1
REPORTABLE
(Corrected)
IN THE SUPREME COURT OF INDIA
2024 INSC 267
CIVIL ORIGINAL JURISDICTION
WRIT PETITION (CIVIL) NO. 562 OF 2009
SAMAJ PARIVARTANA SAMUDAYA & ORS. ..... PETITIONERS
VERSUS
STATE OF KARNATAKA & ORS. ..... RESPONDENTS
WITH
W.P.(C) No. 505 OF 2020
AND
W.P.(C) No. 768 OF 2013
O R D E R
The present applications relate to mining activities being
undertaken in Districts - Bellary, Chitradurga and Tumkur in
Karnataka.
In 2009, the petitioner - Samaj Parivartana Samudaya had filed
a writ petition praying for this Court’s intervention on grounds of
the illegality of such mining activities and consequent harm caused
to the environment. This Court intervened and has passed several
directions and orders.
To avoid prolixity, we will not be referring to the catena of
Signature Not Verified
orders passed by this Court in depth and detail. However, to
Digitally signed by
babita pandey
Date: 2024.04.04
17:40:49 IST
Reason:
appreciate the present applications, we have summarized the
relevant developments below:
2
1
• The genesis of the Central Empowered Committee goes back
to this Court’s order dated 09.09.2002 in “ T.N. Godavarman
Thirumalpad v. Union of India & Ors. ”, where the Court was
concerned with the rampant pilferage and illegal extraction
of natural resources, particularly iron ore, and the
environmental degradation and disaster that may have
resulted from unchecked intrusion into the forest areas.
• The CEC was constituted to monitor the situation, implement
this Courts’ orders, and delineate the steps to be taken.
• On 19.11.2010, the CEC was directed by this Court to submit
a report with respect to certain mining leases granted by
the State of Karnataka in District – Bellary.
• The initial reports of CEC indicated large-scale illegal
mining being undertaken.
• On 06.05.2011, this Court constituted a ‘Joint Team’ to
determine the boundaries of the specific mines since a large
number of mining lessees were carrying out operations beyond
the lease boundaries, thereby causing environmental
degradation.
• On 29.07.2011, this Court imposed a temporary ban on mining
2
operations in District – Bellary.
• On 26.08.2011, this Court extended the temporary ban on
3
mining operations to Districts – Chitradurga and Tumkur.
• On 05.08.2011 and 26.08.2011, this Court directed the Indian
1
For short, “CEC”.
2
See State of Andhra Pradesh v. Obulapuram Mining Company (P) Ltd , 2011 (12) SCC
491.
3
See Samaj Parivartana Samudaya v. State of Karnataka , (2013) 8 SCC 209.
3
4
Council of Forest Research and Education to conduct a
macro-level environmental impact assessment, in
collaboration with domain experts to determine the extent of
environmental degradation due to illegal mining.
• On 14.08.2011, ICFRE submitted its report wherein it inter
alia recommended: (i) imposition of district-level
production ceiling; and (ii) preparation of Reclamation and
5
Rehabilitation Plans for each mining lease which apart from
prescribing actions for reclamation and rehabilitation works
would also prescribe a Maximum Permissible Annual
6
Production restricting the total quantity of iron ore that
could be produced at the specific mining lease.
• Based on ICFRE report and CEC’s recommendations, this Court
imposed differing production ceilings on mining leases in
the three districts, which have been enhanced from time to
time:
o vide order dated 13.04.2012, production ceiling of 25
7
Million Metric Tons was fixed on mines in the Bellary
District and 5 MMT in Tumkur and Chitradurga Districts;
o these caps were enhanced to 28 MMT for the Bellary
District and 7 MMT for Tumkar and Chitradurga Districts
vide order dated 14.12.2017; and
o these caps were further enhanced to 35 MMT for Bellary
District and 15 MMT for the Tumkar and Chitradurga
4
For short, “ICFRE”.
5
For short, “R&R Plans”.
6
For short, “MPAP”.
7
For short, “MMT”.
4
Districts vide order dated 26.08.2022.
