SHREE RAJESH PATHAK Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) RULE. Rule made returnable forthwith and heard the learned counsel for the parties.

(2.) The competence of the State Government to require an exporter of minor minerals into the State of Maharashtra to pay an amount equivalent to 10% of royalty amount to the District Mineral Foundation constituted under Sec. 9-B of the Mines and Minerals (Development and Regulation) Act, 1957 is questioned in these writ petitions. A similar challenge is also raised by inter-State transporters of such minor minerals as the State of Maharashtra requires payment of 10% of the royalty amount to the District Mineral Foundation on entering the State borders which according to them results in imposing restrictions on inter-State trade.

(3.) In Writ Petition Nos.2078 of 2021 and 2086 of 2021, the petitioners claim to be engaged in the business of excavation and sale of sand in the State of Madhya Pradesh. The petitioners are lease holders under valid lease-deeds executed in their favour by the State of Madhya Pradesh. The petitioners sell sand that is excavated within the State of Madhya Pradesh and also export the same in the State of Maharashtra. By Circular dtd. 5/2/2021 the State Government through its Revenue and Forest Department required payment of an amount equivalent to 10% of the royalty amount to the District Mineral Foundation (for short, 'the DMF'). It is this Circular that is challenged by the petitioners who are the exporters of sand into the State of Maharashtra. The petitioners have also sought a declaration that the State Government has no authority under the Mines and Minerals (Development and Regulation) Act, 1957 (for short, 'the Act of 1957') to regulate the entry of lawfully excavated minerals from another State nor is it competent to direct the deposit of such amount with the DMF in the State of Maharashtra.