KHALEED PASHA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) There are broadly two issues involved in this group of writ petitions. The first issue is whether the holders of patta lands in the territory of Ex-Mysuru area who are the owners of sub-soil minerals in such patta lands can be forced to obtain a permission or a licence from the State Government for carrying out quarrying operations. Broadly speaking, a patta land is a privately owned land which is classified as a patta land. The State Government has framed the Karnataka Minor Mineral Concession Rules, 1994 (for short "the said Rules of 1994") in exercise of the power under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 (for short "the said Act of 1957"). By the notification dated 12th August, 2016, the Karnataka Minor Mineral Concession (Amendment) Rules, 2016 (for short "the Amendment Rules") were published by which extensive amendments were carried out to the said Rules of 1994. The amendments were brought into force on 12th August, 2016. The amendments were made mainly to give effect to the amendments made with effect from 12th January, 2015 to the provisions of the said Act of 1957. By the Amendment Rules, Chapter-IVA was added to the said Rules of 1994 providing for grant of quarrying lease or composite licence by auction. Chapter-V which is now titled as "Permission for Quarrying Minor Minerals in Private or Patta lands" which includes Rule 32 was substantially amended firstly on 5th March 2014 by the Karnataka Minor Mineral Concession (Amendment) Rules, 2014 and subsequently by the Amendment Rules. Subrule (1) of Rule 32 as amended by the Amendment Rules provides that no person in possession of patta lands in Karnataka State in whose land sub-soil minor minerals are situated shall undertake quarrying operations of minor minerals in patta land except with a quarrying licence granted under said Chapter V. The second question is whether the amendments are constitutionally valid.

(2.) The real grievance of the petitioners in this group of writ petitions is about the amendment brought to sub-rule (1) of Rule 32 which requires the holders of patta lands to obtain a licence for quarrying the minor minerals though the persons holding the patta lands are the owners of the minerals in the sub-soil. We may note here that this issue relates only to patta lands in Ex-Mysuru area of the State of Karnataka. There are other consequential challenges to various other amendments made to Chapter-V.

(3.) Chapter-Vi which deals with the payment of royalty, dead rent, security deposit etc., also underwent major amendments. There is a challenge to the 4th proviso incorporated in Rule 36 by the Amendment Rules. There is also a challenge to sub-Rule (5) of Rule 36 of the amended Rules which requires the grantee of a quarrying lease or licence to make payment of one tenth (1/10) of the royalty amount of the highest permitted annual production quantity of the minerals mentioned in the environmental clearance, in advance, in the form of a Bank Guarantee, a Fixed Deposit, a Demand Draft or any other mode of payment, as may be specified by the Government from time to time before execution of lease or licence . There is also a challenge to Rule 36-A inserted by the amendment Rules which requires every holder of the quarry lease or licence or composite licence of minor minerals (except ordinary sand) to make payment towards the District Mineral Foundation of the district in which mining operations are carried on.