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  • CEC report, as indicated in the table at p. 40
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • CEC report, as indicated in the table at p. 40
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The Central Empowered Committee (CEC) submitted a report dated 29-8-2012 concerning the implementation of Rehabilitation & Reclamation (R&R) Plans and the possible resumption of mining operations in 18 “Category ‘A’” iron-ore mining leases situated in Bellary, Tumkur and Chitradurga Districts of Karnataka. By prior Supreme Court orders dated 29-7-2011 and 26-8-2011, mining in these districts—save for two National Mineral Development Corporation (NMDC) leases—had been completely banned because of large-scale environmental violations. In light of the new CEC report, the Court heard the Amicus Curiae and counsel for various stakeholders, accepted the CEC’s recommendations (subject to future modification), and issued the present directions regarding partial lifting of the ban.

Legal Issues Presented

The opinion addresses a procedural matter and does not frame distinct legal issues.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Order dated 29-7-2011, (2011) 12 SCC 491 Earlier blanket ban on mining operations in Bellary, Tumkur and Chitradurga (except two NMDC leases). The present order lifts that ban for 18 Category ‘A’ leases.
Order dated 26-8-2011, (2013) 8 SCC 209 Continuation of the mining ban imposed on 29-7-2011. Ban modified: mining may now resume in the specified 18 leases.
Jambunathanahalli Temple case (citation not provided) Separate Supreme Court directions requiring stoppage of mining in certain leases. Six of the 18 leases remain subject to any future orders in that case.
Muneer Enterprises v. Ramghad Mineral & Mining (P) Ltd., (2012) 12 SCC 722 Status-quo order affecting lease ML-2010 (RMML/Dalmia). Resumption for that lease permitted only if consistent with further orders in this matter.

Court's Reasoning and Analysis

The Court reasoned that the CEC’s fact-finding and environmental audit justified a conditional reopening of mining activities. Key analytical steps were:

  • Acceptance of Expert Recommendations: The CEC confirmed that all 18 Category ‘A’ leases either already possessed, or were likely soon to possess, the necessary statutory clearances and had begun implementing approved R&R Plans. The Court therefore accepted the CEC report, reserving power to modify it later.
  • Lifting of the Ban: The earlier absolute prohibition on mining was lifted for these leases only, enabling production up to the annual limits fixed by the CEC.
  • Conditional Framework: Resumption is expressly contingent on (i) possession and continual validity of all statutory permissions, (ii) the Monitoring Committee’s written satisfaction with R&R implementation, (iii) written undertakings to comply with the Supplementary Environment Management Plan and any future Comprehensive Environment Plan for the Mining Impact Zone, and (iv) a post-commencement CEC inspection report to be filed within one month.
  • Enforcement Mechanism: Any lapse in statutory compliance or R&R implementation empowers the Monitoring Committee and CEC to suspend operations and report back to the Court.
  • Ongoing Investigations Unaffected: The Court emphasised that permission to mine does not impede ongoing or future criminal or civil investigations against any leaseholder; investigation reports must still be filed before the Court.
  • Special Conditions for Six Leases: Additional caveats apply to six leases that are subject to parallel proceedings (e.g., Jambunathanahalli Temple case, Muneer Enterprises case) or specific CEC-stipulated conditions.

Holding and Implications

HOLDING: The interlocutory applications for reopening Category ‘A’ mines are DISPOSED OF; the mining ban is PARTIALLY LIFTED for 18 specified leases subject to stringent statutory, environmental and monitoring conditions.

Implications: The decision immediately allows controlled resumption of iron-ore mining in Karnataka’s Category ‘A’ leases, restoring economic activity while embedding a robust compliance and oversight framework. It has direct effect only on the enumerated leases and does not establish a broad legal precedent on mining regulation.

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    Samaj Parivartana Samudaya And Others v. State Of Karnataka And Others

    Aftab Alam, J.— The Central Empowered Committee has submitted a Report dated 29-8-2012 regarding implementation of the R&R Plans, resumption of mining operations in the Category ‘A’ mining leases and issues incidental thereto.

    2. Heard Mr Shyam Divan, the learned Amicus Curiae, Mr Prashant Bhushan, appearing for the applicant in IA No. 68 of 2012, Mr Krishnan Venugopal appearing for M/s R. Parveen Chandra, Mr C.U Singh, learned Senior Counsel appearing for the Association of Indian Mini Blast Furnaces and the other learned counsel.

    3. The recommendations made in the aforesaid Report of CEC dated 29-8-2012 are accepted subject to any modification that the Court may feel necessary to make later on.

    4. At Annexure R-1 to the report, there is a list of 16 Category ‘A’ mining leases in Bellary District and two in Chitradurga District in respect of which the R&R Plans have been approved. One of the 18 Category ‘A’ mines, namely, MEL (ML-2346) (103.81 ha) has all the statutory sanctions, permissions and approvals in place and the rest of the 17 mining leases, according to CEC, are also likely to get all the statutory sanctions, permissions and approvals within a few months as indicated in the table at pp. 15 and 16 of the report. It is also stated in the report that the R&R Plan in respect of the 18 Category ‘A’ mines has been duly approved and its implementation on the ground has also commenced.

