OBULAPURAM MINING COMPANY PVT LTD Vs. GOVERNMENT OF ANDHRA PRADESH SECRETARY TO GOVERNMENT INDUSTRIES AND COMMERCE DEPARTMENT

JUDGEMENT

(1.) This writ petition is filed questioning the G.O.Rt.No.723, Industries and Commerce (M.III) Department, dated 25.11.2009 issued by the Government of A.P., suspending the mining operations of the petitioner- company and others basing on the proceedings of the Principal Chief Conservator of Forests, Hyderabad, dated 6.11.2009, 20.11.2009 and the letter of Sri M.K. Jiwarajka, Member, Central Empowered Committee, dated 23.11.2009.

(2.) The case of the writ petitioner reads as follows: The petitioner-company is engaged in the business of mining iron ore pursuant to the validly executed and registered leases in District Anantapur, State of A.P. The petitioner is having three leases over an extent of (1) 25.98 Hectares in Obulapuram Forest Compartment No.695, (2) 39.5 Hectares in Obulapuram Forest Compartment No.695 and (3) 68.5 Hectares in Malpangudi Forest Compartment Nos.697 and 698, The petitioner-company has the approval for production of four million tons of iron pre per annum from lease No.1; 1 million ton of iron ore per annum from Lease No. 2, and 1.2 million tons of iron ore per annum from Lease No.3. Further, it is having all the statutory clearances including the clearance under Section 2 of the Forest (Conservation) Act, the clearance under Environment (Protection) Act and the clearance under Pollution (Control) Act and it had made all necessary applications for grant of necessary clearance under the Pollution (Control) Act and the authorities accorded necessary permissions under the said Act. The petitioner has commenced the mining operations after obtaining necessary clearance from the Pollution Control Board and is continuing the mining operations as per the norms of the Pollution Control Board. Besides the above, the Anantapur Mining Corporation, a partnership firm, owned by the promoters of the petitioner- company also holds some mining lease over an extent of 6.5 hectares in Sy.No.1 of Obulapuram village, for production of 0.8 million tons of Iron Ore per annum. Thus, the petitioner-company produces approximately 7 million tons of Iron ore from Ananthapur District. The petitioner- company having decided to set up an integrated steel plant of 10 million tons per annum capacity at Jammalamadugu, Kadapa District in order to convert the iron ore into steel, floated a subsidiary company viz., M/s. Bramhani Industries Limited in the year 2007 and commenced the construction of Steel Plant. The petitioner- company and its promoters have already invested approximately Rs.1500 Crores in the said Steel plant and the said plant is on the advanced stage of completion.

(3.) While so, the petitioner is being subjected to multifarious litigation by Mr. S.K. Modi and his company M/s. Bellary Iron Ore Pvt., Ltd., (BIOP) a neighbouring mine lease holder due to business rivalry with the petitioner. Earlier, the litigation initiated by M/s. Bellary Iron Ore Private Limited against the petitioner ended by an adverse order viz., in WA No.1540 of 2008 vide Judgment dated 15.12.2008. In the said proceedings, BIOP filed an application seeking a direction for Survey through Survey of India, While opposing the said prayer, the petitioner herein filed a detailed reply. But this Court did not accede to the request of the BIOP for a survey. The BIOP got complaints filed before the MOEF, Government of India. On that, the Government of India issued a letter dated 22.4.2009 directing the State Government to get the lease boundaries of the applicant and the BIOP surveyed through Survey of India and in the meanwhile, directed suspension of the forest clearance granted. The State Government gave a detailed reply dated 28.4.2009 bringing to the notice of the MOEF several events which were not noticed by MOEF while issuing its letter dated 22.4.2009. On being apprised by the State Government, the MOEF issued a letter dated 1.5.2009 keeping its earlier letter dated 22.4.2009 in abeyance. Then, BIOP filed independent writ petition along with S.K. Modi, its Managing Director, in W.P. No.201 of 2009 before the Supreme Court of India, under Article 32 of the Constitution of India seeking a direction to complete the survey in a time bound manner pursuant to the letter of MOEF dated 22.4.2009 through Survey of India. The said writ petition was disposed of on 1.5.2009 by recording the concessional statement made by the Counsel for MOEF agreeing to complete survey within six weeks.