Grant of mining NOC for government land without transparent public notice or competitive bidding is arbitrary and violates Article 14.

The litigation involves multiple writ petitions concerning the issuance of No Objection Certificates (NOC) for quarrying operations on Government puramboke land in Vagamon Village, Idukki District.

Anish Abraham (petitioner in WP(C) 12096/2021) was granted an NOC for 5 hectares in 2018.

Karuvakunnel Enterprises challenged this grant, alleging a lack of transparency and failure to notify the public.

Subsequently, the District Collector cancelled an extension of time previously granted to Abraham.

During the pendency of these cases, the Government of Kerala issued G.O.(Ms) No. 28/2021/RD, mandating e-auctions for mining leases on Government land.

Furthermore, reports from the Revenue, Tourism, and Environment Departments highlighted that Vagamon is a sensitive "tourism hotspot" where mining poses a threat to ecological stability and local livelihoods.

1. Whether an applicant for a quarrying lease on Government land can claim a "preferential right" under Rule 31 of the KMMC Rules, 2015, solely by being the first to apply, in the absence of a public notification.

2. Whether the grant of an NOC for mining on Government property without a transparent public process or auction violates Article 14 of the Constitution of India.

3. Whether the State, under the Doctrine of Public Trust, is duty-bound to prohibit mining in ecologically fragile and tourist-significant areas like Vagamon.

The court applied Rule 31 of the Kerala Minor Mineral Concession Rules, 2015, which provides a preferential right to the earliest applicant.

However, this was subordinate to Article 14 of the Constitution, which prohibits the arbitrary grant of Government largesse, as established in Ramana Dayaram Shetty v. International Airport Authority of India and Kasturi Lal Lakshmi Reddy v. State of J&K, requiring the State to act fairly and obtain the best consideration for public property.

The court also invoked the "Doctrine of Public Trust" from M.C. Mehta v. Kamal Nath, asserting that natural resources are held by the State as a trustee for the public.

The "Precautionary Principle" from M.C. Mehta v. Union of India, which prioritizes environmental protection over economic interests in cases of doubt.

The Court reasoned that Rule 31 of the KMMC Rules cannot be invoked to create a "seniority" right for a private individual when the Government has not issued a public notification for the land's use; doing so would allow the State to "gift" property arbitrarily.

Applying Ramana Dayaram Shetty, the Court found that the District Collector’s grant of NOC to Abraham was "absolutely arbitrary" because it was done on "mere asking" without a transparent bidding process or public notice.

Furthermore, linking the facts to the Doctrine of Public Trust, the Court observed that Vagamon's "pristine beauty" and status as a biodiversity hotspot make it a resource the State must protect rather than alienate for private commercial use.

The Court relied on the reports from the Tourism and Revenue Departments, which confirmed that mining would cause "irreversible damage" to the ecosystem and the local economy.

It specifically held that the NOC granted to Anish Abraham was invalid as it was issued without following any transparent procedure.

The Court directed the Government of Kerala (Respondents 1 and 2) to finalize proceedings to formally ban all quarrying operations in the Vagamon area within four months.

In the interim, the Court issued a prohibitory injunction restraining the authorities from granting any further mining permissions in the Vagamon region to ensure the preservation of the landscape in its natural state.