Jharkhand High Court
Ezaharul Hossain vs State Of Jharkhand on 26 September, 2025
Author: Sujit Narayan Prasad
Bench: Sujit Narayan Prasad
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IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P.(C) No.5366 of 2025
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EZAHARUL HOSSAIN, aged about 46 years, son of Nurul Hossain,
resident of Village- Chichra, P.O. Chichra, PS. Jamboni, District- Paschim
Medinipur, West Bengal-7251507, sole proprietor of M/S EZAHARUL
HOSSAIN, a proprietorship firm having its registered office at Village
Chichra, P.O. Chichra, P.S. Jamboni, District Paschim Medinipur, West
Bengal-7251507
.... .... Petitioner
Versus
1. STATE OF JHARKHAND, through the Secretary, Department of Mines
and Geology, having its office at Vikas Bhawan, Nepal House, P.O. and
P.S. Doranda, District- Ranchi, Jharkhand.
2. DEPUTY SECRETARY, Department of Mines and Geology. having its
office at Vikas Bhawan, Nepal House, P.O. and P.S. Doranda, District-
Ranchi, Jharkhand.
3. DIRECTOR, Department of Mines and Geology, having its office at
Vikas Bhawan, Nepal House, P.O. and P.S. Doranda, District-Ranchi,
Jharkhand.
4. JHARKHAND STATE MINERAL DEVELOPMENT CORPORATION
LTD. through its Chairman, having its office at Khanij Bhawan, P.O. and
P.S. Doranda, District- Ranchi, Jharkhand.
5. MANAGING DIRECTOR, Jharkhand State Mineral Development
Corporation Ltd., having its office at Khanij Bhawan, P.O. and P.S.
Doranda, District- Ranchi, Jharkhand
6. DEPUTY COMMISSIONER, East Singhbhum, having its office at
Office of the Deputy Commissioner, P.O. and P.S. Sakchi, Town-
Jamshedpur, District- East Singhbhum, Jharkhand.
.... .... Respondents
CORAM:HON'BLE MR. JUSTICE SUJIT NARAYAN PRASAD
HON'BLE MR. JUSTICE ARUN KUMAR RAI
1
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For the Petitioner : Mr. Zaid Imam, Advocate
For the Respondents : None
------
C.A.V. on 24.09.2025 Pronounced on 26/09/2025
Per Sujit Narayan Prasad, J.
1. This writ petition is under Article 226 of the Constitution of India seeking
for the following reliefs: -
"(i) For a writ in the nature of certiorari for quashing the Letter No.
1065 dated 01.08.2025 (Annexure-14) issued by the Respondent-
Jharkhand State Mineral Development Corporation Ltd., whereby the
agreement entered into between Jharkhand State Mineral Development
Corporation Ltd. and the Petitioner in terms of the Letter of Intent
issued vide letter No. 1108 dated 05.10.2023 issued by Respondent-
Jharkhand State Mineral Development Corporation Ltd. was cancelled;
(ii) For a writ in the nature of certiorari for quashing the Letter No. 967
dated 31.07.2025 (Annexure-13) issued by the Respondent- Jharkhand
State Mineral Development Corporation Ltd., whereby the
empanelment of the Petitioner as Mining Developer cum Operator
(MDO) has been cancelled;
(iii) For a writ in the nature of declaration declaring that in terms of
Rule 20(1) of Jharkhand Sand Mining Rules, 2025, Petitioner's Mining
Developer cum Operator (MDO) agreement dated 20.01.2024
(Annexure-10) in respect of Bankata Sand Ghat, Jamshedpur, East
Singhbhum having an area of 4.40 hectares, shall be deemed to be valid
for period of five years as per the terms of the Agreement;
(iv) For a writ in the nature of prohibition prohibiting Respondent
authorities from restraining the Petitioner to act as a 'MDO' in respect
of Bankata Sand Ghat, situated in Town Jamshedpur, District-East
Singhbhum, having an area of 4.40 hectares' during subsistence and
continuation of the agreement dated 20.01.2024 (Annexure-10);
(v) For a writ in the nature of certiorari for quashing and setting aside
the Notification dated 30.09.2022 (ANNEXURE- 12) to the extent it
declares Jharkhand State Mineral Development Corporation as
'Deemed Lessee' of all Sand Ghats only up to 15.08.2025, as opposed to
being declared as Deemed Lesse of Sand Ghats, as being violative of
Rule 12(4) of Jharkhand Minor Concession (Second Amendment) Rules,
2017;
(vi) Pending final disposal of the instant writ application, Your
Lordships may be pleased to stay the
operation/implementation/execution of the impugned letter no. 967
dated 31.07.2025 and letter no. 1065 dated 01.08.2025 issued by
Respondent-Jharkhand State Mineral Development Corporation Ltd.
