Y. SRINIVASA RAO Vs. STATE OF TELANGANA

JUDGEMENT

(1.) This petition filed under Article 226 of the Constitution assails the constitutionality of G.O.Ms.No.82, dtd. 7/11/2015, whereunder amendments are made to The Telangana State and Sand Mining Rules, 2015 (for short, Rules of 2015), issued in G.O.Ms.No.3, dtd. 8/1/2015. The principal challenge is made to clause (iii) of Rule 10 of Rules of 2015 and it reads thus:

(2.) The petitioner is engaged in the business of supply of sand and other material for construction activity. The petitioner has supply agreement with various companies in the State of Telangana. The Government of Maharashtra granted license for sale and transport of sand from Gadchiroli District. The petitioner transports sand from Maharashtra to Telangana. By way of impugned G.O.Ms.No.82, an amount of Rs.200.00 per metric ton is imposed in the name of 'Regulatory Charges' which is required to be paid to the Telangana State Mineral Development Corporation (Corporation). By issuing G.O.Ms.NO.82, the previous G.O.Ms.No.3, dtd. 8/1/2015 (Annexure P.1) has been amended. Because of this amendment, price of sand is enhanced in the State of Telangana. Contention of the petitioner:

(3.) Sri K. Durga Prasad, learned counsel for the petitioner, submits that as per Article 301 of the Constitution, the petitioner has a freedom of trade and commerce. Although there exists no restriction on movement of sand from one State to another State including Telangana, it is pleaded in the 'grounds' that the imposition of Regulatory Charges of Rs.200.00 per metric ton is bad in law and liable to be interfered with because (i) it runs contrary to Sec. 15(1) of The Mines and Minerals (Development and Regulation) Act, 1957 (for short, Act of 1957), (ii) the impugned Rule 10(iii) of Rules of 2015 is contrary to Article 265 of the Constitution, (iii) Sec. 15 (1A) (g) of the Act can be invoked only in respect of mines and minerals extracted from the territory of State of Telangana, (iv) the expression 'other charges' in Sec. 15 (1A) (g) means that they can be imposed in respect of mines and mineral extracted from the State of Telangana and not in respect of sand brought from outside the State of Telangana, (v) the expression 'other charges' connotes a service by the State as a 'quid pro quo' which is non-existent in the case of traders who bring sand into the State of Telangana, (vi) the traders who bring sand do not hold any lease or license from the State of Telangana and hence, Regulatory Charges cannot be levied and (vii) the levy of Regulatory Charges has no nexus with the control of price of sand and, in fact, control of price of sand is not an obligation imposed by any statute on the State of Telangana.