• Vide report dated 03.02.2012, the CEC recommended the
categorization of the mines into Categories A, B and C based
on the severity of encroachment by the mines and overburden
dumps, determined in terms of the percentage in relation to
the total lease area. In such categorization, Category A
mining leases bear no/marginal illegality and Category C
mining leases stand in flagrant violation of laws.
• To strike a balance between environmental protection and
development, a central public sector undertaking – National
Minerals Development Corporation was allowed to operate two
mining leases in District – Bellary.
• Further, permission to sell old stock of iron ore by e-
auction was granted through a Monitoring Committee set up by
this Court.
• Vide report dated 13.03.2012, the CEC recommended the
implementation of R&R Plans, as a precondition to resumption
8
of mining operations. In due course of time, mining was
permitted to resume in specific Category A and B mines based
on the reports of the CEC and on judgments/orders of this
Court.
• Category C mining licenses were cancelled, and the proceeds
from sale of iron ore from Category C mines were ordered to
be forfeited to the State.
• Some of the Category C mining leases have been auctioned and
8
See this Court’s judgment/order dated 13.04.2012 where the Court directed the
implementation of R&R Plans in all the three categories of mines.
5
have subsequently commenced production. The new leaseholders
have undertaken to implement R&R Plans as a precondition to
commence operations.
• Vide order dated 28.09.2012, this Court constituted a
9
Special Purpose Vehicle , namely, Karnataka Mining
10
Environment Restoration Corporation to facilitate
ameliorative and mitigative measures around the mining
leases in the three districts.
• Vide order dated 21.04.2022, this Court constituted the
Justice B. Sudarshan Reddy Committee as an Oversight
11
Authority to oversee the work of the SPV.
Vide order dated 28.09.2022, this Court directed the Joint
•
Team to prepare sketches of 7 mining leases placed in
Category B-1.
The seven B-1 Category mining leases (listed below) lie
between the States of Karnataka and Andhra Pradesh. They require
demarcation on the ground.
| S.No | Lease | ML | Location | Exten | Village | Taluka | Divisio |
|---|
| . | Names | No. | | t in | | | n |
| | | | Ha. | | | |
| 1. | T. Narayan<br>Reddy | 252<br>7 | Sy. No.<br>01 | 32.65 | Thumati | Sandur | Bellary |
| 2. | N.<br>Rathnaiah | 670 | Sy. No.01 | 14.16 | Thumati | Sandur | Bellary |
| 3. | Hind<br>Traders | 254<br>8 | Sy. No.<br>01 | 19.63 | Vitalapur<br>a | Sandur | Bellary |
9
For short, “SPV”.
10
For short, “KMERC”.
11
For short, “Oversight Authority”.
| 4 | Mehaboob<br>Transport<br>Co. | 256<br>8 | Sy. No.<br>106 & 01<br>Vitalapur<br>a | 16.19 | Thumati<br>and<br>vitalapur<br>a | Sandur | Bellary |
|---|
| 5. | Vibhuti<br>Gudda<br>Mines<br>Private<br>Ltd. | 254<br>2 | Sy. No.<br>283 | 137.0<br>0 | Hunahalli | Bellar<br>y | Bellary |
| 6. | Suggallamm<br>a Gudda<br>Mining &<br>Co. | 254<br>1 | Sy. No.<br>90 | 10.11 | Bellagala | Bellar<br>y | Bellary |
| 7. | Bellary<br>Mining<br>Corporatio<br>n | 265<br>1 | Sy.No.<br>465 | 15.80 | Halakundi | Bellar<br>y | Bellary |
This Court’s order dated 28.09.2022, directing the Joint Team
to prepare sketches of these seven mining leases, was deferred till
the inter-state boundary was demarcated on the ground.
Vide letter dated 09.01.2023, the State of Karnataka informed
the CEC that inter-state boundaries between the states of Karnataka
and Andhra Pradesh had been fixed on the ground.
However, it is apparent that further work must be undertaken
at the ground level by deploying the total station survey method
along with the satellite images of the mining sites.
