Karnataka High Court
M/S Minera Steel And Power Pvt Ltd vs State Of Karnataka on 18 February, 2025
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF FEBRUARY, 2025
PRESENT
THE HON'BLE MR. N.V. ANJARIA, CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE K.V. ARAVIND
WRIT PETITION NO. 26018 OF 2024 (GM-MM-S)
BETWEEN:
1. M/S MINERA STEEL AND POWER PVT. LTD.,
UNDER REGISTERED THE COMPANIES ACT, 1958
REGISTERED OFFICE AT PRESTIGE MINERA
NO. 6, 3RD FLOOR, GUARD CROSS ROAD
SHIVAJI NAGAR
BANGALORE - 560 001
REPRESENTED BY ITS DIRECTOR
T.G. ASWATHA NARAYANA
AGED ABOUT 59 YEARS.
... PETITIONER
(BY SRI D.L.N. RAO, SENIOR ADVOCATE FOR
SRI ANIRUDH ANAND, ADVOCATE)
AND:
1. STATE OF KARNATAKA
BY ITS PRINCIPAL SECRETARY
AND NODAL OFFICER
DEPARTMENT OF COMMERCE AND
INDUSTRIES (MSME AND MINES)
VIKASA SOUDHA
DR. AMBEDKAR VEEDHI
BANGALORE - 560 001
2. DEPARTMENT OF MINES AND GEOLOGY
REPRESENTED BY ITS DIRECTOR
KHANIJA BHAVAN
RACE COURSE ROAD
BANGALORE - 560 001
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3. ADDITIONAL CHIEF SECRETARY
TO GOVERNMENT FORESTS
ENVIRONMENT AND ECOLOGY DEPARTMENT
M.S. BUILDING
DR. AMBEDKAR VEEDHI
BANGALORE - 560 001
4. PRINCIPLE CHIEF CONSERVATOR OF FOREST
HEAD OF FOREST FORCE
ARANYA BHAVAN
18TH CROSS, MALLESHWARAM
BANGALORE - 560 003
5. DEPUTY CONSERVATOR OF FORESTS
VIJAYANAGARA DIVISION
HOSAPETE - 583 201
6. DEPUTY CONSERVATOR OF FORESTS
BELLARY DIVISION
BELLARY - 583 101
... RESPONDENTS
(BY SMT. NILOUFER AKBAR, AGA FOR R-1 TO R-6)
---
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE
A WRIT IN THE NATURE OF CERTIORARI AND SET ASIDE THE
IMPUGNED STOPPAGE NOTICE BEARING NO.A3/Minera/CR-
21/2023-24 DATED 08.04.2024 ISSUED BY THE FIFTH
RESPONDENT VIDE ANNEXURE - N & ETC.
THIS WRIT PETITION HAVING BEEN HEARD AND
RESERVED FOR JUDGMENT, COMING ON FOR
PRONOUNCEMENT THIS DAY, JUDGMENT WAS PRONOUNCED
AS UNDER:
CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE
N.V. ANJARIA
and
HON'BLE MR. JUSTICE K.V. ARAVIND
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CAV JUDGMENT
(PER: HON'BLE THE CHIEF JUSTICE
MR. JUSTICE N. V. ANJARIA)
The Deputy Conservator of Forests, Vijayanagar
Division, Hospet, by communication dated 8th April 2024
conveyed to the petitioner that the petitioner was permitted to
carry out mining in the forest land in question for maximum
period of two years from the date of commencement of the new
lease as per the guidelines dated 31st March 2020, or till Stage
II Approval under the provisions of Forest (Conservation) Act,
1980 is obtained or till the date the State Government or
Government of India so decide, whichever is earlier, that the
Lease Deed is executed on 18th April 2022 in favour of the
petitioner, and since two years' period has expired, the mining
lease operations were required to be stopped.
1.1 The stoppage notice was indicative that the petitioner
was required to obtain Forest Clearance in absence of which, it
was not entitled to continue with mining activity.
2. It is the aforesaid decision which is sought to be
challenged by the petitioner M/s. Minera Steel and Power Pvt.
Ltd., by filing the present petitioner under Article 226 of the
Constitution. While the petitioner has prayed to set aside the
stoppage notice dated 8th April 2024, a further prayer is
advanced to direct the respondent authorities to expedite the
process of transfer of the Forest Clearance and other
applicable approvals in favour of the petitioner, which were
possessed by the erstwhile lessee-mine holder-M/s. Auro
Minerals.
2.1 From the aforementioned stoppage communication
dated 8th April 2024, it could be seen that it dealt with the
transfer of forest clearance from previous lessee to the present
lessee-the petitioner. It had have the references namely
(i) Letter-guidelines dated 31st March 2020 of the Assistant
Inspector General of Forest, New Delhi; (ii) The mining lease
executed on 18th April 2022, registered on 28th April 2022, by
Director, Mines and Geology Department, Bengaluru; (iii) The
Forest Lease Agreement signed on 18th August 2022; and (iv)
Working permission letter dated 24th August 2022 from the
office of the Deputy Conservator of Forest, Ballari Division,
Ballari.
3. The case of the petitioner may be noticed. The mining
block identified as Mining Lease (ML) No.2584 to the extent of
32.05 hectares of land in Kalahalli, NEB Range Forest, Hospet
Taluka, Ballari District, Karnataka was with one M/s. Auro
Minerals Iron Ore Mine on lease basis. The block was
subjected to e-auction on 21st January 2022 by the respondent-
mining authorities for grant of Iron Ore. The petitioner was
declared as preferred bidder in accordance with Rule 9(9)(iii) of
the Mineral (Auction) Rules, 2015. Letter of Intent was issued
in favour of the petitioner on 8th February 2022.
3.1 The guidelines were issued by the Ministry of
Environment, Forest and Climate Change (Forest Conservation
Division) dated 31st March 2020. It inter alia provided that the
validity of Forest Clearance under the Forest Conservation Act,
1980 shall extend in favour of new lessee for a period of two
years in respect of auction blocks whose lease expired under
Section 8A(5) and 8A(6) of the Mines and Minerals
(Development and Regulation) Act, 1957 (hereinafter referred
to as 'MMDR Act'), subject to realization of lumpsum amount at
the rate of Rs.7.50 lakhs per hectare for total forest area within
the mining lease. The said guidelines also provided that if the
approval letter under the Forest Conservation Act is not
obtained within two years by the new lessee from the
commencement of the new lease, the mining operations will be
stopped unless such approval is obtained.
3.2 The petitioner stated that before the petitioner became
successful bidder in the auction to acquire legal rights,
Parliament enacted the Mineral Law (Amendment) Act, 2020
which came into effect from 10th January 2020. Before looking
at the mandate Section 8B, the relevant part of sub-section (5)
and sub-section (6) of Section 8A may be extracted. Secdtion
8A deals with period of grant of a mining lease or minerals
other than coal, ignite and atomic minerals,
"8A. Period of grant of a mining lease for
minerals other than coal, lignite and atomic
minerals
(1) ......
