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Illegal Mining in Goa: Second renewal of mining leases granted in violation of Goa Foundation case quashed

Supreme Court: Showing dismay over large-scale illegal mining of iron ore and manganese ore in the State of Goa, the bench of Madan B. Lokur and Deepak Gupta, JJ issued several directions to ensure implementation of mining related environment protection laws and said:

“For the State to generate adequate revenue through the mining sector and yet have sustainable and equitable development, the implementation machinery needs a tremendous amount of strengthening while the law enforcement machinery needs strict vigilance. Unless the two marry, we will continue to be mute witnesses to the plunder of our natural resources and left wondering how to retrieve an irretrievable situation.”

Clarifying the directions issued by the Court in Goa Foundation v. Union of India, (2014) 6 SCC 590, on 21st April 2014, the Bench said that as per the said decision, the State of Goa was obliged to grant fresh mining leases in accordance with law and not second renewals to the mining lease holders. Also, the State of Goa was not under any constitutional obligation to grant fresh mining leases through the process of competitive bidding or auction.

The Court noticed:

“The second renewal of the mining leases granted by the State of Goa was unduly hasty, without taking all relevant material into consideration and ignoring available relevant material and therefore, not in the interests of mineral development. The decision was taken only to augment the revenues of the State which is outside the purview of Section 8(3) of the MMDR Act.”

The Bench also clarified that the Ministry of Environment and Forest was obliged to grant fresh environmental clearances in respect of fresh grant of mining leases in accordance with law and the decision of this Court in Goa Foundation and not merely lift the abeyance order of 14th September, 2012.

Hence, the Court set aside the second renewal of the mining leases granted by the State of Goa is liable to be set aside and issued the following directions:

In Goa Foundation case, it was held that all the iron ore and manganese ore leases had expired on 22nd November, 2007 and hence, any mining operation carried out by the mining lease holders after that date was illegal. It was also held that all the mining lease holders had enjoyed a first deemed renewal of the mining lease and for a second renewal an express order was required to be passed in view of and in terms of Section 8(3) of the MMDR Act. [Goa Foundation v. Sesa Sterlite Ltd., 2018 SCC OnLine SC 98, decided on 07.02.2018]

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