By letter dated 29.02.2024, the government of Andhra Pradesh,
had stated it would be represented by the following four officers,
as a part of the Joint Team which was directed to render support to
the CEC in surveying the seven mining leases:-
| S. No. | Name of the | Designation |
|---|
| Officer | |
| 1. | Sri Vineeth Kumar,<br>I.F.S. | Divisional Forest Officer,<br>Ananthapuramu |
| 2. | Dr. Rani Sushmita | Revenue Divisional Officer,<br>Kalyanadurgam |
|---|
| 3. | Sri Eslavath Rupla<br>Naik | Asst. Director Sruvey &<br>Land Records, Ananthapuramu |
| 4. | Sri Y. Nagaiah | District Mines and Geology<br>Officer, (FACT),<br>Ananthapuramu |
By letter dated 20.01.2023, the State of Karnataka stated that
it would be represented by the following three officers in the
Joint Team:
| S. No. | Name of the Officer | Designation |
|---|
| 1. | Sri T. Heeralal | Chief Conservator of<br>Forest, Ballari Circle<br>Ballari (Incharge<br>Working Plan Ballari) |
| 2. | Dr. Bagadi Goutham | IAS, Director, Mines and<br>Geology, Bengaluru |
| 3. | Sri Prashant Kumar<br>Thakur | IPS, Additional Director<br>General of Police,<br>Karnataka Lokayukta,<br>Bengaluru |
We clarify that if there is a change of the aforesaid named
officers of the States of Karnataka and Andhra Pradesh, the
replacement/designated officer would be co-opted in the Joint Team.
The CEC has requested the National Institute of Technology,
12
Suratkhal, Karnataka, to carry out the aforesaid survey at the
ground level, based on the total station method and satellite
images of the seven mining leases. The members of the ‘Joint Team’
will be associated and shall cooperate with representatives of NIT
Karnataka.
The survey will be undertaken for one mining lease at a time.
12
For short, “NIT Karnataka”.
8
The report will be submitted with the joint signatures of the
‘Joint Team’ to the states of Karnataka and Andhra Pradesh. A copy
thereof will be filed before this Court. The said exercise would be
completed no later than six months from today.
The CEC after receiving the survey/demarcation report will
issue notice to the respective lessees and pass appropriate orders.
This exercise will be undertaken even if the leases have expired in
the due course of time. Orders passed by the CEC will be
communicated to the parties, and a report will be filed before this
Court within a period of seven months from today.
The Monitoring Committee will also be associated with the
aforesaid exercise undertaken by the CEC, post the submission of
the survey/demarcation report(s).
The State of Karnataka will be empowered and entitled to
participate in the proceedings before the CEC and raise all
objections and contentions.
Re-list all pending applications in W.P.(C) no. 562/2009 and
768/2013 on 03.04.2024.
I.A. No. 225561 of 2023
MPAP and District-Level Production Ceiling
As noticed in the summary of developments above, this Court
had fixed a district-level production ceiling for all mining leases
in the Districts – Bellary, Tumkur and Chitradurga. These caps were
enhanced from time to time. The final enhancement of production
ceilings was done vide order dated 26.08.2022 whereby a production
ceiling of 35 MMT for Bellary District and 15 MMT for the Tumkar
9
and Chitradurga Districts was specified.
The district-level production ceilings apply to Category A and
Category B mining leases. Category ‘C’ mining leases were cancelled
and were thereafter e-auctioned, and hence are under a different
legal regime.
Parallelly, in its report dated 13.03.2012, the CEC fixed the
guidelines for the preparation and/or implementation of the R&R
Plans as a pre-condition to the resumption of mining in the three
districts. This was done given the devastation and degradation of
the environment on account of unregulated and illegal mining
activities. The objective of the R&R Plans is to:-
(a) carry out the time-bound reclamation and rehabilitation of
the areas found to be under illegal mining;
(b) ensure scientific and environmentally sustainable mining;
(c) ensure compliance with the various standards stipulated
under the environment/mining statutes; and
(d) regular and effective motoring, evaluation and corrective
measures.
As noticed above, the R&R Plans, together with specifying
actions to be undertaken for reclamation and rehabilitation works,
provided for an MPAP restriction for each mining lease. However,
the upper cap fixed at the district level is mandatory and binding.