(2) ......
(3) ......
(4) ......
Provided....
(5) Notwithstanding anything contained
in sub-sections (2), (3) and sub-section (4), the
period of lease granted before the date of
commencement of the Mines and Minerals
(Development and Regulation) Amendment Act,
2015, where mineral is used for captive purpose,
shall be extended and be deemed to have been
extended upto a period ending on 31st March,
2030 with effect from the date of expiry of the
period of renewal last made or till the completion
of renewal period, if any, or a period of fifty years
from the date of grant of such lease, whichever is
later, subject to the condition that all the terms
and conditions of the lease have been complied
with.
(6) Notwithstanding anything contained in
sub-sections (2), (3) and sub-section (4), the
period of lease granted before the date of
commencement of the Mines and Minerals
(Development and Regulation) Amendment Act,
2015, where mineral is used for other than
captive purpose, shall be extended and be
deemed to have been extended upto a period
ending on 31st March, 2020 with effect from the
date of expiry of the period of renewal last made
or till the completion of renewal period, if any, or a
period of fifty years from the date of grant of such
lease, whichever is later, subject to the condition
that all the terms and conditions of the lease have
been complied with.
(7).....
(7A).....
(8).....
(9)....."
3.3 Section 8B came to be inserted after Section 8A in the
Act. Section 8B of the Act as amended in 2020 is as under,
"8B. (1) The provisions of this section shall apply
to minerals, other than the minerals specified in
Part A and Part B of the First Schedule.
(2) Notwithstanding anything contained in
this Act or any other law for the time being in
force, the successful bidder of mining leases
expiring under the provisions of sub-sections (5)
and (6) of section 8A and selected through
auction as per the procedure provided under this
Act and the rules made thereunder, shall be
deemed to have acquired all valid rights,
approvals, clearances, licences and the like
vested with the previous lessee for a period of
two years:
Provided that subject to such conditions as
may be prescribed, such new lessee shall apply
and obtain all necessary rights, approvals,
clearances, licences and the like within a period
of two years from the date of grant of new lease.
(3) Notwithstanding anything contained in
any other law for the time being in force, it shall
be lawful for the new lessee to continue mining
operations on the land, in which mining
operations were being carried out by the previous
lessee, for a period of two years from the date of
commencement of the new lease.".
3.4 The Parliament brought out another Mines and Minerals
(Development and Regulation) Amendment Act, 2021 with
effect from 28th March 2021 whereby Section 8B of the MMDR
Act was substituted, to be as under,
"8B. Provisions for period and transfer of statutory
clearances
(1) Notwithstanding anything contained in
this Act or any other law for the time being in
force, all valid rights, approvals, clearances,
licences and the like granted to a lessee in
respect of a mine (other than those granted under
the provisions of the Atomic Energy Act, 1962 (33
of 1962) and the rules made thereunder) shall
continue to be valid even after expiry or
termination of lease and such rights, approvals,
clearances, licences and the like shall be
transferred to, and vested; subject to the
conditions provided under such laws; in the
successful bidder of the mining lease selected
through auction under this Act:
Provided that where on the expiry of such
lease period, mining lease has not been executed
pursuant to an auction under provisions of sub-
section (4) of section 8A, or lease executed
pursuant to such auction has been terminated
within a period of one year from such auction, the
state government may, with the previous approval
of the Central Government, grant lease to a
Government company or corporation for a period
not exceeding ten years or till selection of new
lessee through auction, whichever is earlier and
such Government company or corporation shall
be deemed to have acquired all valid rights,
approvals, clearances, licences and the like
vested with the previous lessee:
Provided further that the provisions of sub-
section (1) of section 6 shall not apply where such
mining lease is granted to a government company
or corporation under the first proviso:
Provided also that in case of atomic
minerals having grade equal to or above the
threshold value, all valid rights, approvals,
clearances, licences and the like in respect of
expired or terminated mining leases shall be
deemed to have been transferred to, and vested
in the Government company or corporation that
has been subsequently granted the mining lease
for the said mine.
(2) Notwithstanding anything contained in
any other law for the time being in force, it shall
be lawful for the new lessee to continue mining
operations on the land till expiry or termination of
mining lease granted to it, in which mining
operations were being carried out by the previous
lessee."
3.4.1 In view of the Amendment of 2020 in the MMDR Act, the
Rules called The Minerals (Other than Atomic and Hydro
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Carbon Energy Minerals) Concession Rules, 2016 were
amended to insert Rule 9A, of which sub-section (4) provided
as under,
"(4) The vesting order issued under this
rule shall be valid for a period of two years from
the date of execution of new lease deed or till the
date of getting all fresh approvals, clearances,
licenses, permits, and the like, whichever is
earlier."
3.4.2 Sub-rule (4) of Rule 9A was again amended on 2nd
November 2021 to be as under,
"(4) In case the new lessee proposes any
change in the conditions attached to the
approvals, clearances, licenses, permits, and the
like, transferred under the vesting order, the
lessee will obtain the approval of the same, under
the laws for the time being in force."
3.4.3 Sub-rule (5) of Rule 9A was amended pursuant to
Amendment of 2020 was thus,
"(5) It shall be lawful for the new lessee to
commence and continue mining operations on the
land in which mining operations were being
carried out by the previous lessee, after the
execution of the lease deed for a period of two
years as provided in Section 8-B of the Act:"
3.4.4 It was further amended as under,
"(5) It shall be lawful for the new lessee to
commence and continue mining operations on the
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land in which mining operations were being
carried out by the previous lessee, after the
execution of the lease deed till expiry of
termination of mining lease granted:"
3.4.5 It is also relevant to note Section 2 of the Forest
Conservation Act, 1980 which deals with the de-reservation of
the forests or use of forest land for non-forest purpose,
"2. Restriction on the de-reservation of
forests or use of forest land for non-forest
purpose-
Notwithstanding anything contained in any
other law for the time being in force in a State, no
State Government or other authority shall make,
except with the prior approval of the central
Government, any order directing,-
(i) ...
(ii) that any forest land or any portion thereof
may be used for any non-forest purpose;
(iii) ...
(iv) ...
Explanation.- ...
(a) ...
(b) ..."
3.5 A vesting order dated 25th March 2022 came to be
issued by the Nodal Officer-respondent No.1, providing that all
valid rights, approvals, clearances, licences and like which
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were with previous lessee-M/s. Auro Minerals in respect of ML
No.2584 would deem to have vested in favour of the petitioner.
In that view, different departments and agencies submitted
various approvals to respondent No.1 through respondent No.2
which included, among other documents and approvals, Forest
Clearance No.FEE 30 FFM 2020, Bengaluru dated 19th June
2020 in respect of land to the extent of 30 hectares.
