SC raps Karnataka for allowing mining lease transfer by firm

 The Supreme Court today came down heavily on Karnataka government and its Director of Mines and Geology for allowing transfer of mining lease by M/s Dalmia Cements (Bharat) Limited to another firm despite surrendering it way back in 1999.

"In this context, it will be more relevant to state that mines and mineral being national wealth, dealing with the same as the largesse of the state by way of grant of lease or in the form of any other right in favour of any party can only be resorted to strictly in accordance with the provisions governing disposal of such largesse and could not have been resorted to as has been done by the State Government and the Director of Mines and Geology of the State of Karnataka by passing the order of transfer dated March 16, 2002.

"Such a conduct of the State and its authorities are highly condemnable and, therefore, calls for stringent action against them," a bench of justices F M I Kalifulla and Shiva Kirti Singh said.

The bench said that it was "convinced" that when M/s Dalmia Cements (Bharat) Limited surrendered 196.58 hectares of land out of the leased area of 331.50 hectares to the forest department of its mining block in Bellary District and it was accepted by the State Government, the firm loses "legal right" over it.

The state Government or its authority also cannot to consider the plea for transfer of leased area at the instance of the firm.

"In the light of our above answers to the various questions posed for consideration, we hold that the subsequent stage-I in-principle approval dated 13.09.2006 and the final approval dated 09.09.2010 based on the acceptance of the transfer of lease in the order dated 16.03.2002 cannot survive and the same are set aside...," it said.
The court was hearing the appeal filed by M/s Muneer Enterprises against the 2009 judgment of the Karnataka High Court by which the transfer of mining lease from original licencee M/s Dalmia Cements to M/s Ramgad Minerals and Mining Ltd) was set aside.