This Court, vide judgment/order dated 14.12.2017, directed
that a production cap of the individual mining leases will be
regulated through the MPAP limits prescribed in the R&R Plans,
without reference to the upper or general cap fixed at the district
level.
10
The CEC states that the lease-wise R&R Plans have been
prepared for all mining leases, which have been submitted by the
Joint Team. It consists of two broad components: (a) R&R Plans for
areas found to be under illegal mining by the Joint Team and (b)
Supplementary Environment Management Plan. In addition,
13
Comprehensive Environment Plans for the Mining Impact Zone for the
areas surrounding the mining leases, would be prepared.
Accordingly, the CEC and CEPMIZ had proposed, and it was
accepted by this Court, that MPAP for each of the mining leases
should be implemented and executed. This figure may be
substantially lower than permissible limits specified under the
Environment Clearance, Approved Mining Plan, and/or the Consent to
Operate, granted for the respective mining leases. For the purpose
of feasible annual production, the following factors would be kept
in mind:-
(a) mineral reserves in the lease area;
(b) area available for overburden/waste dump(s) and subgrade
dump(s); and
(c) existing transport facilities vis-a-vis the traffic load
of the mining lease and adjoining mining leases.
The MPAP is the minimum of the quantity that may be feasible
based on the above three parameters. Further, if the total of the
lease-wise annual production from all the leases in the district
exceeds the ceiling limit fixed for a specific district, then the
MPAP for each mining lease was/is to be scaled down on a pro-rata
basis, to ensure that the district-level production ceiling is not
13
For short, “CEPMIZ”.
11
breached.
The aforesaid parameters were accepted by this Court by the
order dated 13.04.2012. We respectfully concur and state that these
directions shall continue.
Our attention has been drawn to the CEC report dated
14.07.2017 and the orders passed by this Court on 14.12.2017 and
26.08.2022.
Keeping in view the aforesaid position, we would request the
CEC, together with the Monitoring Committee and aid and advice of
the Oversight Authority, to undertake a complete exercise in the
three districts, and the respective mining leases situated therein,
and submit a report before this Court. While undertaking the said
exercise, they shall keep in mind the parameters referred to in the
report dated 13.03.2012. The CEC will be entitled to take help and
assistance of the scientific domain experts who will examine data,
including environmental pollution data available/recorded in the
districts from time to time.
A copy of the said report will be filed before this Court
within a period of four months from today. While submitting the
report, it shall also be examined whether sub-caps in particular
areas should be fixed or caps should be increased or decreased. In
other words, the CEC will also examine whether a mining cap must be
imposed in an area for better compliance and regulation.
Further, the CEC, the Monitoring Committee and the Oversight
Authority will examine whether any form of regulation like e-
auctioning is required to be put in place for the sale of the mined
material. While examining this question, they will take into
12
consideration the data with regard to the royalty and other cess
etc., which were recovered when e-auctioning was mandatory and post
the order dated 20.05.2022, whereby private sales have been
permitted.
The question of whether satellite mappings/images should be
undertaken with regard to each mine for the purpose of ascertaining
the mining activities including the sale and disposal of the waste
etc., will be examined by the CEC, the Monitoring Committee and the
Oversight Authority.
The CEC, the Monitoring Committee and the Oversight Authority
will be entitled to examine any other aspect, which they feel is
relevant for consideration of the issues and questions referred to
them.
In view of the directions given today, the application in I.A
No. 225561 of 2023 shall await the report of the CEC. Accordingly,
the application is not finally decided.
I.A. No.183 of 2013
It is stated by the learned counsel for the applicant(s) that
in view of the subsequent development, the present application has
become infructuous.
In view of the statement made, the present application is
dismissed as infructuous.
I.A. No. 189 of 2013
None is present to press the present application.
Accordingly, the present application is dismissed in default.
13
I.A. No. 191 of 2013
It is stated by the learned counsel for the applicant(s) that
the present application, which was filed as a contempt petition,
has become infructuous, as the petitioner has filed a substantive
writ petition and other proceedings.