3.5.1 The petitioner thereafter stated that in compliance of
conditions of the tender document, the petitioner made
payment towards upfront amount, first instalment amount,
towards expenses incurred by the State Government, and
thereafter also deposited the second and third installments of
upfront payment, by paying the total of Rs.8,76,07,425/- and
also the stamp duty amount. It was stated that new mining
lease bearing ML No.0019 came to be executed on 18th April
2022 in favour of the petitioner for Iron Ore and Manganese
Ore for a period of 50 years.
3.5.2 It was stated that the forest lease agreement was
entered into on 18th August 2022, that the petitioner made
payment of Rs.2,32,50,000/-, and that the State Level
Environment Impact Assessment Authority, Karnataka issued
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environmental clearance and the environmental clearance
granted to the erstwhile lessee which was transferred in favour
of the petitioner in 26th July 2022. A consent of operation came
to be extended by the Karnataka State Pollution Control Board
which was dated 3rd November 2008 in favour of the erstwhile
M/s. Auro Minerals, which was extended on 3rd February 2024.
The working permission was granted to the petitioner on 24th
August 2022.
3.6 It is the case of the petitioner that it was to its shock and
surprise that the impugned show cause notice dated 8th April
2024 was received from respondent No.5-Deputy Conservator
of Forest, notwithstanding. It is the grievance of the petitioner
there was no question of ordering cessation of mining activity
and it could not have been viewed that the period had expired
for permission in view of clause (a) of the guidelines dated 31st
March 2020, and that fresh guidelines were issued by Ministry
of Environment and Forest on 7th July 2021, however, the
authority placed reliance on the guidelines dated 31st March
2020 and the vesting order to suggest that the approvals
including the validity of Forest Clearance had expired on 17th
April 2024, with completion of two years.
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3.7 The petitioner rested and erected its case on the
Amendments brought about in the MMDR Act in the year 2020
and the year 2021, whereby Section 8B was respectively
inserted and substituted in the statute book. It is the case that
deeming provision was inserted by 2020 Amendment Act,
whereby the successful bidder would acquire all valid rights,
approvals, clearances, etc. for a period of two years. It was
then submitted that as per the substituted Section 8B in the
year 2021, it was contemplated that all valid rights, approvals,
clearances, etc. granted in respect of the mine shall continue to
be valid even after expiry or termination of lease and that they
shall stand vested in the successful bidder of the mining lease
selected in auction, subject to the conditions provided under
the laws.
3.7.1 It was stated by the petitioner that it was entitled to the
benefit of aforesaid Amendments in the provision, therefore, all
approvals and clearances including the forest clearance stood
automatically extended to continue uninterrupted till the expiry
of lease period. It was stated that petitioner took steps to write
to respondent No.5 to expedite the process of transfer of forest
clearance, and that the petitioner submitted necessary report of
the conditions mentioned in the guidelines dated 7th July 2021.
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3.8 The crux of the case of the petitioner, thus, appears to
be that by virtue of the latest amendment in Section 8B of the
Act, all the approvals and clearances including Forest
Clearance shall get transferred to the holder of the letter of
intent to continue to hold good even after expiry and that the
cap of two years' period contemplated was lifted and the same
would not operate.
4. Assailing the impugned stoppage order, learned Senior
Advocate Mr. D.L.N. Rao assisted by learned Advocate for the
petitioner, raised the following submissions,
(i) The petitioner was declared as preferred bidder and a
letter of intent was issued in its favour on 08.02.2022. By
amendments, deeming provision was inserted, whereby it was
provided that successful bidder would acquire all valid rights,
approvals, clearances etc which were vested with the previous
lessee, for a period of two years.
(ii) Consequentially, Forest Clearance under the Forest
Conservation Act, 1980 (hereinafter referred to as the 'Forest
Act') also stood extended in favour of the petitioner for a period
of two years in respect of the auctioned blocks whose lease
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expired under Section 8A(5) and 8A(6) of the 1957 Act
automatically.
(iii) No intervention of law was required as the provision
would automatically operate and the petitioner would get
benefit thereof.
(iv) The petitioner paid Rs.1,90,30,826/- towards first
installment on 29.01.2022 of the upfront payment; amount of
Rs.18,52,600/- was paid towards expenses incurred by the
State; second and third installments towards upfront payment
to the extent of Rs.1,90,30,826/- and Rs.5,70,92,477/- were
deposited on 09.02.2022 and 06.04.2022 respectively. The
petitioner also paid the stamp duty.
(v) The vesting order dated 25.03.2022 provided that all
valid rights, approvals, clearances etc which were available
with the previous lessee M/s. Auro Minerals would vest with the
petitioner.
(vi) By virtue of the amendment in 2021, Section 8B of 1957
Act, provided that all valid rights, approvals etc which were
vested shall automatically continue to be valid even after expiry
of termination of lease. As a result of this amendment, two
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years period stood obliterated and the valid consents and
clearances were transferred to the holder of the Letter of Intent
to continue to hold good even after its expiry. Section 8B as it
stood prior to 2021 amendment ceased to exist, therefore,
limitation of two years stood lifted to remain valid.
(vii) The statement of objects and reasons accompanying the
2021 amendment was highlighted to state that the changes
brought to Section 8B was to maintain continuity in mining
operations after change of lessee.
(viii) The impugned stoppage notice stands in contravention
of the statutory provisions contained in Section 8B of the 1957
Act brought about by 2021 amendment.
(ix) The stoppage notice came to be mechanically issued
without considering the fresh guidelines issued by the Ministry
of Environment, Forests and Climate Change on 07.07.2021.
(x) Section 8B(2) as amended in 2021 operates in favour of
the petitioner to provide that it shall be lawful for the new
lessee to continue mining operations on the land till expiry or
termination of mining lease granted to it.
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(xi) In the impugned notice issued, the Deputy Conservator
of Forests - respondent No.5 by wrongly relied on the previous
guidelines dated 31.03.2020 issued by the Ministry of
Environment, and erroneously concluded that period of two
years for vesting of all consents and approvals expired on
17.04.2024.
(xii) Learned Senior Advocate relied on the decision of the
Supreme Court in Mohinder Singh Gill vs. The Chief
Election Commissioner [AIR 1978 1 SCC 405], to highlight
the principle that order of the statutory authority when based on
particular set of grounds, the ground cannot be improved upon
or supplemented by way of affidavit.
4.1 Learned Additional Government Advocate Smt. Niloufer
Akbar for respondent-State raised her submissions on the
basis of a detailed statement of objections-cum-reply affidavit
filed on behalf of the respondents. After highlighting the factual
details, it was contended that the requirement of obtaining
Forest Clearance, though corresponding, but was an
independent requirement. It was submitted that, the Forest
Clearance which was given by the Ministry of Environment in
favour of the previous lessee lasted till 2019 and subsequently
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because of deeming extension until 22nd May 2021 and
thereafter finally expired on 17th April 2024 upon completion of
two years period calculated from the date of grant of lease to
the petitioner. It was submitted that this extension was due to
deeming fiction, however remained upto two years.
