APPI REDDY Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) Background of the case: The petitioner is a dealer in sand. It has obtained Mineral Dealer Licence on 1-8-2007 from respondent No. 2 for a period of five years. The petitioner pleaded that it has purchased land in Sy. No. 45 of Bhikanelly village, Khandgoan Gram Panchayat, Bodhan, Nizamabad District, for storing/trading and selling/processing of sand. On the eve of expiry of the licence, the petitioner applied for renewal. Vide his letter dated 15-7-2012, respondent No. 2 has renewed the licence from 31-7-2012 to 30-6-2017 under Rule 4 of the A.P. Mineral Dealers' Rules, 2000 (for short "the 2000 Rules"). By order dated 25-7-2012, respondent No. 2 has cancelled the petitioner's licence on the ground that it has not submitted monthly and quarterly reports from the time of grant of the Mineral Dealer Licence. The petitioner has questioned the said order in W.P. No. 23631/2012. By order dated 3-8-2012, this Court allowed the said Writ Petition on the short ground that no notice was issued to the petitioner before cancelling the licence and that therefore the same was in violation of Rule 7(vi). Accordingly, this Court has directed that the cancellation proceedings dated 25-7-2012 be treated as show-cause-notice and the petitioner was permitted to give explanation within 15 days with the direction to respondent No. 2 to take appropriate decision thereon. The petitioner thereafter submitted its explanation and on verification of the same, respondent No. 2 has dropped further action vide his proceedings dated 10-10-2012. Respondent No. 2 has issued a fresh show-cause-notice on 29-11-2012 calling upon the petitioner to show cause why the licence granted to it shall not be cancelled as the Government has issued a new sand policy by amending the rules as per which a licence can be granted for processing/storing/stocking/selling/trading ordinary sand to any person/firm/society/company who is an allottee in terms of A.P. Minor Mineral Concession Rules, 1966 (for short "the 1966 Rules"). The said show-cause-notice was served on the petitioner on 10-12-2012. Within four days of service of the said notice, respondent No. 2 cancelled the petitioner's licence by order dated 14-12-2012. Assailing the said order, the petitioner filed W.P. No. 39507/2012. By order dated 28-1-2013, this Court allowed the said Writ Petition on the ground that though the petitioner had time till 24-12-2012 for submitting its explanation to the show-cause-notice, the order cancelling the licence was passed on 14-12-2012. Accordingly, the said was set-aside leaving it open to respondent No. 2 to pass a fresh order after taking into account the explanation submitted by the petitioner on 5-1-2013. Purporting to consider the petitioner's explanation, respondent No. 2 has passed order vide proceedings No. 716/MDR/DDNZB/2012, dated 1-2-2013 cancelling the petitioner's licence. It is this order which is called in question in this Writ Petition.

(2.) At the hearing, Sri Srinivasa Rao Bodduluri, learned Counsel for the petitioner, made the following submissions:

(3.) Though the subject of mines and mineral development is included in the concurrent List also, the entire regulation of mining activity has been taken over by the Union of India as can be seen from the declaration contained in Section 2 of the Act1, thereby denuding the State Governments of the power to make law governing the areas which are governed by the Act. Section 152 of the Act however empowers the State Governments to make Rules for regulation of grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purposes connected therewith. The Rules so made inter alia may relate to matters such as fixing and collection of rents, royalty, fees, dead rent, fines or other charges and the procedure for obtaining quarry leases, mining leases or other mineral concessions. In exercise of this Rule making power, the Government of Andhra Pradesh has framed the 1966 Rules which were brought into force w.e.f., 7-12-1967.