In view of the statement made and without commenting on the
merits, the present application is dismissed.
I.A. No. 203 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No. 204 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No. 213 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No. 214 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No.222 of 2014 in I.A. No. 214 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No. 226 of 2014
None is present to press the present application.
14
Accordingly, the present application is dismissed in default.
I.A. No.228 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No. 229 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No.232 of 2014
The CEC, in consultation with the Monitoring Committee, will
file their report on the assertions and prayer made in the present
application, within a period of six weeks from today.
Liberty is granted to the State of Karnataka to file their
reply/response within six weeks to the present application.
Reply/response to the report will be filed within period of
six weeks from the date of service of the report.
The application is not disposed of today.
I.A. No. 234 of 2014
None is present to press the present application.
Accordingly, the present application is dismissed in default.
I.A. No.124132 of 2022
The CEC, in consultation with the Monitoring Committee, will
file a status report to the assertions and prayer made in the
present application. The application is not disposed of today.
15
I.A. No. 21884 of 2020
The CEC, in consultation with the Monitoring Committee, will
file a status report on the assertions and prayer made in the
present application, within a period of six weeks from today.
The application is not disposed of today.
I.A. No.149994 of 2018
We are not inclined to accept the prayer(s) made in the
present application by the applicant – National Mineral Development
14
Corporation Limited in view of specific orders passed by this
Court on 23.09.2011, and subsequent order dated 28.09.2012.
It is to be noted that the applicant – NMDC, by a subsequent
order dated 22.02.2023, was directed a refund of 10% of the sale
proceeds, deposited towards SPV w.e.f 01.01.2019 onwards. This
order, according to us, balances out the equities and hence, the
prayer for reducing the amount to be deposited towards the SPV from
10% for the period prior to 31.12.2018, is rejected. We clarify
that the applicant – NMDC will be liable to pay contribution to the
SPV at the rate of 10% of the sale proceeds w.e.f 01.01.2019 and
thereafter. Any excess amount above 10%, collected/paid by the
applicant – NMDC, on and with effect from 01.01.2019 will be
refunded to them by the Monitoring Committee within a period of six
weeks from today.
Accordingly, the present application is disposed of.
I.A. Nos. 43677/2024 and 52570/2024
I.A. no. 52570/2024 seeking permission to file application for
14
For short, “NDMC”.
16
directions is allowed.
I.A. no. 43677/2024 has been filed seeking certain directions.
We are not inclined to grant any relief to the applicant(s)
and hence, the application is disposed of.
I.A. No. 233 of 2014 and I.A. No. 235 of 2014 in I.A. No. 233 of
2014
Learned counsel for the applicant(s) states that the present
applications have become infructuous.
In view of the statement made, the applications are dismissed
as infructuous.
I.A. No. 217 of 2014
Learned counsel for the applicant(s) seeks permission to
withdraw the present application.
In view of the statement made, the application is dismissed as
withdrawn.
I.A. No. 190 of 2013
Learned counsel for the applicant(s) states that he is
satisfied with the orders dated 09.12.2013 and 06.01.2014. He
states that in view of the said orders, the application may be
disposed of.
In view of the statement made, the application will be treated
as disposed of.
I.A. No. 212 of 2014
We are not inclined to examine the merits of the said
application in view of the notification/corrigendum dated
17
04.08.2014. In case the said notification/corrigendum is set aside
or modified, it will be open to the applicant(s) to raise pleas and
contentions before this Court or before the High Court.
All pending applications in I.A. no. 212/2014 shall stand
disposed of.
I.A. No. 208 of 2014
We are not inclined to examine the merits of the assertions
made in the application, as the issue involved is rather secondary
to the issue pending consideration in W.P.(C) no. 562/2009. In
case the applicant(s) has any grievance or issue, it will be open
to the applicant(s) to file appropriate proceedings before the
jurisdictional High Court or any other authority.
The stay order passed by this order on 10.02.2014 will
continue for a further period of two months in order to enable the
applicant(s) to take steps in accordance with law.
We clarify that we have not made any comments either way on
the merits.
The application is disposed of.
I.A. No. 197 of 2013
This application has become infructuous and is dismissed as
such.