4.2 Learned Additional Government Advocate took the Court
through Section 8B as amended by Amendment of 2020 and
further amended as per Amendment Act of 2021 to submit that
the outer limit of two years was never done away with. It was
submitted that the guidelines dated 31st March 2020 read with
guidelines dated 7th July 2021 of the Ministry of Environment
and Forest were applied to the petitioner which made in
incumbent for the petitioner to obtain fresh Forest Clearance
after 2 years.
4.3 It was emphatically submitted that in Section 8B of the
MMDR Act as amended in 2020 and 2021, contained the
words 'valid' and 'subject to the conditions provided under such
laws.' It was contended on one hand, the Forest Clearance of
the erstwhile lease holder was not valid for several defects,
and at the end of two years, it was the onus in law on the
petitioner to get it removed, for, the forest clearance was
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vested and was transferred in its favour accordingly only. It
was highlighted that Working Permission mentioned that two
years period was the validity period for the Forest Clearance.
She relied on Section 2(ii) of the Forest Conservation Act
which prohibits the use of any forest land or portion thereof for
non-forest purpose, without prior approval of the Central
Government.
5. Having noticed the controversy and the contentions, it
will be useful, before proceeding further, to trace and highlight
the basic undisputed facts available from the pleadings and the
record. Initially, in respect of North-East range block of
Kalahalli, mining lease deed was made in favour of one Shri
Krishnadeva Raya for a period of 20 years on 24th July 1956
which was in Survey No.1 admeasuring 464 acres of the village
Kalahalli. The first renewal was effected in favour of one Smt.
Rani Lalkumari for 5 years as per deed dated 24th March 1977.
The second renewal was also in favour of same party by virtue
of Deed dated 22nd May 1981 for 20 years with effect from 24th
July 1981. Thus, the lease was made valid upto 23rd July
2001.
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5.1 Subsequently, the lease was transferred in favour of M/s.
Auro Minerals who was a lessee predecessor to the petitioner,
who got the lease from Smt. Rani on 7th January 1986. The
third renewal was in favour of M/s. Auro for a period of 20
years with effect from 23rd May 2021 for which the lease deed
was executed. The period of this lease in favour of M/s. Auro
expired on 22nd May 2021. As stated above, it is a lease for 31
hectares of land. The Ministry of Environment and Forest,
Government of India accorded approval on 13th May 1999 for
Forest Clearance under Section 2 of the Forest Conservation
Act, 1980 for the said land which was made coterminus with
the period of mining lease. This Forest Clearance expired on
12th May 2019. On 19th June 2020, approval was accorded for
extension upto 22nd May 2021.
5.1.1. The present petitioner became successful bidder on 21st
January 2022 and as already stated above, Letter of Intent was
issued. The approval including the Forest Clearance which
stood in favour of M/s. Auro Minerals-the previous lessee, as
given and extended as above, was transferred and allotted to
the petitioner. It expired, to be stated at the cost of repetition,
on 22nd May 2001. The guidelines of the Ministry dated 31st
March 2020 permitted the Forest Clearance to operate for two
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years. The forest lease agreement dated 18th August 2022, the
vesting order and other documents reflected expressly the
condition about validity of Forest Clearance for 2 years.
Working permission dated 24th August 2022 given to the
petitioner also clearly mentioned the same in its stipulation.
These documents are highlighted for their effect in the
succeeding stages of discussion.
5.1.2 The Central Government promulgated the 2020
Amendment providing in Section 8B of the Act inter alia that
successful bidderof the leases, which expired under sub-
Section (5) and sub-Section (6) of Section 8A of Amendment
Act, 2015 shall be deemed to have acquired all 'valid' rights,
approvals, clearances, etc. The new Act of 2020 provided that
it will be permissible for new lessee to continue the mining
operations carried out by the previous lessee, for a period of
two years from the date of commencement of new lease. It is
to be noticed that the erstwhile lessee-M/s. Auro Minerals had
the lease period of 20 years with effect from 23.05.2001 under
the MMDR Act, 1957 and this period of 20 years got over on
22.05.2021. It is to be further noted that the Forest Clearance
accorded to the said erstwhile lessee, which was under Section
2 of the Forest Conservation Act, 1980, was co-extensive with
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the lease period to last until 22.05.2021 which was the date of
expiry of the 'validity' of the Clearance.
5.1.3 It may be true that by virtue of deeming provision in
Section 8B inserted as per the Mineral Law (Amendment)
2020, the said Forest Clearance which expired on 22.05.2021
was treated as continuous, however, only for two years, within
which or whereafter the petitioner was obliged to seek the
renewal. When the auction was ended in favour of the
petitioner, the said Forest Clearance standing in the name of
erstwhile lessee-M/s. Auro, subsisted. However, on the date of
execution of the lease agreement, though it had expired for its
validity, by virtue of the deeming fiction, it was treated as valid
to vest with the petitioner to continue for two years. It ceased
to remain valid after two years.
5.2 The obligation for the petitioner to get Forest Clearance
renewed after two years, in addition to operation of law, arises
from the following considerations.
5.2.1 The guidelines dated 31st March 2020 issued by the
Ministry of Environment and Forest in light of the Mineral Laws
(Amendment) Act, 2020 read with the guidelines dated 7th July
2021 issued by the Ministry which was pursuant to the Mines
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and Minerals (Development and Regulation) Act, 2021,
operated to bind the petitioner in the above regard.
5.2.2 The above guidelines dated 31st March 2020 as
contained in the letter of the Principal Secretary, Forest,
addressed to all State and Union Territories, are reproduced
hereunder,
"Government of India
Ministry of Environment, Forest and Climate
Change
(Forest Conservation Division)
Indira Paryavaran Bhawan,
Aliganj, Jorbagh Road,
New Delhi-110003
Dated: 31st March, 2020
To,
The Principal Secretary (Forests),
All State/UT Governments
Sub: Guidelines under Forest (Conservation)
Act, 1980, in pursuance of the "The Mineral
Laws (Amendment) Act, 2020" - regarding.
Sir,
The Central Government has
promulgated 'The Mineral Laws (Amendment)
Act, 2020', on 13th March, 2020, which inter-alia
provides that successful bidder (i.e. the new
lessees) of the mining leases expiring under
the provisions of sub-section (5) and (6) of
Section 8A of Mines and Minerals
(Development & Regulation) Amendment Act,
2015, shall be deemed to have acquired all
valid rights, approvals, clearances, licenses
and like vested with the previous lessee for a
period of two years. The said new Act also
- 25 -
provides that it will be lawful for the new lessee
to continue mining operations on the land, in
which mining operations were carried out by
the previous lessee, for a period of two years
from the date of commencement of new lease.
