayed. The court in 2016 had directed the states to consider applications of miners filed before January 2015 or 12 months before the expiry of the lease. The court had held that mining leases will not lapse automatically unless the state governments hear the companies and pass orders to that effect.
The Supreme Court on August 2, 2017 imposed a hundred percent penalty on mining companies indulging in illegal mining on account of lack of forest and environment clearances, mining outside lease/permitted area and for mining in excess of what has been allowed. The bench headed by Justice Lokur directed that an Expert Committee be constituted and presided over by a retired judge for identifying the lapses that have occurred over the years that have enabled rampant illegal and unlawful mining in Odisha and to recommend preventive measures not only to the State of Odisha but generally to all other States where mining activities are proceeding on a large scale. The Union of India was directed to have a fresh look at the National Mineral Policy, 2008 which is almost a decade old, particularly with regard to conservation and mineral development and that the exercise should be completed by 31st December, 2017.
On August 28, 2017, the Apex Court listed the matter on 24th October 2017, for hearing the applications filed by Jindal Steel and Power Limited, Sarda Mines Pvt. Ltd., Essel Mining And Industries Ltd. And Rungta Group of Companies. On September 14, 2017, it was ordered to renew the FDR further, for a period of 91 days from the date of its maturity.
On October 24, 2017, various Interlocutory Applications filed in the matter were dismissed. Further, in I.A no. 90729/2017 the court ordered that the CEC as well as the State Government should sit together to iron out all anomalies so that the payments are made where the computation is completed on or before November 30, 2017 in accordance with the judgment of this Court.
On November 11, 2017, a committee of Justice G.S. Singhvi and Justice Anil Dave was requested to submit their report within a period of 12 weeks from the date of the first hearing. The report of the Committee was asked to be placed before this Court for consideration as soon as the same would be filed in the Registry of this Court. The court ordered that some of the writ petitions filed by some of the lessees as well as by the State of Odisha in the High Court of Odisha will be rendered in fructuous and that the State of Odisha may take appropriate steps in that regard.
On December 2017, the court admitted that royalty was paid on the fines. It was observed that the extraction/cleaning clearly amounts to a mining operation relating to iron ore on which royalty is paid by the applicant and the objections of the Jindal Steel and Power Limited to the CEC Report were disposed of.
On January 30, 2018 in IA NO. 9110/2018 filed by M/s. Essel Mining & Industries Limited requested for condonation of delay in making the payment. Learned counsel for the applicant submitted that since the time was short, there has been a few days delay in depositing the amount. The delay was condoned. IA Nos. 7253 & 7256/2018 were disposed of and the delay in making the deposit by the applicant was condoned subject to payment of interest at the rate of 12% per annum for the period of 11 days with the interest component to be paid within two weeks.
On February 15, 2018, the applicant in IA Nos. 9110/2018 & 9117/2018 stated that as per the judgment of this Court dated 2nd August, 2017, the amount due along with interest with regard to the JillingLangalotta, Koira and Kasia mines have been paid. Both the applications were disposed of with the direction to the Odisha government to permit the applicant to resume mining. IA NO. 18926/2018 filed by M/S Patnaik Minerals Pvt. Ltd stated that there was a delay of 31 days in making the payment due to the State Government but the entire amount has been paid with interest. The court condoned the delay and disposed of the application. IA No. 22301/2018 was withdrawn.
On February 23, 2018, an Application was moved by the amicus to bring on record the fact that perhaps there is an oversight and the name of M/s Serajuddin & Co. was left out for consideration in the judgment and order dated August 2, 2017 as being one of the Mining Lease Holders who may be in violation of Rule 37 and Rule 38 of the Mineral Concession Rules, 1960.
I.A. No. 21415/2018 was moved by M/s Serajuddin & Co. for permission to continue mining. The court permitted the applicant to continue regular mining since the applicant and the state stated that all the payments had been made with interest, hence the application was disposed of. In I.A. No. 27229 and 27242 filed by Mr. Birat Chandra Dagara delay in making the payment was condoned subject to payment of interest at 12% per annum. Learned counsel for the State of Odisha said that the payment has been made along with interest. The application was disposed of.
On March 13, 2018, the Committee requested for an extension by ten weeks to complete the enquiry and it was allowed.
On March 21, 2018, the FDR was ordered to be renewed for a further period of one year.
On April 3, 2018, IA No. 43947/2018 was ordered to be listed after the report from the CEC is received and the applicant was allowed to restart mining, since the payment had been made in terms of Rule 49 of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016. Further on April 9, 2018, it was clarified that there is no prohibition against re-starting mining notwithstanding the examination of the application filed by the applicant by the CEC.
On May 11, 2018, IA NO. 108236/2017 has been disposed of. The Steel Authority of India Ltd. may operationalize the mining lease, subject to confirmation from the State of Odisha., which is to be verified by the learned counsel for the State of Odisha within one week.
On July 24, 2018, the state of Odisha was directed to file an affidavit within two weeks on IA No. 99347/2018. IA No.86784/2018 was dismissed.
On August 9, 2018, IA Nos. 110569 & 110570/2018 were dismissed. The learned counsel for the applicant(s) said they would like to take instructions whether the amount can be deposited with interest without prejudice.
On September 6, 2018, Sr. Advocate Mr. Gopal Subramanium presented some suggestions, framed in consultation with some others advocates and they were accepted by Mr. Prashant Bhushan, learned counsel for the petitioner and by the learned Amicus.
The SC has ordered that the amount of Rs.237.05 crores lying in the Ministry along with interest should be handed over to the Special Purpose Vehicle and clarified that the Special Purpose Vehicle and utilization of funds are not adversarial. The learned Counsel for the State of Odisha said she will get back within two weeks after taking instructions in this regard.
Additional Affidavits & Supplementary Additional Affidavit were filed by the state of Odisha. Report no. 4 of 2018 was submitted by CEC & it stands disposed of.
With regard to I.A. No. 58800/2018, the Learned counsel for the State of Odisha has confirmed the receipt of all the due payments from the applicant (Birat Chandra Dagara). The SC allowed the application and said that the State of Odisha may take certain necessary steps. In addition to this, SC said:
“Mining may be resumed subject to compliance of all the regulatory requirements including clearances.”
In accordance with the hearing on September 24, 2018, the IA No. 139365/2017 has been disposed of, as stated by learned counsel for the Odisha Mining Corporation Limited and that of the state of Odisha, all payments have been made and all necessary permissions have been obtained and under the circumstances, the Odisha Mining Corporation Limited may be permitted to resume mining.