It will be open for the applicant(s) to press for hearing of
SLP(C) nos. 1684/2017 titled “ Dhruvdesh Metasteel Pvt. Ltd. v.
Kiocl Ltd. & Ors. ” and 6854/2017 titled “ M. Babanna v. Kiocl Ltd. &
Ors. ”, before the appropriate Bench.
18
I.A. No. 160407 of 2022
Arguments have been addressed by the learned counsel for the
applicants. The issue is whether a 10% levy imposed on the sale of
the iron ore and transferred to the SPV for implementing the
CEPMIZ, in terms of the judgment/order of this Court dated
15
13.04.2012 , should be discontinued.
It has been pointed out that Rs.24,464 crores are available to
the SPV, namely, KMERC, which is to prepare and implement the
CEPMIZ to mitigate the environmental damage in the Mining Impact
16
Zone in the three districts.
Our attention has been drawn to the judgment of this Court
17
dated 21.03.2017, wherein a similar plea upon being raised, was
considered, but rejected by this Court, observing that CEPMIZ is a
scheme, which can be divided into two broad categories: (i) socio-
economic development; and (ii) integrated mining and railway
infrastructure, industrial infrastructure and medical
infrastructure. The said order noted that the total cost of
implementation of the CEPMIZ over a period of ten years was
Rs.15,742.35 crores. The prayer was rejected, observing that at
that stage, the CEPMIZ was a vision document with all concrete
measures, steps and proposals left to be worked out at a later
stage, that is, the stage of the preparation of the Detailed
18
Project Report . We would like to reproduce a portion of the said
judgment:
15
(2013) 8 SCC 213.
16 For short, “MIA”.
17
(2017) 5 SCC 434.
18
For short, “DPR”.
| “15. What had happened in Bellary, Chitradurga and | |
|---|
| Tumkur, has already been noticed by this Court in | |
| para 37 of the judgment dated 18-4-2013 [Samaj | |
| Parivartana Samudaya v. State of Karnataka, (2013) 8 | |
| SCC 154] i.e. systematic, extraordinary and | |
| unprecedented plunder of the natural wealth and | |
| environment. This Court has specifically observed in | |
| para 37 that: (Samaj Parivartana case [Samaj | |
| Parivartana Samudaya v. State of Karnataka, (2013) 8 | |
| SCC 154] , SCC p. 187) | |
| “37. … The situation being extraordinary the remedy, | |
| indeed, must also be extraordinary.” | |
| (emphasis supplied) | |
| |
| It is to deal with such an extraordinary situation |
| that the necessity of CEPMIZ and implementation |
| thereof by a special purpose vehicle out of funds in |
| credit with the Monitoring Committee was |
| contemplated. The special funds in deposit with the |
| Monitoring Committee being the proceeds of illegal |
| mining were meant to be deployed for re-creation of |
| what had been lost due to such illegal activities. It |
| is for the aforesaid purpose that CEPMIZ was required |
| to be drawn up and thereafter implemented. The state |
| of implementation of the Scheme has not yet |
| commenced. Funds in huge proportions would be |
| necessary. A full and clear picture is yet to emerge. |
| In a situation lessees who may be even remotely |
| connected with the degradation and destruction of |
| nature must continue to pay their share in the |
| process of restitution by contributing to the |
| Monitoring Committee from their present sale |
| proceeds. Even the new lessees who may not have been |
| involved with such degradation are contributing to |
| the process of reclamation and restoration. In such a |
| situation, we do not see how we can vary or modify |
| our earlier orders that require all existing lessees |
| to pay 10% of the sale proceeds and/or to depart from |
| the requirement of payment of what has been already |
| ordered, namely, 10% of the sale proceeds to the |
| Monitoring Committee/SPV.” |
The Court did not make comments on the CEPMIZ, except to state
that insofar as socio-economic measures are concerned, different
heads under which restoration and implementation work was proposed
to be done, details thereof were to be worked out. It is to be
noted that at that stage, funds to the extent of Rs.10,336 crores
were available.
