Karnataka high court raps Centre on ore export ban

The high court on Friday asked the Union government as to why it had not taken action against the Karnataka government over the latter’s decision to ban the export of iron ore from the state.

A division bench comprising chief justice JS Khehar and justice Abdul Nazeer observed that according to Section 30 of the Mines and Mineral Development and Regulation (MMDR) Act, the central government had the suo motu power to nullify any action by a state government which encroached upon the powers of the Centre in banning the export of iron ore.

Questioning the central government’s counsel, the division bench directed him to seek instructions from his client and explain to the court, why the suo motu power was not used to initiate any action against the state.

The division bench further observed that under the Karnataka Mineral (Regulation of Transport) Rules 2008 special power of revision, the Central government could revise, on its own or an application made by any aggrieved party within the prescribed time-frame, revise any order made by a state government or other authority, in exercise of the powers conferred on it by or under this Act.

Senior counsel Uday Holla, representing VS Lad and Sons mining company, submitted that on one side, the state government said it is conserving minerals, but on the other, it was giving permission to captive mining for steel industries. “How are the minerals being conserved? The government has called for a check on illegal mining, but how will you know whether it is legal or illegal?

According to an economic survey report, ore worth Rs23,400 crore is being exported from India. But the state government says it is exporting Rs60,000 crores worth iron ore,” he argued.
The division bench later adjourned the case to October 1.
Meanwhile, the high court directed the state government to amend the Karnataka Mineral (Regulation of Transport) Rules 2008 to tighten the system of issuing permits, for transportation of minerals in the state.

The division bench headed by the chief justice JS Khehar and justice Abdul Nazeer issued the directions after going through a brief note that was submitted by the state government and the mining companies, following a discussion between both the parties.

As per the agreement, the department of mines and geology will do away with the issue of bulk permits. Separate applications will have to be filed for each permit per vehicle. The department will issue the permits after due verification and ensuring that the royalty has been paid for the quantity applied for.

The mines and geology and forest departments would post officers at the mine head so that the mineral dispatch permit (one permit per vehicle) and forest way permits are issued simultaneously. The permits will clearly display details like the mining lease number, details of lease, vehicle number, actual quantity loaded into the vehicle and duration of the validity destination.