In addition to this, in the IA Nos. 111982/2018, 111973 & 136382/2018 the learned Counsel of the State of Odisha confirmed that the payment has been made. The Court disposed of the matter and ordered that subject to clearances being obtained, the applicant(s) may be permitted to resume mining.
IA Nos. 113096/2018 113096, 110418/2018, 132667/2018, 130078-79/2018 & 130083/2018 have been listed to be heard on October 31, 2018. In IA No. 113096/2018, the Court has ordered to issue notice returnable on 31st October, 2018.
During the hearings from 18 September 2018 to 5 October 2018, the arguments were heard in part.
On 8 October 2018, agruments on the issue concerning Sarda Mines Pvt. Ltd were concluded and the order has been reserved.
On 26 October 2018, the matter was relisted to October 29, 2018.
On 29 October 2018, with the agreement of all the parties, Hon’ble Mr. Justice A.K. Patnaik, retired Judge of the Supreme Court has been appointed as an Oversight Authority to consider the effective functioning of the SPV and the following orders have been issued in this regard:-
(a) Hon’ble Mr. Justice A.K. Patnaik is appointed by this Court to oversee the work and progress carried out by the Special Purpose Vehicle (‘OMBADC’). Hon’ble Mr. Justice A.K. Patnaik may assume charge as an Oversight Authority in terms of the orders of this Court with immediate effect and may issue suitable communications to the State Government including the OMBADC.
(b) The priority of the projects as stated in the affidavit filed by the State of Odisha dated 20.10.2018 may be modified to prioritize the following and move them up the ladder with other activities in the first phase:
- Provision of drinking water through piped water supply projects
- Improvement of health services including development of primary health centers, mobile medical vans, eye clinics, infrastructure for specialty health care, hospitals, tie ups or referral systems with major hospitals, etc.
- Improvement of educational services including the infrastructure of educational institutions, technology based alternative learning, etc.
(c) Priority to the expenditure from the amounts recovered out of the judgment of this Court may be utilized in the districts of Keonjhar, Mayurbhanj and Sundargarh. However, Hon’ble Mr. Justice A.K. Patnaik is at liberty to ensure that the funds are utilized for nearby districts if it becomes necessary and if nearby districts are affected by pollution.
(d) Quarterly report of performance may be filed by the SPV before Hon’ble Mr. Justice A.K. Patnaik. The quarterly report may be filed for the first year and thereafter if necessary after six months.
(e) In addition, having regard to the nature of the funds and quantum of funds which are involved in the matter, the CEC may also carry out a complete on-the-spot verification about the utilization of the moneys and file a report before Hon’ble Mr. Justice A.K. Patnaik.
(f) Hon’ble Mr. Justice A.K. Patnaik may consult the Comptroller and Auditor General, the Principal Accountant General as well as the Chief Secretary to ensure that the idle and reserve funds may be deposited in the highest yield-granting risk-free securities.
(g) It will be open to Hon’ble Mr. Justice A.K. Patnaik to appoint such auditors as he may consider appropriate or request the CAG to get a distinct and accurate account of expenditures by the State Government/OMBADC from SPV funds.
Hon’ble Mr. Justice A.K. Patnaik may submit the first report to this Court as and when he deems appropriate.
After hearing the learned counsel for the parties and the amicus curiae and after having a look at the response filed by the State of Odisha with respect to the functioning of the Special Purpose Vehicle, the abovementioned orders have been issued. It has been established that a day to day oversight is not at all necessary. Additionally, the Oversight Authority is at liberty to take the assistance of any one or two officers or retired High Court Judges of his choice to assist him for this purpose.
On 31 October 2018, IA Nos. 110418/2018 & 132667/2018 (for condonation of delay in depositing the amount and for placing on record additional documents on behalf of M/s Geeta Rani Mohanty, a Partnership Firm) & 110418/2018 & 132667/2018 (for intervention on behalf of Geeta Rani Mohanty) were taken up.
The condonation of delay in depositing the amount and for placing on record additional documents is allowed subject to a faw exceptions.
The Court had concerns regarding the dispute inter se between the partners of M/s Geeta Rani Mohanty and Geeta Rani Mohanty.
Applications for condonation of delay in depositing the amount and for placing on record additional documents . In IA No. 137884/2018, application for intervention was allowed only for the purpose of application for directions.
It is submitted by the learned senior counsel appearing for M/s Geeta Rani Mohanty that there is no dispute and that any dispute is sought to be raised by Geeta Rani Mohanty.
A reportable judgment signed by the bench has been placed on the file on November 12, 2018, concerning the illegalities involved in the mining lease of Sarda Mines Private Limited (SMPL).
The Central Empowered Committee (CEC) concerned itself with seven major issues:
- Regarding renewal of the mining lease.
- Regarding validity of the Environmental Clearance.
- Regarding sale of iron ore in the form of ROM by Sarda Mines Private Limited.
- Regarding diversion of additional land for mining and allied activities
- Regarding production of iron ore without/in excess of the Environmental clearance.
- Regarding enquiry done by the State Government for alleged violation of Rule 37, MCR, 1960 [Mineral Concession Rules of 1960].
- Regarding alleged ownership of the mining lease actually being with Jindal Steel and Power Ltd.
CEC had challenged the validity of the activities of SPML vis-à-vis the terms of Environmental Clearance granted to them.
It was submitted by SMPL that the CEC had confused itself between extraction or production of iron ore ROM and extraction or production of iron ore. In fact, they claimed to have never engaged in any excess or illegal mining, contending the quantification of the penalty by the CEC is incorrect.
However, the court found no merits on the objections presented by SPML, specifically in light of the arguments held, their conduct and activities and their misinterpretation of the environmental clearance. The Court ordered the CEC to rework on the quantum of the penalty within 6 weeks and provide access of all the relevant documents to SPML. The matter against SPML stands disposed of.
On December 12, 2018, the applicant says that the payment has been made and clearance is available in respect with IA Nos. 172486/2018 & 172493/2018. The State of Odisha has asked for a period of two weeks to file a reply.
On January 16, 2019, in IA No.110418/2018, the Senior Counsel appearing for the State of Odisha affirmed that all payments due from M/s Geeta Rani Mohanty (firm) have been received. Accordingly, the instant application for condonation of delay in depositing the amount of compensation was allowed.