This aspect was again examined in the order dated 21.03.2018
20
on an application filed by the Federation of Indian Mineral
19
Industries, Southern Region enclosing therewith reports of the CEC
dated 19.03.2018. In this report, the CEC, with reference to the
CEPMIZ, had suggested submission of a project report by KMERC
indicating very broadly, different facets of the CEPMIZ, the work
to be undertaken and the cost, which is reasonably expected to be
incurred. Accordingly, this Court rejected the prayer made in the
application, and stated that the same would be considered
subsequently. Directions were issued to KMERC to prepare and
submit within six months, a revised comprehensive proposal of
socio-economic development and eco-restoration including those
relating to road infrastructure with short-term and long-term
targets and study relating to the railway backbone required to
support the mining activity, as suggested by certain
authorities/experts.
This Court, in the order dated 21.04.2022, granted in-
principle approval to the CEPMIZ submitted by the State of
Karnataka, as recommended by the CEC in its reports dated
22.10.2018 and 16.04.2019. However, this order also records that
the parties are at liberty to place any objections or submissions
before the Oversight Authority with regard to the CEPMIZ. The
order states that the Oversight Authority shall decide the
objections or suggest modifications after hearing the parties and
taking assistance of any expert including the CEC, as may be
required. Further, if any clarification is required, the parties
were granted liberty to approach this Court.
19
For short, “FIMI, South”.
21
The Oversight Authority constituted by this order was to
oversee the works and progress being carried out by KMERC.
Our attention was also drawn to the report of the CEC, dated
10.04.2022, which states that the SPV amount maintained by the
Monitoring Committee exceeds Rs.20,000 crores as of 31.03.2022.
This amount including the interest, which will accrue, would be
adequate to meet the expenses incurred with the activities proposed
to be undertaken under the CEPMIZ. This report recommends that 10%
of the sale value (20% of the sale value from NMDC) being
contributed towards the SPV, may be discontinued.
At this stage, we may record that this Court vide order dated
22.02.2023, reduced the contribution of NMDC to the SPV from 20% to
10% w.e.f. 01.01.2019 and accordingly, an amount of Rs.1,326 crores
has been refunded to them.
As per the figures placed before us, the CEPMIZ Plan, as
provisionally approved by this Court, states that a tentative
expenditure of nearly Rs.25,000 crores is likely to be incurred for
various sectors, as tabulated below:-
| S.No. | Sector/Districts | Bellary(Rs. | Chitradurga | Tumkur | Total |
|---|
| | Cr.) | (Rs. Cr.) | (Rs. Cr.) | (Rs. Cr.) |
| 1 | Eco-Restoration | 1584.79 | 555.64 | 515.23 | 2655.75 |
| 2 | Agriculture &<br>allied | 881.93 | 391.04 | 330.08 | 1603.05 |
| 3 | Drinking Water,<br>Sanitation &<br>Rural Roads | 3464.70 | 978.68 | 486.52 | 4929.90 |
| 4 | Health | 1450.17 | 255.94 | 209.67 | 1915.78 |
| 5 | Education | 643.49 | 330.58 | 192.28 | 1166.35 |
| 6 | Development of<br>vulnerable<br>sections | 695.60 | 188.54 | 198.42 | 1082.56 |
| 7 | Housing | 1027 | 106.88 | 60 | 1193.88 |
|---|
| 8 | Skill<br>Development | 436.19 | 70.79 | 31.27 | 538.25 |
| 9 | Tourism | 148 | 34 | 7 | 189 |
| 10 | Irrigation | 799 | 154.70 | 53 | 1006.70 |
| 11 | Physical<br>Infrastructure | 734.99 | 105.29 | 44.08 | 884.36 |
| 12 | Roads &<br>Communication | 1512.55 | 620.22 | 426.40 | 2559.17 |
| 13 | Railway<br>Infrastructure | | | | 5271.96 |
| Grand Total | 13378.41 | 3792.30 | 2554.05 | 24996.71 |
The total expenditure to be incurred on the projects, which
stand approved, is about Rs.7,000 crores.