Therefore, in the light of promulgation of
the above said Act, the matter related to the
validity of the approvals granted under Forest
(Conservation) Act, 1980 (FCA-1980) was
examined in the Ministry. After careful
consideration of the issue with a view to align
the provisions of relevant guidelines under the
Forest (Conservation) Act 1980 in pursuance of
the concerned provisions under 'The Mineral
Laws (Amendment) Act, 2020', para 7.3(vi), as
given under, is inserted in Chapter-7 of the
Handbook of Forest (Conservation) Act, 1980:
a. A new lessee of the mining leases
expiring under the provisions of sub-section (5)
and (6) of Section 8A of Mines and Minerals
(Development & Regulation) Amendment Act,
2015, shall be deemed to have acquired all
valid rights, approvals, clearances, licenses
and like vested with the previous lessee for a
period of two years. The new lessee shall
continue mining operations on the land, in
which mining operations were carried out by
the previous lessee, for a maximum period of
two years from the date of commencement of
new lease on the same terms and conditions
which was stipulated in the approval under
FCA-1980, obtained by the previous lessee.
b. The new lessee, after obtaining Letter
of Intent (Lol), shall obtain approval under the
FCA-1980 following due procedure, for non-
forestry use of forest land falling in such mining
lease for continuing mining operation beyond
two years during which it has deemed to have
acquired rights to undertake mining operation.
In case, approval under the FCA-1980 is not
obtained within the stipulated time of two years
- 26 -
of commencement of lease by the new lessee,
the mining operation shall be stopped till such
approval has been obtained.
c. While obtaining approval under the
provisions of FCA-1980 as per clause (b)
above, the new lessee shall pay the Net
Present Value (NPV) for the total forest area
located within the mining lease, along with any
other amount due as per guidelines issued by
Government of India from time to time.
However, on the date of issuance of Lol, the
state government shall realize a lump sum
amount at the rate of Rs 7.50 lakh per ha (for
the total forest area within the mining lease)
from the new Lol holder. This amount shall be
deposited into the account of CAMPA, which
will be adjusted against actual compensatory
levies payable on the forest land, at the time of
approval as per clause (b) above.
This issues with the approval of
competent authority.
Yours faithfully,
Sd/-
(Sandeep Sharma)
Assistant Inspector General of Forests"
5.2.3 In the context of the above guidelines, it is to be noted
that when the petitioner was allotted lease and the lease deed
was executed in his favour on 18th April 2022, the guidelines
applied for their conditions. It was provided in the aforesaid
guidelines inter alia that new lessee shall continue the mining
operations on the land in which such operations were carried
out by the previous lessee, for maximum period of two years
- 27 -
from the date of commencement of new lease on the same
terms and conditions which were stipulated in the approval
under the Forest Conservation Act, 1980, as obtained by the
previous lessee.
5.2.4 The conditions further contemplated that the new lessee
after obtaining the Letter of Intent shall obtain approval under
the Forest Act for the non-forest use of the forest land falling in
such mining lease, if the mining operations are to be continued
beyond two years. The petitioner as an auction purchaser,
deemed to have acquired the mining rights for the period of two
years. The guidelines further stipulated in clear terms that if
the approval under the Forest Act is not obtained within two
years, the mining operations would be liable to be stopped and
discontinued till such approval is obtained.
5.2.5 In other words, the guidelines dated 31st March 2020
required the petitioner to obtain Forest Clearance approval
within two years from the date was granted the mining lease by
executing the lease deed upon becoming a successful auction
bidder. It is to be recollected that the mining lease was
executed on 18th April 2022 and the two years period expired
on 17th April 2024. The petitioner was enjoined to obtain the
- 28 -
Forest Clearance afresh. Within two years such clearance was
not obtained. The provisions of Amendment of 2020 and the
aforesaid guidelines issued in light of the amendment in the
Section 8B of the Act stand in harmony to bind the petitioner
with regard to condition of two years' validity for the Forest
Clearance.
5.3 It was the contention canvassed in vain by the petitioner
that the above position was lifted when new guidelines were
issued on 7th July 2021 pursuant to amendment of 2021 in the
Mines and Minerals (Development and Regulation) Act, 1957.
It could be seen from the contents of the new guidelines also
that the conditions which operated erstwhile, were made to
continue to apply.
5.3.1 In order to appreciate the above, the relevant part of the
guidelines dated 7th July 2021 is extracted hereinbelow,
"In light of the above provisions of the
MMDR Amendment Act 2021, the matter
related to the validity of the approvals granted
under Forest (Conservation) Act, 1980 (FCA-
1980) was examined in the Ministry, and with a
view to align the provisions under the two Acts,
it has been decided that transfer of approval
under FCA-1980 in such mining leases may be
considered subject to the following conditions:
- 29 -
i. Complete compliance of such terms
and conditions as stipulated in the approval
granted previously under the FCA-1980, and
rules and guidelines framed thereunder in
respect of the concerned mining lease has
been made. The non-compliance of conditions,
if any, stipulated in the approval granted to the
erstwhile agency under FCA-1980, which were
required to be complied before handing over
the forest land to such agency, shall be
transferred as liabilities to the new allocattee,
and in such case, complete compliance of such
conditions shall be made prior to handing over
of forest land to the new allocattee. For the
remaining conditions, the new allocattee will
make an undertaking to comply with, before
handing over of the forest land. It is clarified
that in case of violation of any of the conditions
which was done during the period of previous
allocattee and which constitutes an offence
under the FCA-1980, the penal clauses will be
invoked against the previous allocattee only
and not against the new allocattee.
ii. Approval under FCA-1980 was valid
on the date of expiry of previous lease.
iii. Mining operations will be restricted to
the forest area for which approval under
Section 2 (ii) of the FC Act, 1980 has been
obtained by the erstwhile user agency. No non-
forest use of such forest lands falling within the
lease shall be allowed, for which approval
under Section 2(ii) has not been obtained by
the State Government. Mining in such areas
may be allowed only after obtaining prior
approval of the Central Government under
Section 2 (ii) of the FCA-1980.
iv. The State Government shall ensure
that the amount of Net Present Value, Safety
Zone Plantation and Compensatory
Afforestation (CA), if not deposited earlier, has
been deposited prior to handing over of the
- 30 -
forest land to the new allocattee. Also, in case
the CA land has not been made available
previously, the forest land shall be handed over
to the new allocattee only after the
corresponding CA land has been accepted by
the competent authority as per the extant
procedures for acceptance of CA lands for a
new proposal.
v. Mining operations and other activities
shall be carried out as per the land-use allowed
in the approval under the FCA-1980. Any
change in the land use on account of any valid
reason shall be effected with the prior approval
of the Central Government.
vi. Reclamation of the mined out forest
area in the whole lease area as per the
approved Mining Plan shall be an obligatory
condition for the new allocattee.
vii. Transfer fee, as prescribed in the
relevant guidelines incorporated in the
Handbook of Forest (Conservation) Act, 1980
shall be realized from the new allocattee and
deposited into the account of CAMPA of the
State concerned.
viii. Transfer of approvals to new agency
may be accorded by the concerned State
Government/UT Administration subject to
fulfilment of conditions/ provisions stipulated in
the relevant guidelines of the Ministry.
This issues with the approval of the
competent authority in the Ministry.
