Realty jolt: Supreme Court puts stop on illegal sand mining

In a decision that will have wider repercussions on construction activity and employment, the Supreme Court on Thursday ordered stay on the illegal sand mining activities on the riverbeds in Rajasthan. All mining activities will have to be stopped with immediate effect due to lack of environment clearance.

The state government and mining lease holders can appeal after four weeks. The decision will halt movement of 5,000 trucks and render around 100,000 people jobless.

The Rajasthan government had allowed 82 lease holders to carry on the sand mining activities without getting the prescribed environmental clearance, thereby making it illegal. The lease was issued in 2013, when the state government floated tenders for 82 mining leases and reserve price was kept at Rs 51 crore.

However, the lease holders formed a cartel and acquired entire 82 mining leases for a reserve price of Rs 467 crore. The government did not object but add a rider that lease holders will have to get environment clearance, something the lease holders didn’t do. The mining department began applying pressure on the lease holders. Later, the Supreme Court allowed them to continue mining in December 2013, till they got environment clearance but asked them to adhere to rules.

However, the state government told the Apex Court that it was not doing lease agreement with these lease holders because they were dong mining without getting environment clearance. Some conservationists also approached the Supreme Court expressing concern about harm to the environment.

Money matters

Apart from Rs 467 crore lease money, the government also got Rs1,140 crore from fee for temporary permission, dead rent and royalty of sand mining. The government also benefited from handing over royalty collection to lease holders. No surprise that it was not keen on closing these mines