In IA Nos. 172486/2018 and 172493/2018 the Senior Counsel appearing for the State of Odisha affirmed that all payments due from M/s National Enterprises have been received. Application for intervention was allowed only for the purpose of application for directions and the delay in making the payment was condoned.
In IA No. 153571/2018 and 153579/2018, since the applicant had failed to deposit the entire amount, the application for direction was dismissed.
In IA No.137873/2018 in IA No.110418/2018, IA Nos.130079/2018, 130083/2018 and IA No.113096/2018 the applicants prayed for and were granted four weeks’ time to file rejoinder affidavit.
In IA No.180945/2018, the application for extension of time for framing new National Mineral Policy, on the basis of reasons stated, the time to complete the task of reviewing the National Mineral Policy, 2008 and announce a new National Mineral Policy is extended upto 30th April, 2019. IA No.180945/2018 stands disposed off.
In the course of hearing, the issue of deleterious effect of mining of vegetation in the area came up and the Court was informed about the re-grassing technology. Senior Counsel appearing for the applicant, Mukul Rohatgi stated that the mine owners would be willing to bear the cost of re-grassing upon termination of mining activities in the area since it is in the larger interest of the environment. The Court directed the Senior Counsel for the state of Odisha, Rakesh Dwivedi to look into the matter and make appropriate suggestions for implementing this proposal. Senior Counsel appearing for Union of India stated that this will also form a part of the National Mining Policy 2019.
On mentioning by the Counsel for Common Cause, Prashant Bhushan, the Court has directed to ascertain the time period for the report of the Committee comprising Hon’ble Mr. G.S. Singhvi and Hon’ble Mr. Anil R. Dave, former Judges of this Court.
On March 26, 2019, IA no. 40121/2019 was listed to be heard on April 5, 2019, on mentioning.
On March 28, 2019, the matter was ordered to be listed on a Thursday, after four weeks.
On April 8, 2019, the Court has ordered to issue notice returnable in 4 weeks.
On mentioning, the bench took up the matter on April 24, 2019. An order to list the IA Nos. 39315/2019 & 25405/2019 on April 29, 2019 before the appropriate Bench was issued.
On mentioning, the bench took up the matter on April 26, 2019 and ordered to list IA No. 58796/2019 alongwith IA Nos. 39315/2019 & 25405/2019 on April 29, 2019.
On April 29, 2019, the Report filed by the Union of India is taken on record and order to serve the copy of the Report to the contesting parties was issued. Parties may file a response within four weeks.
In IA No. 25405/2019, the IA was disposed of. The counsel for the applicant was heard and the court said:
"...it is open for the High Court to decide Writ Petition (C) No. 9428 of 2015 pending before it irrespective of the pendency of the Writ Petition (C) No. 114 of 2014 before this Court."
In IA No. 39315/2019, the IA was dismissed. The counsel for the applicant was heard and the court refused to grant a reduction of rate of interest, from 24% pa to 12% pa.
In IA No. 58796/2019, the Court has ordered to issue notice returnable in 4 weeks.
S.L.P. (C) No. 23644/2016 was ordered to be listed the next day, April 30, 2019.
On May 3, 2019, in SLP (C) No. 23644/2016, the Amicus Curiae submitted that the report of the Central Empowered Committee will be filed on or before May 8, 2019.
On May 9, 2019, the bench has ordered SLP (C) No. 23644/2016 to be listed after the summer vacation.
On July 16, 2019, the bench consisting the Chief Justice, Justice Deepak Gupta and Justice Aniruddha Bose directed to list IA Nos.176885 & 176881 of 2018 before an appropriate Bench as per roster in the next week.
On July 26, 2019, Chief Justice and Justice Deepak Gupta perused the letter written by Justice GS Singhvi and granted another extension, until end of September, 2019 to the two-member committee of Justice GS Singhvi and Justice Anil R. Dave for submission of report of the Committee.
IA No. 40518/2019 in SLP(C) Nos. 26984-85/2016 was taken up by the bench on mentioning where the petitioner(s) sought to to withdraw the special leave petitions. The bench allowed it and dismissed the petitions on this ground.
On September 11, 2019, Mr. Ranjit Kumar mentioned the matter on behalf of the respondents and the Court directed the Registry not to delete IA Nos. 176885/2018 and 176881/2018 which are likely to be listed for hearing on 23rd September, 2019.
On September 13, 2019, Mr. Neeraj Kishan Kaul mentioned the matter on behalf of the respondents and sought for an urgent listing of the IA No.58796/2019. The Court directed the Registry to list it for hearing on 23rd September, 2019.
On September 17, 2019, Solicitor General appearing for Orissa Mineral Development Corporation sought for an urgent listing of the IA Nos.62602/2019, 62606 of 2019 and 76741 of 2019 along with IA No.58796 of 2019. The Court directed the Registry to list it before an appropriate Bench for hearing on 23rd September, 2019.
On September 23, 2019, IA Nos. 40121/2019, 55390/2019 /2019 and 58796/2019 were listed to be heard on September 30, 2019. In IA No. IA No. 30915, 62602, 62606 and 76742/2019, application for intervention is allowed and a notice is issued, returnable on October 14, 2019. The counsel for the State accepted the notice and sought time to file a reply. The bench of Justices Deepak Gupta and Surya Kant has directed the state to file a reply.
On October 1, 2019, letter dated 28.09.2019 for extension by Justice G.S. Singhvi was accepted by the bench of Justice Deepak Gupta and Justice Aniruddha Bose , however, the report was not submitted. The registry was ordered to communicate to Justice Singhvi that the time to submit the report is extended upto 19.10.2019. The matter will be listed next on October 24, 2019.
On October 4, 2019, in IA No.40121/2019, M/s. Essel Mining claims to have paid the entire amount of penalty and interest and received all the clearances as per the judgment dated August 2, 2017 and have requested to resume the mining. However, the CEC in its report has stated that the permission should be restricted to only 134 hectares. Applicant's advocate, SA Mukul Rohatgi stated that without prejudice to the rights of his client, at this state, he has restricted his claim to 134 hectares. Mr. Prashant Bhushan submitted that permission may not be granted as the question of whether M/s. Essel Mining have gone beyond the maximum limit of 1000 hectares has been referred to the Commission comprising of Hon'ble Justices GS Singhvi and AR Dave and their report is awaited. The IA was disposed of, granting permission to Essel Mining, subjected to any observation made in the report of Hon'ble Justices GS Singhvi and AR Dave. After considering the report and hearing the parties, the Court shall decide whether to vacate this order or not.