Yours faithfully,
Sd/-
(Sandeep Sharma)
Assistant Inspector General of Forests"
- 31 -
5.3.2 As could be seen from the above quoted condition (i) in
the guidelines dated 7th July 2021, it provides for compliance of
such terms and conditions provided for in the previously
granted approval under the Forest Conservation Act, 1980, and
the rules and guidelines thereunder. It states that the non-
compliance of such conditions on the basis of which the
approval was granted to the erstwhile agency under the Forest
Act would be required to be complied with. The forest approval
has to be valid on the date of expiry on the previous lease, as
stated in condition No.(ii). As per condition No.(iii) above, it is
stipulated that though the non-forest use of forest lands falling
within the lease may be allowed, the mining in such area will be
permissible only after obtaining prior approval of the Central
Government under Section 2(ii) of the Forest Conservation Act,
1980. It could not be said, therefore, by any stretch of logic,
that the two years condition stood omitted or obliterated.
5.3.3 The Government of India, Ministry of Environment
issued consolidated guidelines and clarifications under Van
(Sanrakshan Evam Samvardhan) Adhiniyam, 1980 (renamed
Forest Conservation Act) and Rules of 2023.
- 32 -
5.4 The stipulation that the forest land is extended for mining
purpose under the Forest Act, 1980 for maximum period of two
years is a condition which is applied and incorporated to bind
the petitioner, as a common thread in all correspondence and
documentations entered into with regard to the grant of lease.
5.5. Came to be issued in favour of the petitioner a vesting
order dated 25th March 2022 by respondent No.1-Nodal Officer,
which was under Section 8B of the MMDR Amendment Act,
2020 in respect of mining lease in question No.2584 which then
stood in the favour of M/s. Auro Minerals and expired under
Section 8A(6) of the MMDR Act, 1957. The copies of the valid
approvals mentioned therein which were in favour of the
previous lessee M/s. Auro included Forest Clearance dated
19th June 2020.
5.5.1 The aforestated vesting order/Government Order dated
25th March 2022 read as under,
"Pursuant to the Notification E - CI 31
MMM 2020 dated 02.04.2020 and in exercise
of the powers conferred under Rule 9(A)(2) of
the Minerals (Other than Atomic and Hydro
Carbons Energy Minerals) Concession
(Amendment) Rules, 2020 and 2021, I hereby
order that all the valid rights, approvals,
clearances, licenses and like vested with the
previous lessee in respect of M/s. Auto
- 33 -
Minerals, M L No.2584 are deemed to have
vested in favour of the Successful Bidder i.e.,
M/s. Minera Steel and Power Pvt. Ltd., on the
same terms and conditions of every rights,
approvals, clearances, licenses and like which
vested with previous lessee with following
conditions:
1. The Maximum Permissible Annual
Production and Dispatch shall be strictly as
per Mine Development Agreement and as
approved by CEC time to time.
2. The Director, Mines and Geology shall
execute Mine Development Agreement and
Mining Lease Deed upon payment of
statutory payments within 15 days from the
receipt of this order.
3. The Forest Department shall ascertain the
permission related to approach road and
any other payments to the Forest
Department at the time of handing over the
land to new lessee, if any."
5.5.2 It will be seen from the above that the vesting of all the
clearances including Forest Clearance in favour of the
successful bidder-the petitioner herein, was 'on the same terms
and conditions of every rights, approvals, clearances, licences
and like which vested with previous lessee'. The Forest
Clearance in favour of the previous lessee-M/s. Auro was
coterminus with the period of lease granted to the said lessee.
The Ministry of Environment and Forest by letter dated 13th
May 1999 had granted the lease which was for 20 years, which
- 34 -
ended in the year 2019. It vested in the petitioner accordingly
to be valid upto period of deemed extension.
5.5.3 With the Amendments of 2020 and 2021, by virtue of
deeming fiction, the said Forest Clearance stood extended for
further two years for the petitioner. The extension was
contemplated for the valid approval and was further subject to
the compliance of the other laws. The petitioner remained
liable in law to get it renewed after two years, and since the
petitioner failed in that, it has been facing the impugned
stoppage notice.
5.6 Forest lease agreement dated 18th August 2022 was
executed in accordance with Section 2 of the Forest
Conservation Act, 1980 read with Section 20 of the Karnataka
Forest Act, 1980. In that, condition No.(viii) (page 30 in the
statement of objection) was as under, which makes reference
of guidelines dated 31st March 2020 and maximum period of
two years period.
"(8). The forest land scheduled has been
extended only for mining purpose under the
Forest (Conservation) Act, 1980 for maximum
period of two years from the date of
commencement of new lease (as per clause
No.(a) of the guidelines Dt. 31.03.2020) or till
Stage-II Approval under the provisions of
- 35 -
Forest (Conservation) Act, 1980 is obtained or
till a date that the State Government or
Government of India so decide, whichever is
earlier."
5.6.1 Furthermore, following additional condition was
incorporated,
"Whereas, in pursuance of the directions
issued by the Government of Karnataka (vide
letter No. APAJI 54 FFM 2022 Dt. 01.08.2022),
the Principal Chief Conservator of Forests
(Head of Forest Force), Karnataka Bangalore
(vide letter No. KFD/HOFF/A5-1(MNG)/3/2022-
FC Dt. 03.08.2022) and the Chief Conservator
of Forests, Ballari Circle, Ballari (vide letter No
M1/MNG/REW/CR-10/2003-04 Dt.11.08.2022)
and in general consideration of various
guidelines/orders/directions of the State
Government or Government of India from time
to time, following additional conditions are
incorporated as part of this Agreement;
1. As specified by the Ministry of
Environment, Forest & Climate Change (FC
Division), Government of India (vide Guidelines
issued in File No. 11-97/20178-FC Dt.
31.03.2020) the Lessee shall continue mining
operations on the land, in which mining
operations were carried out by the previous
lessee for maximum period of two years from
the date of commencement of new lease (as
per clause No.(a) of the guidelines
Dt.31.03.2020] or till Stage-II Approval under
the provisions of Forest (Conservation) Act,
1980 is obtained or till a date that the State
Government or Government of India so decide,
whichever is earlier. If the Lessee does not
obtain necessary approvals within the
stipulated time, the mining operations shall be
stopped till such approvals are obtained."