and the Respondents be restrained from interfering in functioning of the
Petitioner as Mining Developer cum Operator (MDO);
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(vii) FOR issuance of any other appropriate writ(s)/order(s)/
direction(s) as Your Lordships may deem fit and proper in the facts and
circumstances of the case."
2. The brief facts of the case, as per the pleading made in the writ petition,
requires to be enumerated, which read as under: -
The State of Jharkhand vide Notification dated 16.08.2017
promogulated Jharkhand State Sand Mining Policy 2017 in exercise of the
powers conferred under Section 15 of the Mines and minerals
(Development and Regulation) Act, 1957, under the said Sand Mining
Policy, 2017, sand deposits were categorized into Catgeory-1 and Category-
2, the dispute in present writ application relates to Category-2 sand ghats.
In respect of Category-2 Sand Ghat, sand deposits were to be
managed by State Government through Jharkhand State Mineral
Development Corporation Limited (for short JSMDCL) and JSMDCL was
to be allocated sand deposits for a period of five years or more as decided
by the State Government and it was the responsibility of JSMDCL to obtain
all statutory clearances for sand mining, storage and sale. Under the Policy
of 2017, State Government had to reimburse the entire expenditure incurred
by JSMDCL for operation and maintenance of Sand Ghats and had to pay
suitable Agency commission as fixed by the Government.
The State Government, in respect of Category-2 Sand Ghat itself
decided to operate the said Sand Ghat through the Agency of JSMDCL for
which JSMDCL was made responsible for obtaining all such clearances for
facilitating the work of sand mining, storage and sale for which it was to be
paid Agency Commission by the State Government.
Further, the State of Jharkhand carried out amendment under
Jharkhand Minor Mineral Concession Rules, 2004 vide notification dated
12.12.2017 and inserted Rule 12(4) providing inter alia that JSMDCL shall
be 'Deemed Lessee' in respect of such Sand Ghat which are being operated
by it or for which authorization is given by State Government.
Consequent upon Policy of 2017, JSMDCL published a Notice
inviting Expression of Interest dated 30.09.2021 for empanelment of
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Mining Developer-cum-Operator (for short 'MDO').
Pursuant to the aforesaid, Petitioner-firm applied for empanelment as
MDO, and vide notice no. 06/2021-22 dated 30.09.2021, the Petitioner was
declared successful by Respondent-JSMDCL and the Petitioner empaneled
as MDO by Respondent- JSMDCL.
The State of Jharkhand vide Notification dated 31.03.2022 provided
that process of settlement of sand ghat in favour of MDO would be carried
out through Nodal Agencies i.e., Deputy Commissioner of each district of
Jharkhand where sand ghats are located through JSMDCL.
Further, pursuant to the aforesaid Resolution, steps were taken by the
Nodal Officer i.e. Deputy Commissioner of each district for settlement of
sand ghat in favour of empaneled MDO and accordingly, notice inviting
tender dated 08.06.2023 was also issued pertaining to sand ghat, namely,
Bankata, Bahragora, District- East Singhbhum, was issued by the
Respondent No. 6 having an area of 4.4 hectares.
The petitioner participated in the aforesaid tender and on being
declared successful, JSMDCL issued Letter of Intent vide Letter No. 1108
dated 05.10.2023 and the petitioner was selected as MDO for 03 years and
was directed to deposit 3% of the contract value as Performance Security
and additional Rs.1,54,381/- as additional security.
The Environmental Clearance to Operate was granted to the
Petitioner vide Letter No. EC/SEIAA/2024-25/3113/2024/68 dated
24.05.2024 by the Sand In-Charge, JSMDCL. The petitioner was also
granted Consent to Operate vide Letter no. JPSCB/HO/RNC/CTO-
20393920/2024/1836 dated 04.12.2024 and also Consent to Establish vide
Letter No. JPSCB/HO/RNC/CTE-19457085/2024/455 dated 09.12.2024 by
the Jharkhand State Pollution Control Board.
