SC Tells Firms to Pay 100% Penalty for Illegal Mining in Odisha

The Suprme Court called for “rule of law”to prevent illegal mining activities in other parts of India.

The Supreme Court on Wednesday said that mining companies in Odisha operating without environmental clearance will have to pay a 100 percent penalty to the state on the price of illegally extracted iron and manganese ores with effect from 2000-01.

A bench of justices MB Lokur and Deepak Gupta also directed setting up of an expert panel under the guidance of a retired apex court judge to identify the lapses over the years which enabled rampant illegal mining in the state and recommend measures to prevent its recurrence.

It expressed concern over the environmental degradation due to such activities and asked the Centre to take a fresh look at the National Mineral Policy, 2008 saying it is “almost a decade old”, particularly with regard to conservation and mineral development.

The court’s verdict came on a PIL, filed by NGO Common Cause, had sought immediate intervention in the matter, saying that the Justice MB Shah Commission has pointed out large-scale illegal mining in the state.

Observing that the “rule of law” needed to be established to prevent illegal mining activities in other parts of India, the court said the exercise relating to the mineral policy should be completed by 31 December.

We make it clear that minerals extracted either without environmental clearance or without forest clearance or without both will attract the provisions of section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957 and that 100 per cent of the price of the illegally or unlawfully mined mineral must be compensated by the mining lease holder

Supreme Court

The amount be deposited by the companies on or before 31 December, it said.

The bench, however, did not direct a CBI inquiry to ascertain persons involved in the illegal mining activities as sought by advocate Prashant Bhushan, who was appearing for NGO Common Cause, saying the immediate concern was to stop these unlawful activities.

Undoubtedly, there have been very serious lapses that have enabled large-scale mining activities to be carried out without forest or environment clearance and eventually the persons responsible for this will need to be booked. But...the violation of the laws and policy need to be prevented in other parts of the country.

Supreme Court

It also said any mining activity carried out after 7 January 1998 without a forest clearance amounted to illegal or unlawful mining in terms of the Act attracting 100 per cent recovery of the price of the extracted mineral.

The bench, however, clarified that in the event of any overlap with regard to illegal or unlawful mining without clearance would attract only 100 per cent compensation and not 200 per cent.

The court observed that the petitions filed before it suggested "a mining scandal of enormous proportions and one involving megabucks".

(This story has been edited for length.)

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