- 36 -
5.7 Thereafter followed was Working Permission dated 24th
August 2022 granted to the petitioner in respect of the lease
auction in its favour. The relevant part of the Working
Permission, imposing two years stipulation is extracted
hereinbelow,
"M/s. Minera Steel & Power Private
Limited (the Lessee/User Agency in respect of
ML No. 0019), is hereby permitted to carry out
mining in the 31.00 Ha of Forest Land in of
forest land in Kallahalli Village, Hospet Taluk,
Ballari Dist for maximum period of two years
from the date of commencement of new lease
[as per clause No.(a) of the guidelines
Dt.31.03.2020) or till Stage-II Approval under
the provisions of Forest (Conservation) Act,
1980 is obtained or till a date that the State
Government or Government of India so decide,
whichever is earlier, with all terms & conditions
which are stipulated in the Forest Lease
Agreement Dt. 18.08.2022. Further,
(1) As specified by the Ministry of
Environment, Forest & Climate Change
(FC Division), Government of India (vide
Guidelines issued in File No.11-
97/20178-FC Dt. 31.03.2020) the Lessee
shall continue mining operations on the
land, in which mining operations were
carried out by the previous lessee, for
maximum period of two years from the
date of commencement of new lease [as
per clause No. (a) of the guidelines
Dt.31.03.2020] or till Stage-II Approval
under the provisions of Forest
(Conservation) Act, 1980 is obtained or
till a date that the State Government or
Government of India so decide,
whichever is earlier. If the Lessee does
- 37 -
not obtain necessary approvals within the
stipulated time, the mining operations
shall be stopped till such approvals are
obtained.
(2) The Lessee shall carry out mining
activities as per the conditions mentioned
in the Agreement No 03/2022-23
(Registered Vide No. HSP-1-02454-
2022-23 Dt.18.08.2022) and as per the
conditions stipulated by the Govt of India
and Govt of Karnataka. This working
permission shall be cancelled/ revoked in
case any violations/deviations from the
said conditions or violations/ deviations
from any of the Orders/
Guidelines/Directives issued from the
Government from time to time.
(3) The Lessee shall submit all such
reports as specified under various
provisions of Forest (Conservation) Act,
1980 from time to time.
(4) For general ecological considerations
and in the interest of conservation of
wildlife in the region, the Lessee shall not
carry out any mining operations or
related activities in the leased area from
6.00 PM to 6.00 AM.
(5) The Lesse shall not deface the forest
boundaries, use any area for
construction of road, sheds, etc. and
shall not operate beyond the limit of the
forest land assigned by the Government.
(6) The Lessee shall not cut trees without
prior permission of the authorized Forest
Officers and all such trees felled with the
written permission issued from the
competent authority should be handed
over to the Forest Department under
cover of receipt.
- 38 -
(7) The Lessee shall abide by all such
conditions imposed by various authorities
including the Maximum Permissible
Annul Production (MPAP) limit.
(8) The lessee shall seek necessary
approvals (as prescribed under the
provisions of Forest (Conservation) Act,
1980) for use of Approach Road outside
the leased forest land from competent
authority. No additional forest land shall
be allowed to be used by the lessee
without such approvals.
(9) The Lessee shall take up necessary
activities as per the approved
Reclamation & Rehabilitation of the
erstwhile Lessee till the new R&R plan is
approved in favour of the Lessee.
(10) Failure on part of lessee to adhere
to the undertaking given by the Lessee
(including non compliance of conditions
stipulated by the Govt of India & Govt of
Karnataka) will leads to cancellation/
revoking of this work order.
(11) The Working Permission issued is
subject to the directives/guidelines
issued by the Ministry of Environment,
Forest & Climate Change (FC Division),
Government of India (vide File No. 11-
97/20178-FC Dt. 31.03.2020) and any
other guidelines/orders/directions from
the Govt of India, Govt of Karnataka or
Principal Chief Conservator of Forests
(Head of Forest Force) on the matter
from time to time.
Sd/-
Deputy Conservator of Forests,
Ballari Division, Ballari"
- 39 -
5.7.1 Thus the working permission also incorporated as part
of conditions, what was stipulated in guidelines dated 31st
March 2020 as also the condition mentioned in the Forest
Lease Agreement dated 18th August 2022 to reiterate that the
mining was permitted to be carried out for maximum period of
two years from the date of commencement of new lease and
that thereafter the approval under the Forest Conservation Act
shall be required, in absence of which the mining operations
shall be liable to be stopped.
5.8 Thus, the condition that the lessee shall continue mining
operations in the previous lease which is granted to him, for
maximum period of two years from the date of commencement
of the lease as per the guidelines dated 31st March 2020 or till
Stage II Approval under the provisions of the Forest
Conservation Act, 1980 and that in absence of Forest
Clearance afresh obtained within that time or thereafter, will
lead to stoppage of mining operations, continued to figure in
each of the relevant documents, making it part of mandatory
conditions to be observed by the lessee. It is not permissible in
law for the lessee to back out and contend that notwithstanding
the stipulations agreed by it, they would not apply to it.
- 40 -
5.9 Not only that the above referred documents, and the
conditions and covenants therein operate to bind the petitioner,
requiring the petitioner to obtain a fresh Forest Clearance, even
the petitioner understood in the same way, and was inclined to
apply the said condition accordingly by obtaining the clearance
again since the period of two years had expired.
5.9.1 The above becomes evident from the contents of letter
dated 3rd June 2022 addressed by the petitioner to respondent
No.1-the Principal Chief Conservator of Forests, the Nodal
Officer (FC), which letter is reproduced herein below,
"Our Ref.No.: 32/22-23
Date: 03.06.2022
To
The Principal Chief Conservator of Forest,
The Nodal Officer (FC),
Aranya Bhavan, 18th cross,
Malleswaram,
Bangalore-560003
Dear Sir,
Sub: Requesting to give directions to DCF,
Ballari to issue demand notice as per the
MoEF&CC guidelines dated 31.03.2020
in respect to auctioned iron ore block ML
No. 0019 granted to M/s. Minera Steel &
Power Pvt Ltd. over an extent of 32.05
Ha in NEB Range, Kallahalli Village,
Hospet Taluk, Ballari District- Reg.
- 41 -
Ref:
1. Government order no. CI 38 MMM
2022, Bengaluru dated: 25.03.2022.
[Vesting order under section 8B of
MMDR Amendment Act, 2021]
2. MoEF&CC, New Delhi File No. 11-
97/2018-FC, Dated 31st March 2020.
With reference to the above subject, we
would like to bring to your kind notice that, we
M/s. Minera Steel & Power Private Limited had
participated in electronic auction conducted by
the State Government for grant of a Mining
Lease of the mine block M/s Auro Minerals in
Ballari District over an extent of 32.05 Hectare
Forest Land for mining of Iron Ore and became
successful bidder. By way of vesting order
(Ref-1) issued under Section 8B of MMDR
Amendment Act 2021, the State Government
has entered into MDPA and lease deed was
executed on 18.04.2022.
As per the guidelines of MoEF&CC, New
Delhi dated 31st March 2020 (Ref-2), provisions
of this guidelines are reproduced below:
(a) "A new lessee of the mining leases
expiring under the provisions of sub-
section (5) and (6) of Section 8A of
Mines and Minerals (Development &
Regulation) Amendment Act, 2015, shall
be deemed to have acquired all valid
rights, approvals, clearances, licenses
and like vested with the previous lessee
for a period of two years. The new lessee
shall continue mining operations on the
land, in which mining operations were
carried out by the previous lessee, for a
maximum period of two years from the
date of commencement of new lease on
the same terms and conditions which
was stipulated in the approval under
- 42 -
FCA-1980, obtained by the previous
lessee."