An agreement dated 20.01.2024 was entered by JSMDCL and the
Petitioner wherein the Petitioner was appointed as MDO in respect of
Bankata Sand Ghat for a period of five years as per the terms of the
Agreement stated at Clause 4 of the said agreement entered into between
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the parties.
Pursuant to Sand Policy of 2017 framed by State of Jharkhand,
JSMDCL was appointed as an agent of State of Jharkhand for carrying out
mining activities at the sand ghat and JSMDCL acting as an agent of the
State of Jharkhand had appointed the Petitioner as MDO for in turn,
carrying out mining activities for a period of five years for which the
agreement was entered.
The State of Jharkhand has notified 'Jharkhand Sand Mining Rules,
2025' (for short Rules of 2025) vide Notification dated 09.05.2025 which
provides that sand deposit of Category-2 Sand Ghat shall be managed
through auction by competitive bidding of the State Government.
The process of empanelment for operation of sand ghat was initiated
in the month of July, 2023 and Letter of Intent was issued to the Petitioner
on October, 2023 which clearly stipulated that the Petitioner shall operate as
MDO for a period of 3+2 years after obtaining all statutory clearances
including entering into the Agreement.
Further, an agreement has been entered into with the Petitioner on
20.01.2024 which is for a period of five years from the date of
commencement of operations.
The petitioner has been supplied with a Notification issued by
Respondent Mines and Geology Department dated 30.09.2022 wherein
terms of clause 4(b) of Mining Policy of 2017 tenure of deemed lessee of
JSMDCL has been extended to 15.08.2025.
Further, notification dated 30.09.2022 to the extent it extends the
tenure of deemed lessee of JSMDCL in generality by giving reference to
Clause 4(b) of Mining Policy of 2017 up to 15.08.2025 is per se illegal,
arbitrary and contrary to the provisions of Jharkhand Minor Mineral
Concession (Second Amendment) Rules, 2017, particularly Rule 12(4)
thereof.
The State of Jharkhand pursuant to Mining Policy of 2017 amended
Rule 12 of JMMC Rules 2004, and vide Rule 12(4), it was provided inter
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alia, that sand ghats which are operated by JSMDCL, JSMDCL would be
deemed to be lessee in respect of the same.
It is the case of the petitioner that respondent JSMDCL as well as the
State Government all along have treated the tenure of deemed lessee to be
of five years from the date the sand ghat becomes operational and it is on
that background only that notice inviting tender was published, inviting
applications for carrying out the work of MDO for a period of five years, in
the year, 2024.
The respondent JSMDCL vide their letter no. 1065 dated 01.08.2025
also cancelled the empanelment of the Petitioner as MDO without any prior
notice and without allowing the opportunity of being heard to the Petitioner
before such cancellation which has been challenged herein by preferring the
instant writ petition.
Submissions of the learned counsel for the petitioner
3. Learned counsel for the writ petitioner has taken the following grounds in
assailing the impugned order: -
(i) It has been contended that the respondent authorities while passing the
order impugned have not appreciated the fact in the right perspective.
(ii) It has been contended that the Policy of 2025 vide repeal and saving
clause, specific clause has been inserted saving things which have
already been done under the Policy of 2017 but contrary to such
insertion of Rule, the respondent authorities vide Letter No.967 dated
31.07.2025 cancelled the agreement of the petitioner as well as
empanelment of the petitioner.
(iii) It has further been contended that the respondent authorities have no
jurisdiction to issue the letter as contained in memo no.1065 dated
01.08.2025 and cancel the empanelment of the petitioner as MDO for
operation of the sand ghat on the implementation of Sand Mining
Rules, 2025 without any prior notice and without allowing the
opportunity of being heard.
(iv) It has also been contended that the action of the respondents in issuing
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impugned notification dated 30.09.2022 to the extent it declares
JSMDCL as deemed lessee in respect of all sand ghats only up to
15.08.2025 is illegal and arbitrary and violative of Rule 12(4) of the
Jharkhand Minor Mineral Concession (Second Amendment) Rules,
2017.
(v) Learned counsel, based upon the aforesaid grounds, has submitted that
the order impugned is fit to be interfered with and hence, is liable to be
quashed and set aside.