In IA No.58796/2019, the petitioner has paid the entire money due and he has all permissions, the application is allowed.
On October 14, 2019, two week’s time is granted to the CEC to file a reply in IA No. 30915/2019. In IA Nos. 62602/2019 and 62606/2019, Mr. Tushar Mehta has sought some time to verify the payment made by Bhadrashi iron and manganese lease in respect with their third mine on October 4, 2019. The matter is likely to be listed next on November 8, 2019.
IA Nos. 30915/2019, 62602/2019 & 62606/2019 were mentioned and IA Nos. 131281/2019 & 131288/2019 were called on hearing on October 15, 2019. The bench consisting Justices NV Ramana, R Subhash Reddy and BR Gavai has ordered the matters not to be deleted from the date already notified i.e. 08.11.2019.
On October 24, 2019, Justices GS Singhvi and AR Dave submitted an 11-volumed report and the registry is directed to give hard/soft copy of all the volumes to the writ petitioner(s), the Amicus Curiae and counsel for the State concerned, within three weeks. The Registry may decide whether to give hard copy or the soft copy of the reports. The Registry may procure the soft copy from Justice G.S. Singhvi's Secretary. The matter is to be listed on January 27, 2020.
More precisely, a copy of Volume No.1 shall be given to counsel appearing for Rungta Mines Ltd., Rungta Sons Pvt. Ltd., Mangilall Rungta, Freegrade & Co. Pvt. Ltd., M/s. Bonai Industrial Company Ltd. and Essel Mining and Industrial Ltd. A Copy of Volume No.2 shall be given to the counsel appearing in the case of Kamaljit Singh Ahluwalia, Kavita Agarwal, Mideast Integrated Steel Ltd., Serajuddin & Company, Indrani Patnaik, Sarda Mines Pvt. Ltd., Mala Roy, Ramesh Prasad Roy and Aryan Mining and Trading Corporation Pvt. Ltd. As far as Volumes No.3 to 11 are concerned, a copy shall be given to the counsel for each party.
On November 13, 2019, Justices SA Bobde and BR Gavai has directed that the instant application (IA No.179704 of 2018) must be listed in the month of January, 2020 before the appropriate Bench.
In IA No.157635/2019 and WP (C) No(s). 114/2014, on December 4, 2019, Chief Justice, Justices BR Gavai and Surya Kant ordered for the instant application along with the main matter after two weeks before the appropriate Bench.
On December 13, 2019, in IA Nos.30915/2019 & 153946/2019, the bench listed the matter on January 8, 2020. In the meantime, the applicant shall ensure the stacking of the mined iron ore is done grade-wise and there are separate status of 4000 tons each as per the order of the CEC. In the affidavit the specifications of the status shall be given grade-wise and weight-wise. IA Nos. 62606/2019 and 62606/2019 were directed to be listed on January 27, 2020.
On January 8, 2020, in IA Nos. 30915/2019, 153946/2019 and 186810/2019 arguments concluded and orders were reserved. In IA No.157635/2019, notice issued, returnable after two weeks. In the meantime, the respondent(s) may file their respective reply affidavits.
In the course of hearing, on January 16, 2019, the Apex Court took cognizance of the deleterious effect of mining on vegetation. In particular, it observed that an area which is mined results in complete elimination of grass which in turn denies fodder to the herbivores. The only solution can be re-grassing of such mined areas and re-grassing technology is available in the country. The bench on January 8, 2020 opined a condition must be imposed in the mining lease, the environmental clearance and the mining plan to the effect that the mining lease holders shall undertake re-grassing the mining area and any other area which may have been disturbed due to their mining activities and restore the land to a condition which is fit for growth of fodder, flora, fauna etc., after ceasing mining operations.
The Union of India has been directed to report the action taken within a period of three weeks, to devise appropriate methods for ensuring compliance of this condition after the mining activity is over, at the cost of the mining lease holders. This condition shall be in addition to the other conditions which have already been imposed under the mine closure plan and shall not be imposed in derogation of any other conditions. The matter is likely to be listed after three weeks.
In IA No. 186810 of 2019, the Committee in Volume VIII of its Report examined SMPL’s case and noted that there was no violation of either Section 6 of the Mines and Minerals (Development and Regulation) Act, 1957 or of Rule 37 of the Mineral Concession Rules, 1960. SMPL contends that it is suffering irreparable injury and highlights how it has already lost more than 5½ years and how hardly halfayear of its lease period is left. Expressing willingness to furnish an undertaking or bank guarantee equivalent to its dues as assessed by the CEC, SPML sought permission to resume mining operations. The State of Odisha and the CEC expressed no objections against granting SMPL’s prayer for resumption, subject to it depositing the CEC assessed dues and strictly complying with all other mandatory rules, regulations and conditions for conducting mining operations. The bench allowed the application in the following terms:
(i) SMPL is granted one month’s time to deposit the dues as assessed by CEC in its report dated 08.05.2019.
(ii) In addition, SMPL shall file an undertaking to comply with all the rules, regulations and other mandatory provisions for carrying out mining operations.
(iii) After complying with directions (i) and (ii) above, SMPL can resume its mining operations in the leasedarea for the remainder of its lease period.
In IA No. 30915 of 2019, application filed by M/s Mideast Integrated Steels Ltd. is allowed and Mideast is permitted to sell the iron ore already mined and stacked by it before 01.01.2018, under supervision of an authority to be appointed by the State Government subject to the sale proceeds being deposited with the Special Purpose Vehicle (OMBADC). The bench also ordered that:
The State Government shall appoint the Supervisory Authority within two weeks’ and the sale process shall preferably be completed within two months thereafter. Since the applicantcompany has neither sought nor have we permitted any resumption of mining operations, the aforesaid regulatory violations are not material for purposes of our determination of permitting sale of already extracted and stacked minerals and application of proceeds towards State arrears.
In IA No. 153946 of 2019, application is allowed and additional documents have been taken on the record.
IA Nos. 131281, 131288/2019 & 142745, 142758/2019 were called for hearing before the Court on 17th January, 2020.
IA Nos. 179704/2018 & 54364/2019 were called for hearing before the Court on 17th January, 2020.
On 24 January 2020, the bench consisting the Chief Justice and Justices Gawai and Surya Kant issued a notice returnable in 2 weeks and permitted dasti service in Petition for Special Leave to Appeal (C) No. 2090/2020.