(b) "The new lessee, after obtaining
Letter of Intent (Lol), shall obtain
approval under the FCA-1980 following
due procedure, for non-forestry use of
forest land falling in such mining lease for
continuing mining operation beyond two
years during which it has deemed to
have acquired rights to undertake mining
operation. In case, approval under the
FCA-1980 is not obtained within the
stipulated time of two years of
commencement of lease by the new
lessee, the mining operation shall be
stopped till such approval has been
obtained."
In light of the above said guidelines, it
will be lawful for the new lessee to continue
mining operations on the land (where
mining operations were being carried out by
the previous lessee up to 22.05.2021 (lease
expired) with valid forest clearance) for a
period of two years from the date of
commencement of new lease. However, as
per clause (c) of the above said guidelines as
reproduced below;
(c) While obtaining approval under the
provisions of FCA-1980 as per clause (b)
above, the new lessee shall pay the Net
Present Value (NPV) for the total forest
area located within the mining lease,
along with any other amount due as per
guidelines issued by Government of India
from time to time. However, on the date
of issuance of Lol, the state goverrument
shall realize a lump sum amount at the
rate of Rs 7.50 lakh per ha (for the total
forest area within the mining lease) from
the new Lol holder. This amount shall be
deposited into the account of CAMPA,
- 43 -
which will be adjusted against actual
compensatory levies payable on the
forest land, at the time of approval as per
clause (b) above.
We will deposit a lump sum amount at
the rate of Rs. 7.50 lakhs per Ha and request
your good office to consider this matter and
give directions to DCF, Ballari to issue Demand
Notice as per the above said guidelines which
shall be paid immediately which in turn will
allow us to operate the mines and obtain the
necessary clearances and approvals within two
years as per the provisions.
Thanking you,
For Minera Steel & Power Pvt Ltd
Sd/-
Authorized Signatory"
(Emphasis in bold supplied here)
5.9.2 The petitioner has acknowledged in its own aforesaid
letter, the applicability of guidelines of the Ministry of
Environment and Forest dated 31st March 2020. The
emphasized portion of the letter goes to indicate that the
petitioner was well aware that the lease period of the erstwhile
lease auction purchased by him expired on 22nd May 2021 and
the Forest Clearance was valid for further period of two years
only from the date of commencement of new lease.
5.9.3 Once the petitioner has agreed as above and has
understood the condition accordingly, as reflected above, it is
- 44 -
not permissible for the petitioner to resile from the obligation to
get the Forest Clearance at the expiry of two years period. In
the facts of the case, it cannot be contended that the Forest
Clearance stood automatically extended to cover the total
lease period. The petitioner cannot approbate and reprobate.
6. The law to be culled out from the amended provisions of
Section 8B and the language employed by the Legislature
operate on the same lines and cast obligation for obtaining
renewed Forest Clearance at the expiry of the period of two
years. Sub-Section (2) of Section 8B as amended as per
Mineral Law (Amendment) Act, 2020 provided in sub-Section
(2) that the successful bidder 'of the mining leases expiring
under provisions of sub-Section (5) and sub-Section (6) of
Section 8A and selected through auction' shall be deemed to
acquire rights, approvals, etc.
6.1 However, what is conspicuous to notice is that, the
providence is that 'shall be deemed to have acquired all
valid rights, approvals, clearances, licences and like
vested with the previous lessee for a period of two years'.
The proviso to Section 8B as amended indicates that 'subject
to such conditions as may be prescribed, such new lessee
- 45 -
shall apply and obtain all necessary rights, approvals,
clearances, licences and the like within a period of two
years from the date of grant of new lease'.
(Emphasis in bold supplied here)
6.1.1 Sub-Section (3) of Section 8B (Amendment Act, 2020)
also clearly contemplated that 'notwithstanding anything
contained in any other law for the time being in force, it shall be
lawful for the new lessee to continue mining operations on the
land, in which mining operations were being carried out by the
previous lessee, for a period of two years from the date of
commencement of new lease'.
(Emphasis in bold supplied here)
6.1.2 It is to be noted that what is vested in the new lessee
are 'valid rights, clearances', etc. The word 'valid' is
significantly employed by the law making authority. The period
of vesting of such valid rights and clearances is two years. As
per the Proviso, the new lessee will have to apply and obtain all
necessary rights, clearances 'within two years' 'from the date of
grant of new lease'. It is also the case of the respondent
authorities that the Forest Clearance held by erstwhile M/s.
Auro Minerals was not valid due to several defects.
- 46 -
6.1.3 Section 8B of the MMDR Act as substituted by virtue of
Amendment of 2021 with effect from 28th March 2021 could not
be said to operate to absolve the new lessee-the petitioner
herein from complying with the requirement of obtaining fresh
Clearance. The Forest Clearance/approvals were deemed to
be valid for two years from the date of commencement of new
lease and the requirement was that within that period or after
that period, it has got to be renewed. The validity of Forest
Clearance expired at the end of two years. Section 8B as
amended in 2021 again emphasized and stipulated all 'valid'
rights, approvals, clearances shall continue to be valid even
after expiry of the termination of the lease.
6.1.4 The contention of the petitioner that 2021 Amendment in
the provision permitted it to treat the clearance to be continued
to enure, could hardly be countenanced. The Forest Clearance
was coterminus with the period of previous lease which stood
extended by deeming fiction for two years in view of
Amendment of 2020 and it ceased to be valid, and became
invalid after expiry of two years. The Amendment of 2021 also
mentions a 'valid' approval or clearance, etc.
- 47 -
6.1.5 Not only that, sub-Section (1) of Section 8B
(Amendment Act of 2021) expressly stated that the valid
approvals or clearances, etc. shall continue to be valid after
expiry of termination of lease, 'subject to the conditions
provided under such laws'. Thus, the vesting under the 2021
Amendment would be governed by the word 'valid', as also
'subject to conditions provided in other laws'. Therefore, it is
clear the petitioner has no escape but to comply with the
requirement of obtaining fresh Forest Clearance, etc., in view
of the governing provisions of Section 8B of the Act to operate
as above, read with the covenants inserted in the documents
which created the lessor-lessee relationship between the
authorities-respondents and the petitioner.
6.1.6 The petitioner cannot be permitted to seek avoidance of
the mandate of law, rules, guidelines and what is agreed and
committed by it in the various terms, conditions and covenants.
6.1.7 The sequitur of the foregoing discussion is that, the
petitioner is required to seek fresh Forest Clearance which was
valid for two years from the date of execution of lease, and is
required to be treated in law accordingly. For the reasons
stated as above, the stoppage notice dated 8th April 2024
- 48 -
stands on a valid ground. The prayers and the petition cannot
be granted.
7. No case is made out. The petition is meritless. It is
hereby dismissed.
Sd/-
(N.V. ANJARIA)
CHIEF JUSTICE
Sd/-
(K.V. ARAVIND)
JUDGE
KPS