(vi) Lastly, it has been submitted that issue involved in the present case is
lying pending for consideration in W.P.(C) No.4503 of 2025 and
analogous cases which was reserved on 04th September, 2025, hence,
the present petition may also be disposed of in the light of the
aforesaid case.
4. None appears for the respondents.
Analysis
5. We have heard the learned counsel for the petitioner and gone through the
pleadings made in the writ petition as also the reasons assigned by the
authority concerned negating the claim of the writ petitioner.
6. We have considered the arguments advanced on behalf of the parties and
perused the judgment passed by this Court in W.P.(C) No.4503 of 2025 and
analogous cases on 25.09.2025.
7. We, after going through the prayer and pleadings made in the writ petition,
as also, the judgment dated 25.09.2025 passed in W.P.(C) No.4503 of 2025
and analogous cases, have found that the issue, which is the subject matter
of the present writ petition, has been decided by this Court in the aforesaid
judgment. For ready reference, the relevant paragraphs of the aforesaid
judgment are being referred as under:-
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"110. There is no doubt that once the right has been accrued in favour of
any individual the same cannot be snatched away or taken away by virtue
of enactment of the subsequent rule(s)/policy decision/resolution. The
aforesaid position of law is evident from provision of Section 6 of the
General Clauses Act particularly the sub-section (c) thereof.
112. It is, thus, evident from perusal of Section 6 thereof that in a case of
repealment of the earlier enactment no right will be said to be accrued by
virtue of the repelled Act but if the right has been accrued then the same
will be said to be done in pursuance to the subsequent rule thereby the
saving right will accrue in favour of one or the other individual.
115. Mr. Sumeet Gadodia, learned counsel for the petitioners has taken
the ground of accrued right on the basis of the fact that after having been
empanelled by the JSMDC in pursuance to the Policy of 2017, and based
upon that the environmental clearance and other required documents was
also issued by the competent authorities, hence, the case of the writ
petitioners will come under the fold of Rule 20(1) of Rules of 2025,
wherein it has been provided that on the commencement of these rules, the
Jharkhand Sand Mining Policy, 2017 and its subsequent amendments shall
cease to be in force except as regards things, done or omitted to be done
before such commencements.
116. Learned counsel for the petitioners has submitted that since one or
the writ petitioners have been empanelled and the environmental
clearance has also been given by the competent authority hence it cannot
be disputed that the things has not been done and thereby the right of the
writ petitioners is saved in view of provision of Rule 20(1) Rules of 2025.
117. Contrary to the same, learned Advocate General has submitted by
referring to Rule 20(3) of Rules of 2025 that after the notification of these
rules, any earlier executed lease deed/deemed lease shall be valid till the
validity of lease deed, or as the period defined in the order for deemed
lease; subsequently the process of mineral concession shall be adhered to
these rules.
118. The learned Advocate General in addition to the aforesaid has also
submitted that the things which is being said to be done is not in favour of
the writ petitioners rather JSMDC as an agent and the moment the validity
of the lease itself expires by virtue of enactment of subsequent Rules of
2025, in exercise of power conferred under Section 15 of the MMDR Act,
1957 coupled with the fact that the reference of the date of validity as
15.08.2025 has also been made in the said documents i.e., in
environmental clearance dated 22.01.2025 (Annexure-9), agreement
dated 08.05.2025(Anneuure-11) in clause no. 4(v) and in the notification
dated 30th September, 2022(Annexure-14). Hence, it is not a case where
there is any accrued right which is being claimed by the petitioner.
119. We, on consideration of the aforesaid submission, have examined the
different documents along with the policy decisions and enactments.
120. The first policy decision is dated 16th August, 2017 issued in exercise
of power conferred under Section 15 of the MMDR Act, 1957, in which
specific condition has been stipulated as under Rule 4 (b), which says that
all the sand deposits in Category-2 shall be allocated to JSMDC for a
minimum period of 5 years or more as decided by the Government.
121. Thereafter, by virtue of amendment having been incorporated in
the JMMC Rules, 2004 in exercise of power conferred under Section 15 of
the MMDR Act, 1957, the Jharkhand Minor Mineral Concession (Second
Amendment) Rules, 2017 has come which was notified on 12th December,
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2017 inserting a provision as 12(4) whereby the JSMDC has been given
the status of 'deemed lessee'.