The Supreme Court in an order dated 27 January 2020 granted the Union of India a period of 4 weeks for reporting the compliance by the states on a previous order by said court (08.01.2020) with respect to insertion of a condition of regrassing on the mining lease holders.
The Supreme Court in an order dated on the 29 January 2020 stated that committee report prepared by former Supreme Court Justices, J. G.S. Singhvi and J. Anil Dave be placed before the Odisha State Government for determining whether the facts and conclusions of the Committee necessitate the need for taking appropriate action in respect of the particular mining leaseholders.
In addition, the bench comprising of Chief Justice Bobde, J. Gawai and J. Surya Kant stated that the petitioners can bring to notice any information of the mining lease holders who may have been exonerated by the Committee, yet may have violated the law. In addition, any of the accused parties also have the right to be heard before any action is taken by the State Government on the report of the Committee. With respect to IA No. 157635/2019 filed by the Odisha Mining Corporation, the bench stated that applicant was permitted to commence the Mining Operations in the Tiringpahar Iron Ore Mines of OMC Ltd. Thus the IA was granted.
On February 14, 2020, the bench consisting the Chief Justice and Justices Gawai and Surya Kant heard and perused instant applications for directions.
In IA No.21593/2020 in SLP(C) No.2090/2020 & IA No.7117/2020 in WP (C) No.114/2014, the bench directed that auction, if any, may be completed provisionally and shall not be finalised without leave of this Court and ordered the matter to be listed on the third week of March 2020.
In IA Nos.7121/2020 & 7829/2020 in WP (C) No.114/2014 the bench directed that the auction will be subject to final order of this Court and ordered the matter to be listed on the third week of March 2020.
On March 23, 2020, the matter was relisted to March 25, 2020 or the next date of hearing by Chief Justice and Justices Surya Kant and L. Nageswara Rao.
On March 27, 2020, the matter was taken up through Video Conferencing by a bench of Justices L Nageswara Rao & Aniruddha Bose.
By an Order dated 15.01.2020, I.A. No. 30915 of 2019 filed by Ms. Mideast integrated Steels Ltd. was allowed and it was permitted to sell the iron ore already mined and stacked by it before 01.01.2018 under the supervision of an authority to be appointed by the State Government subject to the sale process being deposited with the Special Purpose Vehicle (OMBADC). The State Government was directed to appoint the supervisory authority within two weeks and the sale process preferably be completed within two months 2 thereafter.
I.A. No.46039 of 2020 has been filed for extension of time which was granted (vide order dated 15.01.2020) by another six months. The Applicant has stated that the Supervisory Committee recommended that the sale process can take place only on 24.02.2020.
The bench took into account the reasons stated by the Applicant and the lockdown and extended the time by four months from the uplifting of the lockdown & disposed of the IA.
On June 8, 2020, Chief Justice and Justices Bopanna & Roy heard Vikas Singh, the senior counsel representing the petitioners in IA No. 50688/2020 and IA No.50694/2020 for stay and exemption from filing the affidavit, respectively. The matter was tagged with SLP(C) No. 2090/2020 and the bench held that auction, if any, may be completed provisionally and shall not be finalised without leave of this Court.
On July 14, 2020, the bench comprising of Chief Justice alongside Justice R Subhash Reddy & AS Bopanna allowed IA No. 57943/2020 for withdrawal of IA No. 51138/2020 and dismissed IA No. 51138/2020 as withdrawn. Rest of the applications have been listed with SLP(C) No. 2090/2020.
On July 30, 2020, the bench comprising Chief Justice and Justices Bopanna & Ramasubramanian heard and perused the instant interlocutory applications.
IA Nos. 63930, 63931 & 63933/2020 for the withdrawal of IA Nos. 7117, 7121 & 7829/2020 were allowed by consent of the parties and IA Nos. 7117, 7121 & 7829/2020 were dismissed as withdrawn.
IA Nos.168557/2019, 168564/2019, 168569/2019, 168578/2019 for directions on behalf of Orissa Mineral Development Co. Ltd. were ordered to be listed on August 4, 2020.
IA No.67730 of 2020 for withdrawal in/and SLP(C) No.2090/2020 was allowed and consequently, the special leave petition was dismissed as withdrawn.
On August 5, 2020, IA Nos. 168557/2019, 168564/2019, 168569/2019, 168578/2019 were relisted to August 7, 2020 by the Chief Justice and Justices AS Bopanna & V Ramasubramanian.
The Chief Justice, Justice AS Bopanna & Justice V Ramasubramanian heard the IA Nos. 168557/2019, 168564/2019, 168569/2019, 168578/2019 and reserved the order.
On August 11, 2020, IA Nos. 168557/2019, 168564/2019, 168569/2019, 168578/2019 pertaining to the mining lease in favour of the applicant in respect of Roida Bhadrasahi Iron Ore and Bhadrasahi Iron and Manganese were disposed of by the bench consisting the Chief Justice and Justices AS Bopanna & V Ramasubramanian under the following terms:
The applicant has sought condonation of delay in making the payment in the applications. Further, In IA Nos.168557/2019 & 168569/2019, the applicant has also sought a direction to conduct joint verification of the undisposed stock with the state and allow its sale to enable the applicant to realise the amount. In IA.Nos.168564/2019 and 168578/2019, the applicant has sought permission to resume regular mining operations in view of payment of the entire amount.
As per the order dated August 2, 2017, in WP (C) 114 of 2014, the compensation was supposed to be paid on or before 31.12.2017. The State, in its reply, has said that the applicant has fully paid the compensation along with interest, in respect of all the mining leases held by them.
In light of this, the bench disposed of the order with the following directions:
(i) The delay in payment of the compensation along with interest is condoned;
(ii) The Applicant - OMDC be permitted to resume mining operations subject to all necessary clearances required in accordance with law being obtained;
(iii) The Competent Officers of the State of Orissa shall also conduct a joint verification of the undisposed stock and allow sale of the same by the Applicant - OMDC on following due procedure.
On November 24, 2020, the Chief Justice & Justices Bopanna & Ramasubramanian heard IA No. 101547/2020, an application for the extension of time and allowed an extension of six months from the date of the order.
On January 6, 2021, the Chief Justice & Justices Bopanna & Ramasubramanian heard IA No. 112331/2020 and notice returnable on 29.01.2021 was issued.