It is an accepted and admitted position that in respect of 51
Category C mining leases, ICFRE had approved R&R Plans of 28
leases. In respect of the remaining 23 leases, inputs have not
been provided to ICFRE to approve the R&R Plans. It is also stated
that 23 lessees of Category C have not submitted any data. In
three cases, R&R Plans submitted have not been approved by the CEC.
We do not think, at this stage, it will be appropriate to
withdraw the 10% levy imposed by this Court in terms of the order
dated 13.04.2012, as the CEPMIZ Plan is still at the initial stage
of execution. The proposed plan was provisionally approved by this
Court only vide order dated 21.04.2022. Objections and suggestions
have been invited and are pending consideration by the Oversight
Authority. This apart, we feel certain directions are required to
be given for preparation of R&R Plans and execution thereof in
respect of Category C leases, which were terminated/cancelled, but
thereafter no progress has been made for submission of the plans or
23
execution or implementation of R&R Plans.
Accordingly, we deem it appropriate to direct the Principal
20
Chief Conservator of Forests , State of Karnataka to undertake a
detailed scrutiny and survey of all Category C mines, where data
and R&R Plans have not been submitted and submit R&R Plans after
conducting their scrutiny and survey. PCCF, Karnataka will be
entitled to procure assistance from domain experts, specialized
agencies or institutions. The cost incurred will be paid in the
interim from the funds available with the SPV. The R&R Plans will
be thereupon implemented and executed either through KMERC or if
more appropriate, through any other agency, which may be nominated
for this purpose after moving an application before this Court by
the CEC, the Monitoring Committee, and the Oversight Authority.
The directions given above will equally apply to other cases
of Categories A and B mines, where R&R Plans have not been
submitted or approved.
The amount incurred for R&R Plans must be collected from the
erstwhile Category C lease holders or the Category A and B lease
holders, as appropriate. The amount will be collected as arrears
of land revenue. However, no amount shall be refunded to the new
lease holders. The amount collected will be deposited with the SPV.
I.A. No. 41984/2023
This application has become infructuous and is disposed of.
We clarify that the applicant will be entitled to file a fresh
application after this Court has received a report from the CEC in
20
For short, “PCCF”.
24
terms of the directions given above.
I.A. Nos.17247/2020 and 17249/2020 and 17250/2020
I.A. nos. 17247/2020 seeks permission to file application for
impleadment and 17249/2020 seeks impleadment. I.A. no. 17250/2020
has been filed seeking certain directions.
We see no reason to grant the prayer in the applications
seeking directions to shift the category of the applicant from
Category C to B. We have also examined the CEC report no. 23 of
2022.
All the applications accordingly stand dismissed.
In view of the aforesaid, I.A. Nos. 121324/2022, 121326/2022,
and I. A. No. 173897/2022 (Application for Additional Documents)
shall also stand disposed of.
I.A. No. 21886 of 2020
We are not inclined to accept the prayer made in the present
application in view of the facts and hence, the same is dismissed.
I.A. No. 172166/2023
We are not inclined to accept the prayer made in the present
application in view of the facts and hence, the same is dismissed.
I.A. 49701 in W.P.(C) No. 768/2013
The application is not taken up for hearing today.
Writ Petition No. 505 of 2020
Learned counsel appearing on behalf of respondent no. 2 –
State of Karnataka has drawn our attention to the order dated
25
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28.09.2022 passed in “M/s Arjun Ladha v. The State of Odisha” . The
said order specifically refers to the present Writ Petition(C) No.
505 of 2020.
The period of the lease has expired by flux of time. We do not
think any relief can be granted to the petitioner(s) in the present
writ petition, and the same is dismissed.
It is stated by the learned counsel for the petitioner(s) that
the petitioner(s) would like to challenge the fresh auction. It
will be open to the petitioner(s) to challenge the fresh auction in
accordance with law. However, we make no comments either way in
this regard.
Pending application(s), if any, shall stand disposed of.
.....................J.
(SANJIV KHANNA)
.....................J.
(M.M. SUNDRESH)
.....................J.
(BELA M. TRIVEDI)
NEW DELHI;
MARCH 14, 2024.
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Writ Petition (C) No. 539 of 2022.