    5. In the light of the recommendation of CEC, the ban imposed on mining operations in all the mining leases (excepting two mining leases of M/s NMDC Ltd.) in the districts of Bellary, Tumkur and Chitradurga by orders dated 29-7-2011 (2011) 12 SCC 491 and 26-8-2011 (2013) 8 SCC 209 is lifted in respect of the 18 Category ‘A’ mines as enumerated in Annexure R-1 to the report. Mining operations in those 18 Category ‘A’ mines may commence to the extent of the permissible annual production as determined by CEC and as indicated in the table at pp. 15 and 16 of the report.

    6. The commencement of the mining operations shall be subject to:

    6.1 Compliance with all the statutory requirements.

    6.2 The full satisfaction of the Monitoring Committee, expressed in writing, that steps for implementation of the R&R Plan in the leasehold area are proceeding effectively and meaningfully.

    6.3 A written undertaking by the leaseholders that they would fully abide by the Supplementary Environment Management Plan (SEMP) as applicable to the leasehold area and shall also abide by the Comprehensive Environment Plan for Mining Impact Zone (Cepmiz) that may be formulated later on and comply with any liabilities, financial or otherwise, that may arise against them under Cepmiz.

    6.4 CEC shall, upon inspection, submit a report to this Court that any or all the stated 18 Category ‘A’ mine-owners have fully satisfied the abovementioned conditions. Further, it shall be reported that the mining activity is being carried on strictly within the specified parameters and without any violation. Such report should be filed within one month of leave to commence mining activity by the leaseholder concerned.

    7. It is made clear that no mining operation under any of the mining leases shall take place unless all the statutory sanctions, permissions and approvals are subsisting. In case, after the resumption of mining operations in terms of this order any statutory sanction, permission or approval is lapsed or is not renewed in time, the mining operations would remain stopped until the required statutory sanction, permission or approval is duly granted.

    8. Similarly, in case the Monitoring Committee finds any slackness in the implementation of the R&R Plan in leasehold area under a mining lease, the Monitoring Committee shall apprise CEC in that regard and it would be open to CEC to direct suspension of the mining operations under the mining lease concerned and to report the matter to this Court.

    9. Among the 18 Category ‘A’ mines, there are six mining leases to which the general directions given above shall apply subject to further conditions as indicated below:

    9.1 In the case of mining lease, namely, RBSSN (ML-2576) (31.56 ha), mining operations are stopped in terms of the orders passed by this Court in Jambunathanahalli Temple case. Further, in the case of this mining lease, if CEC wishes to re-examine whether it falls in Category ‘A’ or any other category, the directions given above in this order shall apply in the case of this mining lease subject to its retaining its position in Category ‘A’ and further subject to any orders passed by this Court in Jambunathanahalli Temple case.

    9.2 In the case of three other mining leases, namely, Kariganur Minerals (ML-2075/1799) (199.43 ha), RBSSN (ML-2524) (76.09 ha), RBSSN Beneficiation Plant, mining operations are stopped in terms of an order passed by this Court in Jambunathanahalli Temple case. Therefore, the above directions shall apply to these three mining leases subject to the further orders passed by this Court in Jambunathanahalli Temple case.

    9.3 In mining lease, namely, RMML (Dalmia) (ML-2010) (331.ha), an order to maintain status quo has been passed by this Court in Muneer Enterprises v. Ramghad Mineral & Mining (P) Ltd. (2012) 12 SCC 722 (1) Therefore, the above directions shall apply to this mining lease subject to any further order passed by this Court in Muneer Enterprises v. Ramghad Mineral & Mining (P) Ltd., SLP (C) No. 32226 of 2009

    9.4 In mining lease, namely, MML-Timmappanagudi (ML-2605) (136.97 ha), the general directions given above, shall apply subject to the leaseholder abiding by the conditions stipulated in the CEC report, as indicated in the table at p. 40 of the report.

    10. Among the 18 Category ‘A’ mining leases M/s R. Parveen Chandra (ML-2294) is cited as an accused in a criminal case registered as PCR No. 4 of 2011, renumbered as Special CC No. 171 of 2011. Needless to say that the investigation of the case shall proceed in accordance with law and the permission for resumption of mining operations shall have no effect on the pending investigation.

    11. It is made clear that the permission for resumption of mining operations shall not come in the way, in any manner whatsoever, in any investigation, inquiry or proceedings that may be pending against any of the 18 mining leases covered by this order or that may be instituted against any one of them in future. The report of investigation, inquiry or proceeding in respect of any of the 18 leases should also be submitted before this Court.

    12. The interlocutory applications relating to the opening up of the Category ‘A’ mines are disposed of.

    13. Put up the Report of the Central Empowered Committee dated 3-2-2012 at an early date to expedite framing of the Comprehensive Environment Plan for Mining Impact Zone and matters related thereto.

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    Samaj Parivartana Samudaya And Others v. State Of Karnataka And Others
    (Sep 3, 2012)