122. Hence, it is evident that sand deposits in Category-2 shall be
allocated to JSMDC for a minimum period of 5 years, subject to extension
to be decided by the government. Therefore, as per Rule 12(4) of
Jharkhand Minor Mineral Concession (Second Amendment) Rules, 2017
which was notified on 12th December, 2017, the status of JSMDC of
deemed lessee will be valid up-to the period of 5 years. Thereafter, as per
notification dated 30th September,2022, tenure of deemed lessee JSMDC
was extend for three years from 16.08.2022 meaning thereby the same will
be operative up to 15.08.2025.
123. Further, the Jharkhand Sand Mining Policy, 2017, has been ceased
by virtue of Rule 20(1) of Jharkhand Sand Mining Rules,2025, by
notification dated 9th May, 2025 wherein also specific reference has been
made at Rule 20(3) that after the notification dated 9th May, 2025, any
earlier executed lease deed/deemed lease shall be valid till the validity of
lease deed or as period defined for deemed lease. It is reiterated herein
that one or the other writ petitioners has not been granted the status of
deemed lessee rather they are agent of the deemed lessee i.e., JSMDC.
124. The question of accrued right only on the ground of empanelment
MDO of the one or the writ petitioners by virtue of the Letter of
Empanelment dated 30.09.2022 and based upon that the agreement
between the parties dated 8th May,2025 and other documents have been
issued has been taken as a ground to for 'Legitimate Expectation' or the
accrued right but it cannot be accepted since in the said Letter of
Empanelment, the specific term of empanelment has been referred that the
empanelment of MDO shall be valid for a period of five years from the
date of issuance of Letter of Empanelment or till the validity of the status
of JSMDL as a deemed lessee for the Category-II sand ghats subject to
annual renewal by the JSMDC. After the expiry of five years renewal of
empanelment of the MDO, if applicable shall be at the sole discretion of
JSMDC.
125. It is admitted case herein that validity of empanelment of one or the
other writ petitioners as MDOs, remain for a period of 5 years having not
been extended by the JSMDC.
126. It is also evident from the Letter of Empanelment dated 30.09.2022
that the same has been made valid for a period of five years from the date
of issuance of the letter of empanelment or till the validity of status of
JSMDC as deemed lessee for Category II Sand Ghats subject to annual
renewal. It is evident from the letter of empanelment that the petitioners
have already been apprised that empanelment is valid for a period of 5
years from the date of issuance of letter of empanelment or till the validity
of the status of JSMDC as deemed lessee.
127. Here, it is not in dispute that the validity of the status of JSMDC as
deemed lessee has been ceased to be operative after 15.08.2025 by virtue
of notification dated 30.09.2022. Even Environmental Clearance dated
22.01.2025 issued by SEIAA at Column 10 'Mine Life' it is stated that
lease period to be 15.08.2025 as per provision of Jharkhand State Sand
Mining Policy, 2017.
128. This Court has found that there is specific condition referred in the
Letter of Empanelment that the validity will depend upon the status of the
deemed lessee and admittedly the JSMDC itself has expired after
15.08.2025. Hence, it is not the question of accrued right or legitimate
expectation, as has been taken as a ground for seeking relief, and is being
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claimed on behalf of petitioners on the basis of Rule 20(1) of Jharkhand
Sand Mining Rules, 2025, which was notified by notification dated 9th
May, 2025 in which accrued right is being claimed, but, the same is ceased
to operate after 15.08.2025 by virtue of issuance of notification dated
30.09.2022.
129. Admittedly, the writ petitioners have accepted the terms and
conditions of the Letter of empanelment dated 30.09.2022 and once it has
been accepted that their status will be only of the MDOs depending upon
the validity of status of the deemed lessee i.e., JSMDC then it is not
available to raise the issue of 'accrued right' or 'legitimate expectation'.
130. It is also evident that validity of five years has also been given in
documents such as in clause 4 of Policy of 2017, wherein it has been noted
that sand deposit in category-2 shall be allocated to JSMDC for a
minimum period of 5 years and in invitation of Financial Proposal from
Empanelled MDOs at Clause 5.3 under 'contract period', tenure of
agreement is written as 3 years from the commencement date, which was
further extendable to 2 more years.
131. Further Rule 20(3) of Rules of 2025 also provides that after
notification of these rules, any earlier executed lease deed/deemed lease
shall be valid till the validity of lease deed, or as the period defined in the
order for deemed lease; subsequently the process of mineral concession
shall be adhered to these rules.