Additionally, IA Nos. 131281/2019, 131288/2019, 179704/2018, 54364/2019 and 150858/2019 in WP(C) No. 114/2014 were disposed of by the bench with appropriate orders.
In IA Nos. 131281/2019 and 131288/2019, the bench formed an independent Committee comprising Justice Bijoy Krishna Patel, Chairperson, Odisha Human Rights Commission and Justice S.C. Parija, Former Judge, Odisha High Court to supervise the removal of the material and its sale while no mining operation is undertaken under the cover of this Order. The Committee shall ensure that the sale proceeds should go directly to the treasury of the State Government to be adjusted towards compensation.
On January 29, 2021, the IA No 112331/2020 was taken up by the bench comprising the Chief Justice, Justice Bopanna & Justice Ramasubramanian. The bench has granted three weeks to Ms. Kirti R. Mishra appearing on behalf of the State to file affidavit.
On March 25, 2021, the apex court listed IA No 112331/2020, IA No 11930/2021, IA No 112331/2020 & IA No 11930/2021 in WP (C) 114/2014 in the week commencing from 12th April, 2021.
On May 21, 2021, Justice Vineet Saran & Justice BR Gavai ordered IA No. 51759/2021 to be listed on May 25, 2021.
On December 17, 2021 and February 15, 2022, Senior Counsel Dushyant Dave orally mentioned IA No.136907/2021 on behalf of Odisha Mining Corporation Limited and sought listing it before an appropriate Bench.
On 7th April 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli, after due submissions on behalf of the applicants, allowed IA No. 125663 of 2021 and IA No. 125678 of 2021, and directed IA No. 121114 of 2021, IA No. 121119 of 2021, IA No. 142745 of 2019, IA No. 142758 of 2019, IA No. 112331 of 2020, and IA No. 11930 of 2021 to be listed on 12th April 2022.
On 12th April 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli allowed IA No. 142745 of 2019.
In reference to IA No. 142748 of 2019, the counsel for applicant(s) submitted that all payments have been cleared and there is a delay of 459 days in making the payment of compensation in terms of this court’s judgment dated 2nd August 2017, and is seeking condonation of delay and the direction to the State Government to permit him to resume mining operations subject to receipt of all statutory clearances.
Accordingly, the bench condoned the delay in making payment and allowed IA No. 142748 of 2019 subject to requisite statutory clearances.
At the request of the learned counsel appearing for the State, the court listed IA No. 121114 of 2021, IA No. 121119 of 2021, IA No. 550235 of 2022, IA No. 112331 of 2020, and IA No. 11930 of 2021, IA No. 142067 of 2021, IA No. 30300 of 2022, IA No. 27088 of 2022, IA No. 49052 of 2022, IA No. 49058 of 2022, and IA No. 51579 of 2021 on 20th April 2022.
On 13th April 2022, with reference to IA No. 153048 of 2021, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli listed the application on 20th April 2022.
On 19th April 2022, with reference to IA No. 54184 of 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli listed the application along with W.P.(C) No. 114/2014.
On 20th April 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli allowed IA No. 121114 of 2020, IA No. 121119 of 2021, IA No. 153048 of 2021, IA No. 11930 of 2021, IA No. 142067 of 2021, IA No. 49058 of 2022.
The bench also allowed IA No. 112331 of 2020 subject to the payment of compensation and balance amount of interest by the applicant, and IA No. 30300 of 2022 subject to two weeks’ time to CEC for filing a report.
With reference to IA No. 51759 of 2021, the bench allowed the same after deeming it appropriate to extend the time by six months for disposal of unsold stocks of iron ore of different grades and sizes which have been extracted, processed, and stacked at the dispatch site within the lease hold area prior to 31st December 2017.
With reference to IA No. 54184 of 2022, the bench allowed for a counter affidavit to be filed in reply to the application filed by the applicant seeking certain directions.
On 22nd April 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli listed IA No. 60995 of 2022 and IA No. 60999 of 2022 on 25th April 2022.
On 25th April 2022, the bench comprising of the Honourable Chief Justice of India and Justice Hima Kohli listed the matter on 2nd May 2022.
On 27th April 2022, the bench comprising of the Honourable Chief Justice of India and Justice Hima Kohli listed IA No. 63905 of 2022 to be listed along with other IAs.
On 2nd May 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli allowed IA No. 63903 of 2022, IA No. 60999 of 2022.
With reference to IA No. 63905 of 2022, the applicant sought permission to sell 4,09,596,304 MT of iron ore of different grades and sizes at the Sulaipat Iron Ore Mines under the supervision of the State. The applicant also sought directions to the State of Odisha to issue transit permits for removal of ore from the leasehold areas. Thus, the bench disposed off IA No. 63905 of 2022 subject to statutory clearances and any orders passed by the High Court.
With reference to IA No. 60995 of 2022, the counsel appearing for the applicant submitted that he is willing to deposit the compensation amount along with interest at the rate of 12%, within a period of two weeks after getting all clearances. The counsel for the State provided that it doesn’t have any objection if the reliefs with regard to Raika and Nuagaon Mines sought in this application are granted. It was additionally provided by the counsel for the State that the mining lease in Raikela Mines has already been terminated vide order dated 30th January 2015, which hasn’t been challenged by the applicant, and thus, no relief should be granted by this court with respect to the above mines.
However, the counsel for the applicant contended that he hasn’t been served with the order dated 30th January 2015. Accordingly, the court allowed the application subject to deposit of the compensation amount as demanded by the State along with an interest at the rate of 12% within two weeks, subject to all statutory clearances. The State government was also directed to serve a copy of the order dated 30th January 2015 to the applicant, which shall remain open to challenge in appropriate proceedings. Accordingly, the bench disposed off IA No. 60995 of 2022.
On 5th May 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli listed IA No. 4883 of 2022 on 9th May 2022.
On 9th May 2022, the bench comprising of the Honourable Chief Justice of India, Justice Krishna Murari, and Justice Hima Kohli allowed IA No. 4883 of 2022 subject to the payment of compensation and balance amount of interest by the applicant(s), and the receipt of all statutory clearances.
On 10th August 2022, with reference to IA No. 78138 of 2022 in IA No. 60995 of 2022 in W.P.(C) No. 114 of 2014, the counsel for the appellant sought clarification with respect to the rate of interest he is directed to pay under Section 21(5) of the Mines and Minerals (Development and Regulation) Act of 1957 levied pursuant to the judgment dated 2nd August 2017 passed by this court in the above writ petition.
