KIRLOSKAR FERROUS INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners in the present writ petition are challenging the constitutional validity of the Explanation appended to Rule 38 of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (hereinafter "the 2016 Rules") as being ultra vires Articles 14, 19(1)(g) of the Constitution of India and Sec. 9 of the Mines and Minerals (Development and Regulation) Act, 1957 (for short "the MMDR Act") to the extent that the rule provides for inclusion of payments made towards Royalty, District Mineral Foundation ("DMF") and National Mineral Exploration Trust NMET") in the sale value. Equally, the Explanation to Rule 45(8)(a) of the Mineral Conservation and Development Rules, 2017 (hereinafter "the 2017 Rules"), which is in identical terms, is also challenged on the same ground.

(2.) The petitioners earlier filed a Writ Petition (C) No. 715 of 2024 calling in question the validity of the impugned rules. A detailed judgment was passed on 7/11/2024, and the writ petition was disposed of on 19/5/2025. During the course of hearing of the said writ petition, it was noticed that when a situation with regard to non-deduction of payments made towards Royalty, DMF and NMET from the value of coal was provided for, the Central Government remedied the situation. During the course of hearing, it was brought to the notice of the Court that, on 6/4/2021, Ministry of Mines had constituted a Committee for examining the issue and on 25/5/2021, a notice was issued by the Committee inviting comments and suggestions on this issue and pursuant thereto, a Report dtd. 31/1/2022 was submitted by the Committee to the Ministry of Mines.

(3.) It was recorded in the said judgment dtd. 7/11/2024 that pursuant to the aforesaid Report, a notice dtd. 25/5/2022 initiating public consultation on amending the MMDR Act had also been issued. The relevant portion of the notice reads as under: -