Supreme Court Upholds Validity of Rajasthan’s Mineral Concession Rules Amendments – Auction Process Deemed Constitutional

07 May 2024 8:19 AM

By: Admin

In a significant ruling, the Supreme Court of India has upheld the validity of the amendments made to the Rajasthan Minor Mineral Concession Rules, 1986, introducing the auction process and rejecting pending applications for quarry licenses and mining leases. The judgment was delivered by a Bench of esteemed Justices on 1 August 2023.

The apex court, in its verdict, stated, “There is no fundamental right of the applicants to carry on mining operations. They have no vested right to seek a lease or a license.” The Court emphasized that the applicants’ expectations were not legitimate rights and held that the amendments were well within the scope of the law.

The legal challenge to the amendments was brought before the Supreme Court by aggrieved parties seeking to overturn the declaration of certain Rules as unconstitutional. However, the Court held that the power conferred by Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957, allowed the State Government to introduce the auction process and reject pending applications.

“The introduction of the auction process will bring transparency and efficiency in the allocation of mineral concessions,” the Court noted in its judgment. The decision is expected to streamline the allocation process and curb any potential malpractices.

The Court further clarified that the applicants did not have a fundamental right in mining activities, and the State Government was entitled to introduce changes in the rules to promote better management of mineral resources.

The ruling has significant implications for the mining industry in Rajasthan, as it validates the amendments aimed at improving resource allocation and promoting fair practices. The auction process is set to become the new norm for granting mineral concessions in the state.

Industry experts have welcomed the Supreme Court’s decision, stating that it will foster a more competitive environment and attract investments in the mining sector. The judgment sets a precedent for other states to adopt similar measures in the interest of better governance and efficient utilization of mineral resources.

With the apex court’s affirmation of the amendments’ constitutionality, Rajasthan’s mining sector is poised for a transformative shift, heralding a new era of transparency and accountability in the allocation of mineral concessions.

D.D-1.Aug.2023

THE STATE OF RAJASTHAN & ORS. vs SHARWAN KUMAR KUMAWAT ETC.