132. This Court is of the view that Rule 20 since contains sub-provisions
(3) hence all the provisions are required to be read together in entirety and
not in piecemeal. Although Rule 20(1) of Rules of 2025 provides by saving
the right to the effect that on the commencement of these rules, the
Jharkhand Sand Mining Policy 2017 and its subsequent amendments shall
cease to be in force except as regards things, done or omitted to be done
before such commencements, but when Rule 20(1) will be read together
with Rule 20(3), wherein it has specifically been provided that after the
notification of these rules, any earlier executed lease deed/deemed lease
shall be valid till the validity of lease deed, or as the period defined in the
order for deemed lease.
133. Herein, by virtue of notification dated 30.09.2022, the status of the
deemed lessee i.e., JSMDC became in-operational after 15.08.2025,
hence, this Court is of the view that the petitioner will have no accrued
right.
134. So far as the issue of legitimate expectation, on the basis of
agreement, so entered in between the petitioner and the JSMDC and
empanelment of the petitioner as MDO, is concerned, the parties have
entered into the agreement with clear stipulation as mentioned in clause 4
that the empanelment of MDO would be for 5 years, but the same is
subject to proviso to clause 4, which says that above clause shall be
subject to the applicability of the date as per Sand Mining Policy and
currently it is 15.08.2025. Therefore, on this ground the petitioner has
failed to make out a case on the ground of legitimate expectation.
136. In the present case, it is the policy decision of the State Government
to change the old policy, wherein, earlier sand ghats were allocated
through JSMDC as deemed lessee under Jharkhand State Sand Mining
Policy, 2017. Now, Jharkhand State Sand Mining Policy, 2017 has expired
by coming into existence of new Jharkhand Sand Mining Rules, 2025 by
notification dated 9th May,2025, and in this new Rule of 2025 provision
has been made that allocation of sand ghats will be done through
competitive bidding by e-auction. Hence, this court would not interfere as
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per ratio laid down in Union of India v. Hindustan Development Corpn.,
(Supra) in matters relating to change of old policy viz. Jharkhand State
Sand Mining Policy, 2017 and replacing it by new Jharkhand Sand Mining
Rules, 2025. Further, the ground of legitimate exception is also not
available to the petitioners as petitioners have no crystalized right as the
status of JSMDC as a deemed lessee was only up to 15.08.2025 as per
notification dated 30th September,2022 and also on account of the fact that
the Jharkhand Sand Mining Policy,2017 has been ceased by virtue of Rule
20(1) of Jharkhand Sand Mining Rules, 2025, by notification dated 9th
May, 2025.
137. This Court, in view of discussions made hereinabove and the law
laid down by Hon'ble Apex Court in the case of Union of India v.
Hindustan Development Corpn., (Supra), is of the view that the petitioner
has neither got any 'accrued right' nor 'legitimate expectation'.
138. So far as the argument that the period of five years will be counted
from the date of making it operational and not from the date of allocation,
this Court is in agreement with the submission advanced by learned
Advocate General that the validity of the bid document under which the
right to operate the sand ghats are being granted in favour of one other
writ petitioners itself has lost its force by virtue of coming into existence of
Jharkhand Sand Mining Rules,2025, which was notified on 9th May, 2025.
139. Further, relying on the ratio in the case of State of Punjab
(Supra) and Gammon India Ltd. (Supra), we find that by enacting the
new Act 'Jharkhand Sand Mining Rules,2025', specific provision has been
made to obliterate the 2017 Police i.e., "Jharkhand State Sand Mining
Policy,2017". The Jharkhand Sand Mining Policy, 2017, has been ceased
by virtue of Rule 20(1) of Jharkhand Sand Mining Rules, 2025, by
notification dated 9th May, 2025 wherein specific reference has been made
at Rule 20(3) that after the notification dated 9th May, 2025, any earlier
executed lease deed/deemed lease shall be valid till the validity of lease
deed or as period defined for deemed lease.
140. Accordingly, the issues no.(I) and (II) has been answered against the
writ petitioners.
141. Now, we are proceeding to decide the issue no.(III) i.e. whether
policy decision dated 30th September, 2022, to the extent it declares
Jharkhand State Mineral Development Corporation as Deemed Lessee of
all Sand Ghats only up to 15th August, 2025, is arbitrary and contrary to
the vice of Article 14 of the Constitution of India.