Accordingly, the applicant was directed to make payment of compensation in respect of Raikela Iron Ore Mines, as demanded by the State Government, along with interest @ 12% per annum only within a period of two weeks, subject to the final order passed in this application.
On 17th October 2022, the bench comprising of the Honourable Chief Justice and Justice Bela M. Trivedi listed the tagged matters along with Special Leave Petition (C) No.9890 of 2020.
On 2nd January 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna, with respect to IA No. 149040 of 2022 in W.P.(C) No. 114 of 2014 directed the matter to be listed on 16th January 2023.
On 16th January 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna detagged W.P.(C) No. 505 of 2020 from this matter and listed it along with W.P.(C) No. 562 of 2009. Accordingly, W.P.(C) No. 114 of 2014 and Diary No. 44077 of 2018 were listed on 27th January 2023.
On 27th January 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed the matter to be listed on 3rd February 2023.
On 3rd February 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed the matter to be listed on 6th February 2023.
On 6th February 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed the matter to be listed on 9th February 2023.
On 9th February 2023, the bench comprising of Justice KM Joseph, Justice Hrishikesh Roy, and Justice BV Nagarathna directed the matter to be listed on 13th February 2023.
On 13th February 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed the matter to be listed on 27th February 2023.
On 27th February 2023, with respect to IA No. 160451 of 2018 and IA No. 160455 of 2018, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed the matter to be listed on 17th March 2023.
With respect to the rest of the tagged matters, it was sought by the counsel appearing for the applicant to pass an order in IA No. 54184 of 2022 which consolidates the prayers sought in other IAs. The bench appropriately set out the following reliefs:
- Order joint verification of the quantity and reanalysis of the chemical composition for ascertaining the correct grad of undisposed stock of iron ore extracted from the Ingani Jharan, Iron Maganse Mines by the applicant.
- Applicant be given four months’ time to carry out sale of iron ore in question after joint verification, which will be conducted under watchful gaze and control of the officers of the respondent State.
- Amount realised from sale of iron ore in question shall be adjusted against the amount of penalty assessed by the proceedings dated 5th April 2018.
- The entire amount from the sale of the iron ore in question will be deposited with the Special Purpose Vehicle (SPV). The balance amount remaining due shall be paid within a period of four months from the date of sale.
Accordingly, the bench disposed off the IAs discussed. The rest of the IAs were directed to be listed on 17th March 2023.
The delay in Diary No. 44077 of 2018 was also condoned by the bench and listed for hearing on 17th March 2023.
On 17th March 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed IA No. 149040 of 2022, IA No. 130079 of 2018, and IA No. 30300 of 2022 to be listed on 6th April 2023. The bench directed the rest of the IAs to be listed after three weeks.
On 6th April 2023, with respect to IA No. 149040 of 2022 and IA No. 21132 of 2023, the court allowed the petitioner three months’ time to sell the iron ore in question. If not, the respondent State is empowered to take over and sell the iron ore in question.
It was also pronounced by the bench that the State can simultaneously begin the process for conducting the auction of the Leasehold Area in accordance with law. It is also free to proceed with the recovery of the amount due from the applicant which is said to be approximately Rs. 600 Crores in addition to interest. However, in this regard, the state must give due credit for the amounts fetched in the sale which is permitted by this Order and take into consideration any amount tendered earlier.
Accordingly, the bench disposed of the applications.
With respect to IA No. 130083 of 2018, the bench condoned the delay in making the deposit of compensation and disposed of the application.
The bench comprising of Justice KM Joseph and Justice BV Nagarathna listed IA No. 30300 of 2022 and IA No. 42571 of 2023 to be heard on 14th April 2023.
On 13th April 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna listed this matter along with IA No. 147147 of 2018 to be heard on 1st May 2023.
On 25th April 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed IA No. 79915 of 2023 in IA No. 149040 of 2022 in W.P.(C) No. 114/2014 to be listed on 1st May 2023.
On 1st May 2023, the bench comprising of Justice KM Joseph and Justice BV Nagarathna directed IA No. 30300 of 2022 to be listed after two weeks.
With respect to IA No. 42571 of 2023, the counsel for respondent State wanted to rectify the IA to correct the errors, and was permitted to file an application. Out of the total amount of compensation, i.e., Rs. 3308.05 Crores, only a sum of Rs. 305.32 have been recovered from the defaulters. Thus, a supplementary affidavit was to be filed by the respondent State indicating reasons for the same and what steps have been taken for speedy recovery of the amount. Accordingly, the bench listed the IA in the month of July 2023.
With respect to IA No. 147136 of 2018, the delay of 215 days in payment of the dues in terms of order dated 2nd August 2017 passed by this court is condoned by the bench.
On 10th May 2023, the bench comprising of Justice KM Joseph, Justice Ahsanuddin Amanullah and Justice BV Nagarathna directed IA No. 30300 of 2022 to be listed on 5th July 2023.
With respect to IA No. 119651 of 2023, the court was not inclined to entertain the interlocutory application having regard to the self-operative consequence envisaged in the order dated 6 April 2023.
With respect to IA No. 27088 & 30300 of 2022, the interlocutory application is dismissed.
On 10th July 2023, a bench comprising of The Chief Justice and Justice Pamidighantam Sri Narasimha directed IA No. 42571 of 2023 to be listed on 11 August 2023.
On August 14, 2023, the bench of Chief Justice with Justices J.B. Pardiwala and Manoj Misra heard IA No. 42571 of 2023. Mr Rakesh Dwivedi, senior counsel appearing on behalf of the State of Odisha made the following statements:
- At present, an amount of Rs 2,622 crores, excluding interest, is due and outstanding on account of illegal mining, out of which an amount of Rs 2,215 crores is recoverable from five lessees;
- The leases of the defaulters have either expired or, as the case may be, have been terminated and they are not operating any lease or allowed to participate in tenders; and
- Proceedings for termination of the leases are pending against some of the defaulters who shall have small some amounts comparatively due and outstanding.
The bench issued the following directions:
- The State Government shall take expeditious steps to pursue the recovery proceedings in accordance with law and shall take necessary steps by attaching the assets of the defaulting entities; and
- Hereafter, the terms and conditions of tender shall expressly clarify that no tender shall be entertained at the behest of an entity against which outstandings are due or companies in which the same promoters are interested.
