B. KUMARAGOWDA & SONS Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner firm seeks to impugn the notification dated 21.10.2011 issued by the Central Government in exercise of the powers conferred under Section 17A(1A) of The Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as, 'the said Act') in consultation with the State Government of Karnataka, reserving for 20 years' prospecting and mining operations in the area of 140 hectares in the North-Eastern Block Range, Bhavihalli Village, Sandur Taluk, Bellary District of State of Karnataka in favour of the Steel Authority of India Limited for its plant known as M/s. Vishveshwaraiah Iron & Steel Plant / respondent No. 3. The notification states that this would not include the area already held in prospecting licence or mining lease and declares that no prospecting licence or mining lease shall be granted within the boundary of such reserved area.

(2.) The facts giving rise to the present writ petition are being set out hereinafter:

(3.) It is the case of the petitioner that the emphasis laid on the aspect of end use of the mineral in order to grant / reserve the area in favour of respondent No. 3 is only an eye-wash and could not be the legal basis for the grant in favour of the said respondent under the said Act. Under an earlier notification dated 15.03.2003, respondents No. 1 and 2 had de-reserved the area, which had been lying reserved for 40 years, which was in close proximity to the plant of respondent No. 3 as opposed to the area in question, which was at a distance of more than 350 kms. In terms of another notification dated 10.07.2007, 12,566 acres was dereserved in Chitradurga District, which was approximately 80 kms. from the plant of respondent No. 3. Mining operations and transportation of Iron Ore in Bellary District had been suspended in terms of an Order dated 29.07.2011 passed by the Supreme Court in SLP (C) No. 7366-7367/2010 titled 'Government of A.P. & Ors. v. M/s. Oblapuram Mining Co. Pvt. Ltd. and Ors.' and the Environment Impact Assessment (EIA) study was directed to be undertaken in pursuance to an Order dated 05.08.2011 while permitting only National Mineral Development Corporation (for short, 'NMDC') to undertake mining in the area to meet the requirements of the steel industry. Certain other Orders had also been passed therein permitting Mine Ore to be lifted and monitoring the mining in the area.