Gujarat High Court

Unilateral closure of e-royalty accounts without statutory compliance under Mineral Prevention Rules is legally unsustainable.

VAGHERA DEVJIBHAI NATHABHAI vs STATE OF GUJARAT

Gujarat High CourtJUDGMENT: May 01, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner was granted a quarry lease (QL 0108041914) for mining ordinary sand in Jamnagar for three years starting 09.06.2017

Source reference: p. 2

Following government notifications in 2018 and 2022 amending the Concession Rules, the petitioner’s lease was purportedly extended until 31.03.2025

Source reference: p. 3

Respondent No. 3 (Geologist) closed the petitioner’s ATR/e-royalty account without prior notice and issued a communication dated 25.01.2024 stating the lease had expired on 08.06.2022

Source reference: p. 3

The petitioner challenged this communication and sought the unlocking of the e-royalty portal

Source reference: p. 2
02

Issues

1. Whether the action of the respondent authorities in closing the online ATR/e-royalty account without notice was in violation of Rule 5(4) of the Gujarat Mineral (Prevention of Illegal Mining, Transportation and Storage) Rules, 2017

Source reference: p. 3

2. Whether the petitioner is entitled to the restoration of mining activities based on the alleged extension of the lease period

Source reference: p. 3-4
03

Law Applied

Gujarat Minor Mineral Concession Rules, 2010/2017, and specifically Rule 5(4) of the Gujarat Mineral (Prevention of Illegal Mining, Transportation and Storage) Rules, 2017, which governs the procedure for monitoring and regulating mineral accounts

Source reference: p. 1, 3

Judicial precedent set by a Co-ordinate Bench of the Gujarat High Court in Special Civil Application No. 10012 of 2024 (decided 08.08.2024), which addressed identical legal challenges regarding the expiration of leases and the closure of royalty portals

Source reference: p. 4
04

Reasoning

The court evaluated the petitioner’s claim that the administrative action was proceduraly flawed under the 2017 Rules

Source reference: p. 3

the court found that the central legal issue—concerning the validity of lease extensions and the authority's right to lock e-royalty accounts upon lease expiration—had already been adjudicated by a Co-ordinate Bench in a recent, identical matter (SCA No. 10012/2024)

Source reference: p. 4

Referring to paragraphs 5, 6, and 25 of that precedent, the court determined that the petitioner’s situation lacked a distinct legal ground to merit a departure from the previous ruling

Source reference: p. 4

Consequently, the court held that the petitioner failed to establish any infirmity or illegality in the Geologist’s communication that would justify judicial interference under Article 226

Source reference: p. 4
05

Holding

The court concluded that no ground was available to the petitioner to challenge the impugned action in light of the settled precedent

The petition was dismissed, and the Rule was discharged. No orders as to costs were made

Source reference: p. 4
Gujarat High Court

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VAGHERA DEVJIBHAI NATHABHAIvsSTATE OF GUJARAT

Gujarat High Court · May 01, 2026

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