The High court on Friday granted stay to the Karnataka Forest (Amendment) Act, 2016 which was notified by the state government on July 27, 2016 directing mining companies to pay ‘forest development fee’ (FDF). A division bench comprising Chief Justice S K Mukherjee and Justice Ravi Malimath, however, directed the mining companies to pay 25% of the total amount that has to be paid as FDF as bank guarantee.
Vedanta Ltd and other mining companies filed a batch of petitions challenging the validity of the Karnataka Forest (Amendment) Act, 2016. The petitioners have contended that the legislature cannot interpret the law and change of nomenclature of the words, ‘Tax’ to ‘Fee’ and collect charges. They sought directions to strike down the Act.
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