KISAN STONE CRUSHER Vs. STATE OF TELANGANA

JUDGEMENT

(1.) This Court vide order dtd. 14/11/2023 allowed this Writ Petition. However, upon Review Application (I.A.No. 1 of 2024) being filed by respondents, vide order dtd. 31/1/2025, this Court allowed the same and recalled the order dtd. 14/11/2023 with a direction to respondents to file counter affidavit in the Writ Petition. After filing counter by the State and reply by petitioner, this Court has taken up the present Writ Petition for final disposal with the consent of both the parties.

(2.) The case of petitioner is that pursuant to the Application made for grant of quarry lease for building stone & road metal over an extent of 1.00 Hectares in Sy.No.85 of Regulachelaka Village, Raghunadhapalem Mandal, Khammam District, quarry lease was granted in their favour for 15 years by the 3rd respondent on 26/11/2004. Accordingly, work orders were issued by the 4th respondent on 3/12/2004 and the lease was in force till 2/12/2019. Petitioner applied for renewal of Quarry lease on 17/4/2018 as per the provisions of the Telangana Minor Mineral Concession Rules, 1966 (for short, 'the Rules') and it is under consideration with the 3rd respondent. They being the Class-I contractor, is in need of mineral building stone and metal for laying roads and construction of buildings; for the effective operation of the quarry lease and for optimum utilization of the extracted mineral, petitioner had also established Stone Crusher unit for captive purpose which is being operated under the name and style of "M/s. Kisan Stone Crusher" in the nearby locality in the patta land in Sy.Nos.179,102 of Mallimadugu Village, Khammam District with unit capacity 200 TPH and it is in running condition. While things stood thus, petitioner was served with show cause notice dtd. 16/9/2020 under Rules 34 and 26(2) of 1966 Rules by the 4th respondent. It is alleged that petitioner indulged in illegal extraction of mineral to the quantity of about 1,14,398 M3 of stone and metal. Petitioner gave reply notice dtd. 29/9/2020, however, without considering the same, the impugned notice was issued wherein the Petitioner is asked to pay an amount of Rs.9,43,79,164.00 including Normal Seigniorage fee of Rs.85,79,924.00 along with 10 times penalty of Rs.8,57,99,240.00 for the alleged mineral extracted outside the lease area for excavated quantity of 1,14,398 M3 of building stone and road metal.

(3.) On the other hand, while admitting issuance of quarry lease, etcetera, it was contended on behalf of respondents that petitioner filed Application for renewal of Quarry Lease on 17/4/2018 that for processing the Application, a detailed survey and inspection was proposed and accordingly, M/s Chaitanya Geo-Surveys empanelled agency had conducted ETS survey of the subject Quarry leased area on 25/12/2018 and found that petitioner conducted operations outside the leased area as per the executed sketch. Further, the empanelled agency submitted ETS draft maps on 21/7/2020 & finalized ETS maps on 20/8/2020 and quantified the quantity of the mineral extracted from the pits developed by petitioner within and outside leased area and submitted reports to ADM&G, Khammam. As per ETS survey report and maps, ADM&G, Khammam issued show cause notice dtd. 16/9/2020 to petitioner who submitted reply dtd. 29/9/2020 requesting to drop further course of action to avoid irreparable loss mentally, physically and financially as there is no revenue loss to the Department. Dissatisfied, respondents issued demand notice. In the Revision. a reasoned and speaking order was passed as per Rules to collect normal seigniorage fee along with one time penalty and disposed the revision application.