142. So far as the prayer no. 1 (III) is concerned which is for setting aside
the notification dated 30th September, 2022 to the extent it declares
Jharkhand State Mineral Development Corporation as Deemed Lessee of
all Sand Ghats only up to 15th August, 2025, as opposed to being declared
as Deemed Lessee of Sand Ghats for a period of five years from the date of
operation of Sand Ghats, as being violative of Rule 12(4) of Jharkhand
Minor Mineral Concession (Second Amendment) Rules, 2017, is
concerned, the validity of the aforesaid policy decision dated 30th
September, 2022 has been questioned on the ground that the same is in the
teeth of provision of Rule 12 (4) of the Jharkhand Minor Mineral
Concession (Second Amendment) Rules, 2017, which was notified on 12th
December, 2017.
143. The provision of Rule 12(4) has given the status to JSMDC to
deemed lessee, however, the same has been taken away by virtue of new
rules Jharkhand Sand Mining Rules, 2025, by notification dated 9th May,
2025.
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144. We are conscious that the validity of the Rule is to be declared ultra
vires if it is in the teeth of the parent Act/Rule or hits the principles as
contained under Article 14 of the Constitution of India.
146. We, after going into the pleading made in the writ petition, have
found that no specific ground has been taken as to why the policy decision
dated 30th September, 2022, is to be declared invalid save and except the
ground that the right as is being claimed on behalf of petitioner has been
taken by virtue of notification dated 9th May, 2025 by which Jharkhand
Sand Mining Rules, 2025 came into existence.
147. This Court, in order to come to the conclusion as to whether the
policy decision as per notification dated 30th September, 2022 is in the
teeth of amendment incorporated in the JMMC Rules, 2004 as notified by
virtue of notification dated 12th December, 2017, has gone through both
the notifications and found that the notification dated 12th December, 2017
has been issued in exercise of power conferred under Section 15 of the
MMDR Act, 1957.
148. The notification dated 9th May, 2025 has also been issued in exercise
of power conferred under Section 15 of the MMDR Act, 1957. Section 15
of the MMDR Act, 1957 confers power upon the State to make out rules for
the purpose of regulating the grant of quarry leases, mining leases and
other mineral concessions for minor minerals. ..... ...... ......
149. The argument that it is in the teeth of statutory provision had been
accepted if the notification dated 9th May, 2025 would have been issued
not under the power conferred under Section 15 of the MMDR Act, 1957
but herein the notification dated 9th May, 2025 has been issued in exercise
of power conferred under Section 15 of the MMDR Act, 1957. Since the
State Government has been conferred with the power under Section 15 of
the MMDR Act, 1957 to make out the rules and the State on its own
wisdom if has come out with notification dated 9th May, 2025 for the
purpose of allocation of sand ghats through e-auction in order to follow
the principle of fairness and transparencies as also with a mission for
more revenue generation. Hence, on the basis of such reason if any
departure has been made by taking away the status of the JMSDC of
deemed lessee by Rule 20(3) of Rules of 2025, which status was conferred
inserting Rule 12(4) in JMMC Rules, 2004 by notification dated
12.12.2017 in exercise of power conferred under Section 15 of the MMDR
Act, 1957, then according to our considered view, it cannot be said that
the notification dated 9th May, 2025 is in the teeth of provision of Rule
12(4) JMMC Rules, 2004 having been inserted by way of amendment as
notified in notification dated 12th December, 2017. Rather, when we have
gone through the notification dated 9th May, 2025, we have found
particularly from Rule 6.IV.a that the sand deposit of category 2 shall be
managed through competitive bidding (e-auction). The e-auction shall be
conducted by the District Committee as constituted by the Department of
Mines and Geology, Government of Jharkhand under the Chairmanship of
Deputy Commissioner. Further, at clause 6.IV.c, it has been stated that the
reserve price of the auction shall be determined by the District Committee
as per the guidelines issued by the Directorate of Mines. After two
unsuccessful attempts of auction the Reserve Price shall be re-determined
after due consideration of all socio, technical and economical aspects. .....
..... .....
150. We, after going through the Jharkhand State Sand Mining Policy,
2017, have found that all the sand deposits in Category-2 shall be
allocated to JSMDC for a minimum period of 5 years or more as decided
by the Government. The Sand is decided to be sold by the JSMDC on
[2025:JHHC:30571-DB]
commercial basis in consultation with the Government, meaning thereby,
JSMDC, since has been given as the status of deemed lessee by
notification dated 12.12.2017 and by Notice Inviting Expression of Interest
dated 30.09.2021 sand is directly to be sold out through the agent i.e., the
writ petitioners herein who have been empanelled as MDOs.