During the hearing, Mr Bhushan highlighted that there is a need to impose a cap on mining in the State of Odisha and presented the states of Karnataka and Goa as examples. The records indicate that yearly mining permissions cover 58 leases with permissible excavation to the extent of 227.13 million tonnes. Mr Bhushan’s note has provided that considering the total reserves are 4748.52 million tonnes, the reserves would come to an end within twenty years.
In this regard, the State of Odisha disclosed that the estimate of iron ore reserves on the geologically explored strata at present is 9220 million tonnes and there is a likelihood of this increasing in future.
Ms Aishwarya Bhati, Additional Solicitor General on behalf of the Union of India stated that the Union of India shall consider the position and file its affidavit within eight weeks. They will be examining the states of Karnataka and Goa to identify whether a cap on mining is necessitated in the case of State of Odisha.
The Amicus Curiae, Mr A D N Rao opined that the Central Empowered Committee (CEC) may be tasked with submitting recommendations on the capping of mining. The Court shall also examine this after the Union of India’s response is filed.
On 6th October, 2023, the matter was heard by Justice Dipankar Datta.
An application for modification of order dated 27.02.2023 on behalf of Bikash Chandra Deb (I.A. D.No. 84743/2023), but on scrutiny the same is found defective.
A period of three weeks from the date was considered to cure the found defects. Upon failing, the application for modification of the Court's order dated 27 Feb 2023 shall stand dismissed with further reference to the Court.
On 4th Dec, 2023, the matter was listed for hearing in the court of Hon'ble Chief Justice, Justice J.B. Pardiwala, Justice Manoj Misra.
The court directed the Ministry of Environment, Forests and Climate Change (MoEF & CC) to file an affidavit based on its independent assessment of the issues related to sustainable development and inter-generational equity within four weeks.
The court also directed the State of Odisha to file an affidavit within four weeks elaborating on the steps taken to recover the outstanding dues and attach the assets of the defaulters. It asked the state to clarify the extent of the recoveries made and the time schedule for the balance outstanding.
The court listed the interlocutory application (IA No 42571/2023) for 5 February 2024.
The court directed the Additional Chief Secretary, Department of Mines of the Government of Odisha to file an affidavit, after due verification, indicating whether the applicant in IA Nos. 220571, 229912 and 242242 of 2023 has made full payment and has all necessary clearances for mining activities. The affidavit is ordered to be filed within two weeks.
The court further listed IA Nos 220571, 229912 and 242242 of 2023 for 15th December, 2023 and IA No 42571 of 2023 for 5th February, 2024.
On 12th Jan, 2023, the matter was heard by a coram of the Chief Justice DY Chandrachud, Justices J.B. Pardiwala and Manoj Misra. I.A. NOs. 220571, 229912, 242242, 252547/2023 and 8904/2024 were listed for hearing.
Refering to its on directions for the recovery of compensation under Section 21 (5) of the Mines and Minerals (Development and Regulation) Act 1957 from leaseholders including the applicant/lessee, who had unauthorisedly extracted mineral ore either withouth clearance or beyond the limit of production approved under the environment clearance and forest clearance on or before 31 December 2017.
On 4th December, 2023 the court directed the Additional Chief Secretary, Department of Mines of the Government of Odisha shall file an affidavit, after due verification, indicating as to whether the applicant has made full payment in terms of the order of this Court dated 2 August 2017. The affidavit shall also clarify as to whether the applicant has all necessary clearances for carrying out mining activities.
An affidavit of compliance dated 12 December 2023 has been filed by the Additional Chief Secretary in the Department of Steel and Mines, Government of Odisha.
The State Government states that it had issued a notice dated 2 September 2017 in respect of Baitarini Iron Ore Mines raising a demand of Rs 93.79 crores from the applicant.
In paragraphs 12 and 13 of the compliance affidavit, the position as regards the applicant has been set out thus:
“12. That as against the amount of compensation of Rs.93,79,56,821/- as demanded under section 21(5) of MMDR Act, 1957 towards production of minerals without or in excess of approved limited specified under EC and towards violation of FC, the amount of compensation paid by the lessee along with applicable interest in phases is to the tune of Rs.199,13,41,346/-…13. That the petitioner lessee, in addition to Baitarani Iron ore mines, was granted two more iron ore mines namely Balita Iron ore mines and Iongani-jharan Iron ore mines, against which similar demand was raised for payment of compensation under section 21(5) of MMDR Act, 1957 and the petitioner lessee has cleared all the dues along with the applicable interest computed as above.”
The affidavit of the Additional Chief Secretary also records that a notice to show cause had been issued to the applicant to explain as to why a proceeding under Section 4A(4) read with Rule 20 of the Rules of 2016 should not be initiated.
The applicant has placed on the record an order dated 10 January 2024 passed by the Government of Odisha in the Steel and Mines Department. The order is in pursuance of the show cause notice which was referred to in the affidavit of the Additional Chief Secretary and, inter alia, contains the following directions:
“Baitarani Iron Ore mining lease over an area of 65.39 Hc in the district of Keonjhar of Dr. Sarojini Pradhan is saved from lapsing under rule 20(6) of MC Rules 2016.
The name of the lease holder is substituted with Shri Sunandan Pradhan who is the legal heir and PoA holder of the lessee.
The production and despatch from the lease should commence within one year from the date of issue of this order.
The lease is considered valid up to 27.07.2028 as per section 8A(3) of MMDR Act 1957.
Execution of the Supplementary Lease Deed by the lessee will be allowed on production of the revised order for resumption from the Hon’ble Supreme Court of India and on extension of the validity of the lease under section 8A(3) of MMDR Act 1957.”
The above narration would make it clear that in pursuance of the notice to show cause, the applicant has made a total payment of Rs 199.13 crores, inclusive of interest as applicable. Moreover, the State Government has also passed orders on the show cause notice which was issued to the applicant as set out above.
In this view of the matter, the delay on the part of the applicant is condoned since the entire amount due has been paid over with applicable interest. The State Government shall now take necessary steps in accordance with law.
The IAs are accordingly disposed of.
The I.A. NOs. 113817, 113818/2023, 252362/2023 and I.A. No. 249622/2023 are ordered to be listed on 29 January 2024.
On February 02, 2024, the Supreme Court directed that the applicant shall within the next week place on the record copies of all the permissions which have been received, including environmental clearances. Copies of the clearances shall be furnished within three days to Mr A D N Rao, learned Amicus Curiae.
The Court further directed to list the Interlocutory Applications on February 9, 2024.
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