151. Since we are living in the competitive era and as such if in such
circumstances as also for the purpose of earning revenue by the process of
e-auction in order to get rid of any intermediary, even in the present case
government undertaking Respondent No.4 Jharkhand State Mineral
Development Corporation Ltd., who is to sold out the sand through the
third party i.e., agent [MDOs] and in such circumstances the government
has taken a decision to allocate the sand ghats through competitive
bidding by the process of e-auction then the same according to our
considered view cannot be said to suffer from any vice or malice or
arbitrariness rather the bid process once will be followed then the same
will be in the public domain for the purpose of following the fairness and
transparency as also the government may have the own source of earning
through the bidding process. The bidding process also does not create any
right upon any individual and thereby the monopolistic right has also been
taken care of.
152. This Court, applying the principle to declare the statute to be invalid
as has been decided by the Hon'ble Apex Court in the case of Naresh
Chandra Agrawal Versus Institute of Chartered Accountants of India
and Others(supra), is of the view that the policy decision dated 30th
September, 2022, to the extent it declares Jharkhand State Mineral
Development Corporation as Deemed Lessee of all Sand Ghats only up to
15th August, 2025, cannot be held to be arbitrary and contrary to the vice
of Article 14 of the Constitution of India.
153. The ground of saving the right has also been taken into
consideration. The saving of the right depends upon the accrual of the
right, which we have already discussed above.
154. This Court considering the discussion as above is of the view that
the relief as sought for in prayer 1(iii) is not fit to be extended in favour of
the writ petitioner.
155. Accordingly, issue no. (III) is answered against the writ petitioners.
156. Further, from the notification dated 30.09.2022, it is evident that the
JSMDC was deemed lessee only up-to 15th August, 2025 and admittedly
the State Government has not extended the same and further it does not
come within the ambit of saving clause, as discussed above, as such the
agreement executed between the JSMDC and the petitioner has been
cancelled vide order dated 01.08.2025, which requires no interference.
157. So far as the issue raised on behalf of petitioners that earnest money
has been deposited in terms of agreement dated 8th May, 2025, is
concerned, submission has been made at Bar by learned Advocate General
that since the agreement in between the JSMDC and the petitioner has
been cancelled vide memo no. 1067 dated 01.08.2025 by JSMDC, as such
petitioner has been informed to submit the details of bank account so that
security would be refunded to the petitioner(s) in terms of the agreement.
Further, it has been submitted that Clause 13 of the Agreement is there
which provides for dispute resolution and arbitration clause, which may
be resorted to by the petitioner, if they are at all aggrieved.
158. This Court in view specific submission advanced by learned
Advocate General to the effect that petitioner has been informed to submit
the details of bank account so that security be refunded to the petitioner(s)
[2025:JHHC:30571-DB]
in terms of the agreement, is of the view that the petitioner, if requires,
may approach to the authority for refund of the security, if any. Further if
there is any dispute regarding it, it is left open to the writ petitioners to
raise the arbitration clause, if the petitioner so wishes.
159. The issues framed by this Court are answered accordingly.
160. With the aforesaid observations and directions, all the writ petitions
stand dismissed."
8. This Court therefore is of the view that since the factual aspect is identical
and the issue has already been dealt with by this Court in W.P.(C) No.4503
of 2025 and analogous cases on 25.09.2025, hence, there is no reason to
take distinct view.
9. Since this Court has taken the view in W.P.(C) No.4503 of 2025 and
analogous cases on 25.09.2025 by declining to pass positive direction in
favour of the writ petitioners, hence, the instant writ petition also deserves
to be dismissed.
10. Accordingly, the instant writ petition stands dismissed, in terms of the
judgment dated 25.09.2025 passed in W.P.(C) No.4503 of 2025 and
analogous cases.
11. In consequence thereof, pending interlocutory application(s), if any, stands
disposed of.
(Sujit Narayan Prasad, J.)
I Agree
(Arun Kumar Rai, J.) (Arun Kumar Rai, J.)
26th September, 2025
Saurabh/-
A.F.R.
Uploaded on 26.09.2025
